Renewable energy shortfall

11 April 2007
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12 April 2007

Demand for "green" energy from UK firms is likely to far outweigh supply, according to a study.

Analysis firm Datamonitor said UK companies were hoping to buy 34 terawatt hours (TWh) of renewable energy in 2007. But the amount of renewable energy produced in the country last year only amounted to around 12 TWh.

Some UK companies, including the John Lewis Partnership (News, 1 March), have committed to sourcing all their energy from renewable sources. According to the study, 28 per cent have a target for sourcing renewable energy.

The government has set a target of generating 10 per cent of UK energy from renewable sources. Yet Paul Stewart, energy and utilities analyst at Datamonitor, said: "Rising UK demand for green energy is not a strong enough incentive alone to bring sufficient renewable generation capacity online."

A spokesman for energy regulator Ofgem said it was investing around œ5 billion in its networks, which should improve connections to renewable sources, such as wind farms.


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