Renewable Energy - The London Thames Gateway Opportunity
Renewable Energy is one of the world's fastest growing markets. Businesses are recognising the opportunities this exciting sector offers, and capitalising on international ambitions for utilising sustainable energy sources, and reducing waste and carbon emissions.
Always seeking to identify new sector opportunities, Gateway to London recently partnered with other global locations in a piece of international research to identify the market for Renewable Energy, carried out by Oxford Intelligence.
The results of this research have underlined Gateway to London's view that the sector represents a significant opportunity for the region's economic growth, and that London Thames Gateway could be the next key location for this innovative new industry.
Sector Growth
Oxford Intelligence report that the Renewable Energy sector now accounts for 15.3% of total electricity generation in the world's leading countries. This is expected to increase from about 1,475 Mtoe (million tonnes of oil equivalent) in 2003 to 2,349 Mtoe in 2030, a huge increase of 60%.
The number of Renewable Energy projects rose by 300% from 2003 to 2007, with a period of intensive growth predicted in coming years. This is being driven not only by legislative and planning requirements, but major interest from the financial community. Over the longer term, the highest growth markets for foreign investments are likely to be Biomass, wind and biofuel.
The research also highlights the strength of Europe over other continents, notably the North American market. Of the 480 renewable energy foreign direct investment (FDI) projects worldwide, Europe has secured 71%, and is seen as being the main growth region over the next few years.
Oxford Intelligence show that the UK is well placed to meet the escalating growth in renewable energy, with a "mature market" and a government that is supporting initiatives such as a green credit scheme for biomass and funding for wave energy. The report is also positive about the prospects of the market during the recession and believes that Renewable Energy will still see growth despite tougher economic conditions.
The UK ranks 4th amongst European countries in terms of foreign direct investment for renewables. London Thames Gateway, therefore has a significant opportunity to increase its share of the European market.
London Thames Gateway
Gateway to London was encouraged by the findings of the Oxford Intelligence report which supports our strategy for realising the huge opportunity that this sector can offer London Thames Gateway.
The research raises four key business issues and challenges for Renewable Energy - government policy, energy and product pricing, the current economic climate and market development. London Thames Gateway has both the right political environment and market conditions.
London has serious ambitions to be the leading world city on sustainability and climate change. Alongside the government's energy policy (Energy White Paper 2003: Our Energy Future - creating a low carbon economy), several initiatives and policies have been established to promote energy efficiency and stimulate the use of renewable energy.
Planning guidance in London requires major new developments to generate at least 10% of their energy needs from renewable sources, and energy efficiency ratings, such as the BREEAM ‘excellent' standard, are being written into the planning policies of many local authorities.
The region's wealth of universities and centres of excellence that are pushing the boundaries in Renewable Energy research, are a powerful attractant, meeting the sector's strong focus on market development. We are at the heart of Renewable Energy knowledge and intelligence and many global companies now base their research departments in the region as incubators for new ideas, products and processes.
This trend has been key to the development of new supply chains and a ‘knowledge cluster', which, in turn, addresses the importance of proximity to clients and supplies outlined in the report. This is identified as a key determinant in a firm's location, and with key developments like the new London Sustainable Industries Park in Dagenham Dock developing global reputations, London Thames Gateway's offer can only grow stronger.
Gateway to London believes that Renewable Energy will, in time, become an integral part of the London Thames Gateway economy. We are excited about the potential the market represents and working closely with our partners, such as Think London and the London Thames Gateway Development Corporation, to deliver important new projects such as the Cyclamax investment, announced this week and covered later in the update.
