One of the UK’s largest solar investors has predicted a second wave of UK renewables deployment – potentially without subsidy.
“The reduction in the cost of deploying proven renewables infrastructure continues apace. This may make unsubsidised renewables generation a reality and points to a likely resurgence in new developments in the years ahead, both to replace fossil-fuelled generation as well as for repowering maturing ‘first generation’ renewables sites,” according to Renewables Infrastructure Group (TRIG) chair Helen Mahey.
The firm commissioned the 22.6MW Freasdail wind farm in Kintyre, Scotland, during the first half of 2017, its first construction project in the wind sector. It acquired almost 130MW solar farm acquisitions during the period, as well as the 35MW Port of Tyne battery storage project from RES, with whom it has a close relationship.
Posting an increase in pretax profits of 63% for the first half (£31.3m, from £19.2m), Mahey outlined opportunity for further investment and in wind, potentially offshore as well as onshore, and potentially with a view to construction, and batteries.
The firm is also examining some 500MW of potential solar deals and expects between 1GW and 2GW of UK solar plant to change hands in the coming 12-18 months.
“Public and political support for clean electricity in the UK and Europe remains strong, underlined by government initiatives designed to provide momentum for the switch to electric vehicles and to incentivise better demand-side response,” said Mahey.
“The broader market picture looks promising.”