Britain has lost its crown as Europe’s top destination for foreign investment in renewable energy and utility projects, as a sharp fall in new developments sees France take the lead, according to new figures from EY.
The number of green energy and utilities projects backed by overseas investors in the UK dropped by 57 per cent in 2023, falling from 93 to just 39 in a single year. That slump saw the UK overtaken by France, which grew its foreign-backed projects to 74, up from 65 in the previous year.
EY’s annual UK Attractiveness Survey found that the downturn in clean energy investment led to a 70 per cent drop in new jobs, from 4,819 in 2022 to 1,452 last year, despite a broader surge in renewables investment across Europe.
Lee Downham, EY’s UK energy and resources lead, warned that unless urgent action is taken to streamline planning and grid connection, the country’s net-zero targets and energy security goals will be at risk.
“The UK must continue to attract a strong pipeline of renewable investments if it’s to achieve its energy security ambitions,” he said. “While investors have traditionally viewed the UK as an appealing destination for clean energy, lengthy planning procedures, slow grid connectivity, and uncertainty over future pricing have been seen as drags on UK attractiveness.”
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