UK announces new investment in green energy projects

The UK government announces on Thursday, October 10, 2024, that it had secured more than £24 billion ($31.3 billion) of private investment in green energy projects, as it gears up for an international investment summit. FILE / STOCK PHOTO

LONDON — The UK government on Thursday announced that it had secured more than £24 billion ($31.3 billion) of private investment in green energy projects, as it gears up for an international investment summit.

Prime Minister Keir Starmer called the investments “a huge vote of confidence” in his Labour government and its long-term growth plans, despite a stuttering start in power since the party’s election win in July.

Labour, in opposition for 14 years, has vowed to revitalize the UK economy, which it claims faltered badly during successive Conservative administrations since 2010.

Central to its plans is green energy, to transition the country away from polluting fossil fuels towards renewables such as wind, wave, and solar, to meet net-zero targets.

READ: Green energy investors want gov’t to revise one-size-fits-all auction model

But Starmer and his finance minister Rachel Reeves have been accused of scaring off investors by relentless talk of a dire economic inheritance from the Tories and warnings about tough remedial measures to come.

Spain’s Iberdrola, which owns UK energy provider Scottish Power, said it was doubling its investment in the UK over the next four years to £24 billion.

Denmark’s Orsted is investing £8 billion and Portugal’s Greenvolt £2.5 billion, Downing Street said in a statement.

The announcements come after a record 131 new green infrastructure projects were awarded at auction last month, including plans for Europe’s two biggest offshore windfarms.

Starmer said creating the right conditions was key to boosting growth and that the International Investment Summit on Monday would be a “springboard” to do so.

READ: Last coal-fired power station in UK closes

The UK premier and Reeves are both slated to speak at the meeting in central London.

Labour announced its green energy strategy in July, including Great British Energy, a public-owned body that intends to spur investment in domestic renewable projects.

Great British Energy will receive £8.3 billion over the next five years.

Last week, the government announced nearly £22 billion of investment over 25 years to support three carbon capture projects in northeast and northwest England.

It has also lifted a ban on onshore wind projects in England, introduced after opposition from local residents.