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A new report by the London School of Economics (LSE), titled ‘Energy and the Economy: The 2030 Outlook for UK Businesses’ has estimated that £330 billion is needed to be invested into the UK’s ageing energy infrastructure before 2030 in order to avoid nationwide blackouts, and still meet the climate targets.
The figure is a huge step up from the governments estimates of £110 billion that they were hoping to spend on upgrades by 2020.
The report tried to cover a variety of possible futures in order to prepare for every outcome. It outlined three scenarios; one in which the UK and EU economies recover sufficiently for the $330 billion to be invested in clean energy; a second in which the UK pursues its ‘dash for gas’; and the third, where austerity has led to stagnating investments and green technologies and plans are forgotten.
Related Article: The Close Relationship between Economic Growth and Carbon Emissions
Professor Samuel Frankhauser, the author of the report, warned that businesses must already start to prepare for a wide variety of energy scenarios in the future. “A slight change of emphasis in policy, a weakening economic picture or a preference for cheaper energy sources over low carbon energy generation could result in very different operating environments for UK businesses. It is crucial UK businesses take action now to overcome the potential challenges they may face.”
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com