The UK needs to invest a total of $ 350 billion (over $ 400 billion) in clean technologiesIncluding hydrogen phases, renewable energy and battery storage To complete its zero net transition over the next 30 years, According to a new report.
Report, entitled Alignment of stars: Property owners and energy investment towards net zero, Posted by LCP The scale of investment opportunities for private equity is helping the UK government achieve its goals of net zero and energy is outlined on the white paper.
The LCP estimates that the energy sector will be able to create unused private capital with the aim of decorbonising the UK economy to create “$ 350 billion worth of investment assets” over the next 30 years. This equates to investing 12 12 billion a year until 2050.
LCP believes that existing renewable technologies such as wind and solar will lead to battery storage, as well as create new opportunities in innovative technologies such as hydrogen.
The LCP’s analysis of the report highlights two different scenarios and the amount of investment that could emerge in the coming years.
In ‘business as usual’, UK energy property owners will raise their infrastructure investments to $ 70 billion over the next decade, leaving a $ 100 billion financial gap by 2030.
The situation is even more optimistic for global property owners and UK property owners working with the government to increase their exposure. With careful design and investment targeting, it could invest up to $ 125 billion over the next decade and the $ 350 billion needed by 2050.
The LCP report states that it needs to work with investors to provide adequately sized assets with the right sizes and risk levels / interested global property owners. “Current investment levels are often structured by a lack of demand from investors, but the problem is really the lack of supply and assets are at the right risk return levels,” the report said.
Kyle Martin, The LCP’s head of market knowledge said: “The government’s Energy White Paper reaffirms that a one-size-fits-all approach is needed to achieve net zero. There is widespread diversification in both existing technologies and required assets, and technologies such as hydrogen and carbon capture are still in their infancy, which will have to be widely used from existing technologies such as wind and solar.
The report finds that well-known renewable energy technologies such as wind and solar will continue to represent the largest investment opportunity of the medium term, and that the study of coastal wind and sun will be a stimulus for the next round of contract bidding for differences. More presentation of projects.