Investor caution threat to 2030 targets

The 2030 Clean Power target could be missed by more than a decade as generators and investors face growing pressures, a report has warned.

Cornwall Insight said its forecasts showed that once “real-world downside delivery risks” are factored in, the Government could reach 86% of generation from low carbon sources by 2030, nine percentage points short of the Government’s 95% renewable ambition.  Under such a scenario, the Clean Power targets might not be met until the mid-2040s.

Persistent grid connection delays, elevated capital costs from higher interest rates, market saturation of certain technologies such as batteries, slower offshore wind and nuclear rollout, and continued policy uncertainty around long-term revenue frameworks are among the key challenges faced.

The report said these obstacles are slowing down the time taken for already financed projects to become operational and making investors more hesitant to commit capital to new developments.