Renewable and low carbon energy is a key growth sector for the UK as the people and business all over the world are committing to making a positive and significant impact on the causes of climate change. Leveraging current and emergent renewable technologies is key to the pursuit of a global low-carbon future through carbon emissions reduction.
The sector is embracing a wide range of technologies including onshore and offshore wind, wave and tidal, hydropower, solar heating and photovoltaics, deep geothermal; heat pumps, bioenergy and wastes. Bioenergy is further split into landfill gas, sewage gas, domestic and industrial wood, plant and animal biomass and anaerobic digestion. Sources of energy from waste include those from the combustion of tyres, hospital waste and general industrial waste.
The UK’s largest sources of renewable energy are bioenergy, onshore and offshore wind and wastes. Both bioenergy and wind power have grown strongly over the last five years. Hydropower provides a highly volatile output. Waste sources have increased steadily as businesses have been pressured to utilise waste products, and now account for between 6% and 8% of the total.
Long established businesses and new entrants are pursuing these opportunities. Direct capital raising and financing through consumer investment funds are helping to fuel the growth. It’s estimated that for 2017/18 green energy is equivalent to 19.7 million tonnes of oil.
The use of use of renewable energy sources is expected to grow quickly over the five years to 2022-23, to total 23.2 million tonnes of oil equivalent. The United Kingdom is legally bound by an EU target requiring that 15% of final energy consumption must come from renewable sources by 2020. To meet this target, 30% of UK electricity, 12% of heat and 10% of transport energy must be generated from renewable sources.
The businesses in the sector that we help include entrepreneurs, established energy businesses, funds and fund managers. Our work covers:
- Business structure, including start-ups and joint ventures
- Audit – including funds
- Corporation tax planning and compliance
- Research and development tax credits
- Cash flow modelling
- Corporate finance
- Feed-in tariffs
International agreements, public opinion and politics are driving global change and at a national level tax breaks, grants, incentives and penalties are very important across the industry, both to companies and investors.