The second edition of  kicked off with an insightful panel discussion titled "Insights into UK & Ireland Renewable Energy Markets", featuring prominent industry figures such as Monika Paplaczyk, Investment Director at Thrive Renewables; Chris Hewett, Chief Executive of Solar Energy UK; Ali Qureshi, Country Manager UK & Ireland at Atlantica; and Lyudmil Banev, Director at NatWest. Moderated by Alexa Sharples, Director of Corporate Strategy at Low Carbon, the session delved into the challenges and opportunities in the renewable energy sector.

The panelists discussed the UK Government’s ambitious Clean Power 2030 strategy, which aims to significantly expand renewable energy capacity. However, the experts warned that without substantial grid expansion, the UK would struggle to fully integrate renewable energy, and gas generation would remain necessary, preventing the country from meeting its clean power goals.

The conversation also took place in the context of a changing political landscape, with the Labour Party returning to power in July 2024 after 14 years of Conservative rule. Led by Sir Keir Starmer, the new Labour government has set ambitious energy and climate targets, aiming to transform the UK into a "clean energy superpower" in the near future. Their plans will play a crucial role in shaping the UK’s energy transition and meeting its renewable energy goals.

Monika Paplaczyk expressed both optimism and concern about the UK's renewable energy progress. While the country is advancing quickly in developing renewable projects, she noted that the issue of grid connections remains a significant bottleneck. Many projects are opting for grid sharing, which introduces risks—particularly if projects further down the queue do not materialize. This could result in stranded projects and delays, ultimately impeding progress. Paplaczyk also highlighted the geographic concentration of projects, which could create local social issues, particularly in communities where development is concentrated. She stressed that the government must take a holistic approach, balancing technical solutions with social impacts.

Chris Hewett echoed the optimism around the government’s renewed commitment to clean power but raised concerns about the pace of change. While the decarbonization roadmap is clear, he emphasized the need for effective grid planning and reform. With the growing concentration of renewable energy projects, ensuring that timelines align with project needs is crucial. Hewett also highlighted that political support for renewable energy is stronger than ever, making it a promising time for progress—but warned that trying to do too much at once could risk undermining the efforts.

Ali Qureshi shared similar optimism about the UK market but pointed out several uncertainties. While investor interest in solar and storage projects is strong, Qureshi questioned the timing and feasibility of achieving the country’s ambitious energy goals. He noted that while there is a clear demand for investment, grid connections and regulatory clarity remain significant hurdles. He stressed that these practical challenges must be addressed to ensure projects can move forward within the required timeframes.

Lyudmil Banev was generally positive about the UK market, noting its stable regulatory framework and how this makes it an attractive proposition for investors. However, he also acknowledged that grid issues remain a challenge. Despite this, he was confident that the UK market would remain bankable, thanks to its stable revenue regime, particularly under the Contracts for Difference (CfD) scheme. He also noted that GB Energy, a new initiative launched by the government, could play a pivotal role in facilitating investments in emerging technologies like offshore tidal and hydrogen. While Banev saw potential in the program, he called for more clarity around its long-term ambition to help investors plan effectively.

The Future of GB Energy

The introduction of Great British Energy (GB Energy) sparked much discussion among the panelists. Paplaczyk was cautiously optimistic, emphasizing that for GB Energy to succeed, it must have clear objectives and a structured approach to collaboration with the private sector. She highlighted that GB Energy’s role should focus on accelerating project development and financing, while ensuring that private sector investment is not crowded out. Additionally, she welcomed the inclusion of community energy in GB Energy’s initiatives, believing that local involvement in renewable projects could strengthen relationships between developers and communities.

Hewett also saw potential in GB Energy, particularly in fostering community energy initiatives. However, he cautioned that the program must complement, not replace, the private sector’s efforts. GB Energy’s involvement should help unlock opportunities, particularly in the public sector, but it must work alongside existing industry players rather than overshadow them.

From Qureshi's perspective, GB Energy could provide valuable support in financing and scaling up projects, but timing is critical. He stressed that the initiative needs to address key challenges, particularly grid connections and supply chain issues, to ensure it can deliver on its promises.

Banev was encouraged by the initial engagement with the financing community and suggested that GB Energy could be a catalyst for the development of newer technologies, including offshore tidal and hydrogen. He noted that many of his colleagues have moved into roles related to GB Energy, signaling serious commitment to the initiative. However, he emphasized that clarity on specific targets and the initiative’s long-term ambition would be key for maintaining investor confidence.

Goals for renewable energy in the UK

The UK’s renewable energy targets are ambitious, with the country aiming to achieve 47 GW of solar capacity by 2030, up from 15 GW at the end of November 2023. In addition, the UK plans to increase grid-connected battery storage from 5 GW to 22 GW and to make substantial investments in transmission infrastructure to support this transition.

Paplaczyk emphasized that community engagement is central to meeting these goals. She believes that local communities should not just be passive beneficiaries but active stakeholders in renewable projects. Paplaczyk advocated for expanding this model across the sector to increase project success and community buy-in.

Qureshi acknowledged the ambitious nature of the UK’s energy targets but questioned whether the country would have the necessary workforce and supply chain to meet these goals in the required timeframes. The demand for investment is clear, but he emphasized that clear regulatory frameworks and timely decisions are essential to maintain investor confidence and ensure the goals can be achieved.

Hewett, while confident that the UK could meet its solar goals of 50 to 60 GW by 2030, echoed concerns about the need for a reformed grid and more skilled workers to handle the influx of renewable projects. He warned that the concentration of projects could lead to delays and mismatched timelines, which could hinder the UK’s progress towards its renewable energy targets.

Finally, Banev highlighted the importance of storage and co-location in achieving the UK’s renewable energy goals. He believes that solar and battery systems, whether integrated or standalone, will be crucial in providing a reliable and sustainable energy supply by 2025. These technologies will play a key role in ensuring that the UK’s renewable energy transition is both successful and sustainable.