Foresight Solar Fund (FSFL)’s Post

Great conversation between Keith and Richard on the challenges of GB's offshore wind targets, covering grid connection queues, permits, supply chains, locational pricing, cost of capital, and workforce skills. While each topic could easily have a whole podcast, it's fascinating to hear industry perspectives. Here are some key takeaways: § Grid Connection Queues: There's an oversupply of capacity in waiting projects, many times more than needed, but no clear signals for developers and investors. § Supply Chain Issues: A lack of global supply chain for essential equipment like transformers and cables. § Locational Pricing (Zonal pricing): Economically makes sense, but timing is crucial to avoid uncertainty that deters investors. § Skills Shortage: Coordinated efforts are needed to boost GB's skilled workforce, a critical issue often overlooked in many regions. One intriguing point raised by Keith is the need to define what you want in the grid and by when, in order to address grid queues. Setting a target of X GW of technology Y by year Z could give clearer signals to market players, better than today’s uncertainty. The current wind offshore target, though very ambitious, provides a clear signal to the market for 2030. However, the path to achieve it remains blurry. If similarly very ambitious targets are set for other technologies, would it help more? Is an “unrealistic” target better than no target? It can be very risky, potentially leading to various issues later on. We've already seen the impact of market signals on offshore wind projects, with many cancelled last year due to rising interest rates, unrealistic expectations of significantly lower costs, and an overestimated supply chain capacity. Energy markets are dynamic, posing risks for developers and investors. How much risk can they take, and how do we provide certainty for reaching targets?

UK political parties released their manifestos this week, offering a glimpse into what the next four years could look like in the UK! It’s so important to know what each party wants to do with the country and, more importantly, how it will affect businesses like yours and ours! Below, we’ve curated a few key pledges from each party so you can see how their plans for Energy & Net Zero will affect you: 🔴Labour: - Clean energy by 2030. - Double onshore wind, triple solar power and quadruple offshore wind by 2030. - Create a new publicly-owned company, Great British Energy, which will deliver clean power. - Maintain a reserve of gas power stations to guarantee security of supply. 🔵Conservatives: - Remain committed to delivering net zero by 2050. - Treble the UK’s offshore wind capacity. - Invest £1.1 billion in the Green Industries Growth Accelerator. - Support solar in the right places and not on the UKs best agricultural land. 🟠Liberal Democrats: - Aiming to be net zero by 2045. - Invest in renewable power so that 90% of the UK’s electricity is generated from renewables by 2030. - Appoint a Chief Secretary for Sustainability in the Treasury. - Restore the UK’s role as a global leader on climate change. 🟢Green Party: - Aiming to be net zero by 2040 at the latest. - Wind will provide around 70% of the UK’s electricity by 2030. - Communities to own their own energy sources. - Remove all oil and gas subsidies. #generalelection #ukelection #manifesto #energy #netzero #northeast #northeastbusiness #energyconsultancy

📢 Today the Department for Energy Security and Net Zero, Department for Levelling Up, Housing and Communities and HM Treasury announced the effective ban on onshore wind farms in England has been lifted. "Labour has quickly demonstrated its commitment to providing the policy certainty businesses seek on energy and net zero," says CLG UK Director, Beverley Cornaby. "Amendments to the approval process for new onshore wind projects now level the playing field with other energy proposals, making them more attractive for investment and moving the UK closer to a secure, clean energy supply. However, effective community engagement and ensuring local communities benefit from renewable energy projects remain crucial for a fair and just transition." 📚 Read the government's policy statement on onshore wind here: https://lnkd.in/eCbBxqJy Cambridge Institute for Sustainability Leadership (CISL) #netzero #greeninvestment #renewable #onshorewind #renewableenergy #energytransition

🌐 Exciting News in Clean Energy! National Grid, the FTSE 100 powerhouse overseeing UK and US power grids, is supercharging its investment to £42bn by 2026. A record £3.5bn spent in H1, reflecting the green policy surge on both sides of the Atlantic. 🌍🔌 🚀 Pushing Boundaries: The company is on a mission to connect clean energy projects to the grid, vital for the UK's 2035 target of running entirely on clean electricity. However, a backlog challenge looms, with a staggering 50GW increase in the last quarter, reaching 400GW in total – far surpassing the existing power capacity of 65GW. 💡 Innovative Solutions: CEO John Pettigrew emphasises the need for "fundamental reform" in the UK's electricity network planning. Initiatives like the amnesty deal have already shaved 5GW from the backlog. National Grid is also collaborating with regulators and legal firms to clear the way for viable projects and tweak rules, potentially freeing up another 40GW. 🌐 Building a Sustainable Future: National Grid's commitment to 17 major onshore and offshore transmission projects in the UK, coupled with efforts in the US to unlock renewable generation, underlines its dedication to creating a clean, fair, and affordable energy landscape. 🌱 Overcoming Challenges: While the company's profit for H1 is £1.4bn (down from £1.7bn last year), the focus remains on meeting opportunities and challenges head-on. Join us on this journey towards a cleaner and greener energy future! 💚🔗 #NationalGrid #CleanEnergyFuture #SustainableInvestment #RenewableRevolution

In a time where the winds of change have presented both challenges and opportunities, Greencoat UK Wind [LON:UKW] prevails, exemplifying resilience and prosperity amidst a turbulent sector. Its five-year return of +35.9% is a beacon of success, outperforming its peers with a +10.39% sector return. Even over a decade, its +137.9% return surpasses sector benchmarks by 52 percentage points, showcasing sustained performance and a robust investment strategy. The renewable energy landscape faced headwinds, from the ripple effects of geopolitical tensions to the inflationary pressures of a post-pandemic world, but Greencoat UK Wind's foundations stood firm. With a clear focus on UK wind farms, it carves a path to sustainable dividends and transparent income for shareholders, a testament to its strategic investment choices and management expertise. Despite adverse market conditions and a collective sector downshift, the fund's tenacity is mirrored in its dividend reliability and measured share structure reorganisation, echoing its commitment to long-term stability and shareholder value. As the UK doubles down on its Net Zero commitments and recognises offshore wind as pivotal to its energy strategy, Greencoat UK Wind emerges not only as a participant but as a leader in the renewable domain. With such positive impact and vision for a cleaner tomorrow, the question remains: How can investors, both seasoned and new, leverage Greencoat UK Wind's success to further propel the indispensable transition to renewable energy? Let's discuss. 🌱💨🌍 #GreencoatWind #RenewableEnergy #SustainableInvesting

Yesterday, UK Director Olivia Powis spoke at the first session of the Environmental Audit Committee inquiry on ‘Enabling sustainable electrification of the UK economy’, chaired by Philip Dunne MP. Olivia spoke alongside energy industry experts: 🔹Chris Hewett Chief Executive, Solar Energy UK 🔹Peter McCrory Policy Manager – Networks and Charging, RenewableUK 🔹Susie Elks, Senior Policy Adviser, E3G Key takeaways from the session: ▪️ Olivia stressed the crucial role of CCUS and low carbon hydrogen in enhancing energy security and reducing reliance on fossil fuels. With the UK Government committed to establishing operational CCUS clusters by the mid-2020s, industry progression is imperative. ▪️ Addressing inquiries on supporting low carbon energy rollout, Olivia highlighted the positive momentum gained from initial investments in CCUS clusters and emphasised the need for pipeline certainty to expedite delivery. ▪️ Witnesses acknowledged the UK Government's framework for achieving targets by 2030 but stressed the urgency of expediting implementation. For more information visit: https://lnkd.in/eaXNhwkJ #CCUS | #CarbonCapture | #NetZero

⚡Great news for the UK's green energy sphere! Exciting times ahead as Corio Generation's CEO, Jonathan Cole, has highlighted a sparking opportunity for the clean energy sector. The Labour Party's ambitious project, GB Energy, could be a game-changer in accelerating the UK's shift towards sustainable power with a particular boost for floating wind projects. 🌬️💨🇬🇧 With a substantial £8.3bn pledged to kickstart GB Energy, we're looking at a potential revolution in how we approach energy production and consumption. Could this be the dawn of large-scale floating wind farms gracing our coasts? The ripple effects on job creation, technology advancement, and environmental impact are huge. 📈 As we prioritize our planet's health and our energy independence, initiatives like this can't come soon enough. Keen to weigh in on the future of UK's floating wind or share insights on clean power investments? Let's channel the wind of change - drop a comment below or message me to join the conversation! 📥 #CleanEnergy #GreenInvestment #UnitedKingdom

As we start #cop28, more salt in the wound for #renewables – and more uncertainty in corporate #carbon risk management plans. #climate #ghg #sustainability

An informed view from Rich Hall, Head of Sustainability at RSM UK, on the need for investment in carbon capture, usage and storage in the UK, and how this will benefit the UK oil and gas industry, and wider economy. Take a look: https://lnkd.in/ddbHWQ7p #energytransition #netzero #sustainability #carbonreduction #energysecurity #rsminsights

Renewable energy takes centre stage as the new UK Labour government, steered by Chancellor Rachel Reeves, commits to a breakthrough in England's energy strategy. The lifting of the de-facto ban on onshore wind farms marks a pivotal shift in our nation's approach to sustainable energy. Today, the Chancellor paints a new future, one where economic growth is not just a hope but a 'national to-do list', a collective mission we're all now a part of. As we bid farewell to a period of 'chaos and irresponsibility', the winds of change are upon us, ushering in an era where the growth of our economy goes hand-in-hand with the health of our planet. #RenewableEnergy #OnshoreWind #SustainableGrowth #UKRenewables