More energy projects stalling before investment decisions

An increasing number of UK energy projects are stalling before reaching final investment decisions, a survey has found.

Projects are struggling to secure bankable offtake deals and long-term contracted revenues, while delays in permitting, grid access and policy uncertainty are also adding risk, the Energy Industries Council (EIC) report found.

Stuart Broadley, the EIC’s chief executive, said the UK needs to treat the energy system as one integrated chain, not a set of separate policy programmes.

 “The supply chain is one system. If the UK keeps sending mixed signals, capital and capability move elsewhere,” he said.

The organisation said its database of energy projects under development confirmed the trend. Offshore wind reached FID in seven of 33 UK projects, while hydrogen reached FID in three of 120 projects. Floating offshore wind recorded zero projects at FID out of 51. Carbon capture reached FID in five of 70 projects.