United Kingdom 81
Limits in accessing private finance
Access to private finance for renewables in the UK is determined by a multiplicity of factors, leading to relatively high degrees of risk and uneven expectations.
More specifically, renewables’ access to private finance is affected by: (a) costs of
the adopted technologies; (b) the general volatility of market prices for electricity; (c) variations in prices of other resources (i.e. fossil fuels and nuclear); and
(d) uneven and/or unexpected changes in carbon markets. Technology costs are
in many ways the main driver in determining private financial support for
renewables, with technologically mature resources such as wind and solar more
favourably supported than niche ones. More generally, increasing interest from
private institutional investors in renewables in the UK, driven by the rapid pace
of cost reductions, makes the likelihood of a lack of private finance appear relatively limited (Winch and Wynn 2017, pp. 22–23). Nevertheless, the majority
of stakeholders underlined how the presence of many types of risk concerning
private finance means that the overall risk cannot be regarded as unlikely. In
addition, substantial reductions in private finance would lead, in the opinion of
several stakeholders, to significant damage for the technologies/resources
affected. Stakeholders unanimously identified better co- ordination between
national policies and private finance as the best way to mitigate the risk.
Environmental impact of renewable infrastructures and social opposition to
some renewable technologies
As already suggested for the ‘new nuclear’ pathway, two complementary risks
are analysed here under a single perspective. As addressed by those stakeholders who raised these two risks, these are often interlinked. While nuclear
is generally perceived as more threatening to nature and environmental preservation, questions have also been raised on the possible environmental
impacts of renewable technologies, with special regard to those that imply
large- scale development of new infrastructure in previously untouched natural
areas. Apart from unwelcome visual impacts, wind deployment using everlarger blades has raised concerns for the possible effects on migratory birds
(Hattam, Hooper, and Papathanasopoulou, 2017; Hooper, Beaumont, and
Hattam, 2017). Stakeholders suggested that, despite British public opinion
being generally favourable to renewable technologies (Allen and Chatterton,
2013), these risks have contributed to the rise of social opposition to some
renewable technologies. In addition to environment- related social opposition,
some stakeholders suggested that increases in electricity tariffs due to the need
for financial support for new clean technologies could lead to opposition.
Further objection to visually intrusive renewable solutions is likely, such as
with large- scale solar farms and onshore wind power plants (and already, for
example in mid- Wales, new onshore wind developments are politically virtually impossible). Stakeholders defined this set of risks as likely to happen and
in part already happening. At the same time the small size and localised
Limits in accessing private finance
Access to private finance for renewables in the UK is determined by a multiplicity of factors, leading to relatively high degrees of risk and uneven expectations.
More specifically, renewables’ access to private finance is affected by: (a) costs of
the adopted technologies; (b) the general volatility of market prices for electricity; (c) variations in prices of other resources (i.e. fossil fuels and nuclear); and
(d) uneven and/or unexpected changes in carbon markets. Technology costs are
in many ways the main driver in determining private financial support for
renewables, with technologically mature resources such as wind and solar more
favourably supported than niche ones. More generally, increasing interest from
private institutional investors in renewables in the UK, driven by the rapid pace
of cost reductions, makes the likelihood of a lack of private finance appear relatively limited (Winch and Wynn 2017, pp. 22–23). Nevertheless, the majority
of stakeholders underlined how the presence of many types of risk concerning
private finance means that the overall risk cannot be regarded as unlikely. In
addition, substantial reductions in private finance would lead, in the opinion of
several stakeholders, to significant damage for the technologies/resources
affected. Stakeholders unanimously identified better co- ordination between
national policies and private finance as the best way to mitigate the risk.
Environmental impact of renewable infrastructures and social opposition to
some renewable technologies
As already suggested for the ‘new nuclear’ pathway, two complementary risks
are analysed here under a single perspective. As addressed by those stakeholders who raised these two risks, these are often interlinked. While nuclear
is generally perceived as more threatening to nature and environmental preservation, questions have also been raised on the possible environmental
impacts of renewable technologies, with special regard to those that imply
large- scale development of new infrastructure in previously untouched natural
areas. Apart from unwelcome visual impacts, wind deployment using everlarger blades has raised concerns for the possible effects on migratory birds
(Hattam, Hooper, and Papathanasopoulou, 2017; Hooper, Beaumont, and
Hattam, 2017). Stakeholders suggested that, despite British public opinion
being generally favourable to renewable technologies (Allen and Chatterton,
2013), these risks have contributed to the rise of social opposition to some
renewable technologies. In addition to environment- related social opposition,
some stakeholders suggested that increases in electricity tariffs due to the need
for financial support for new clean technologies could lead to opposition.
Further objection to visually intrusive renewable solutions is likely, such as
with large- scale solar farms and onshore wind power plants (and already, for
example in mid- Wales, new onshore wind developments are politically virtually impossible). Stakeholders defined this set of risks as likely to happen and
in part already happening. At the same time the small size and localised