LSE report: £330 billion investment needed in energy sector

Between 1 July 2019 and 31 December 2019, at least 10% of people who switched energy supplier for both gas & electricity with Uswitch saved £479 or more.

The UK will need to invest a staggering £330 billion in its energy sector by 2030 in order to meet its carbon emissions targets, according to a new report by the London School of Economics (LSE).

The huge investment is required to limit the country's energy demands, as well as to fund the construction of new power plants and to retrofit the existing ones with carbon-reduction technology.

The report was commissioned by RWE npower, one of the numerous energy providers currently participating in the Warm Home Discount Scheme.

RWE npower's chief executive Volker Beckers said that only around 30 or 40 per cent of the investment could be covered by British energy companies, leaving the majority requiring external investment.

He said: "The key question will be how do we attract pension funds, which are one source of capital, and generally the financial sector, being banks and insurance companies, to join the market?"

Many experts have previously suggested that £200 billion worth of  energy investment would be required by 2020, with other reports showing that Britain's power grid alone would require £1.6 billion worth of investment in order to connect it with renewable energy.

However the LSE report suggests that in order for Britain to truly reach its long-term climate change targets it would require  sustained period of economic growth, as well as the Eurozone debt crisis being resolved.

The report outlines three possible scenarios with the most optimistic option also the most expensive.

In its report the LSE said: "It involves a financial services sector in good health, that has not only recovered sufficiently to channel higher levels of inward investment and to attract international investment in the UK."

In alternative scenarios revolving around either a gas-focused option or an austerity scenario, growth would be rather slow and neither would see carbon reduction targets being met.

Latest gas and electricity news brought to you by UK Power - the energy price comparison site.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.