24 Jun 2021
Posted in Power
Increasing investment in wind power to lead UK’s transition from thermal power to renewables, says GlobalData
Renewable power capacity in the UK is expected to increase from 46.7 GW in 2020 to 110.5 GW by 2030, growing at an impressive compound annual growth rate (CAGR) of 9%. One of the prominent drivers for the renewable segment in the country is the growth of wind power, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘United Kingdom Power Market Outlook to 2030, Update 2021 – Market Trends, Regulations, and Competitive Landscape’, reveals that with the UK government’s decision to phase out coal-based power generation, the share of thermal power capacity in the UK is expected to decline from 41.9% in 2020 to 26.8% in 2030. To maintain supply security and diversify its power sources, the government is working towards increasing the share of renewables in its energy mix.
Rohit Ravetkar, Power Analyst at GlobalData, says: “The government has announced an investment of £95m ($132m) to expand the offshore wind capacity. With strong government support, wind power is expected to maintain its status as the dominant source of renewable power until 2030. During 2020–2030, the cumulative wind power capacity is expected to rise from 24.88 GW to reach 66.2 GW.
“All coal-fired power plants in the UK will be shut down by 2025. In addition, there are plans in place to move away from nuclear power and retire all old nuclear power plants in the country in the next ten years. Therefore, huge investments are required to ramp up renewable capacity addition to fill up the capacity vacuum and cope with electricity demand. The government is introducing new policies and partnering up with private entities to drive the growth of renewable power. In March 2021, GE Renewable Energy announced that it will build a new offshore wind blade manufacturing facility in Teesside in collaboration with the UK Government. Such initiatives will help the country to augment its renewable power capacity.”