There were 400 new energy projects commissioned outside the traditional energy sector last year, but the pace of growth is slowing in the face of changes to financial support schemes, according to Smartest Energy’s annual Energy Entrepreneurs report.
The total number of projects – owned by developers, farmers, landowners and communities - rose 6.2% during 2017, the report said, and increased generating capacity in the sector by 8.2% (adding 1GW). In total, 6,809 such projects now have a combined capacity of 13.8GW and they provided 9.2% of the UK’s energy supply in 2017. However, Smartest Energy said £227 million invested in new projects in 2017 was almost 20% down from the previous year and far below the peak of £418 million invested in 2014.
Iain Robertson, Vice President Renewables at SmartestEnergy, said, “The reduction in subsidies has inevitably slowed growth in the independent generation sector but these latest figures underline the significant role energy entrepreneurs continue to play as the UK shifts to a decentralised, decarbonised and digitised energy system.”
Instead of central support, developers are seeking news ways to underwrite financing for the sector, Smartest Energy said. That included corporate power purchase agreements – which covered 1.6TWh last year – and new commercial structures that bring together generation and storage.