The UK’s Autumn Budget 2024 signals a clear drive towards energy transition, with an emphasis on renewables like offshore wind. Yet, debate persists around whether these policies will be sufficient to attract private capital. For Joshua Edward Green, recruitment consultant with the startup EVEREC, «There is enormous potential for positive impact, but it really depends on who’s in charge of these projects and how much they care about their success.» Through EVEREC, Joshua has closely followed the energy market and investors’ reactions to similar government initiatives.

Public investment: An incentive or a hurdle for private capital?

With approximately £1 billion in public investment earmarked for renewable energy projects, the 2024 budget demonstrates a significant commitment. However, Joshua, who has worked with companies in the electric vehicle charging sector across Europe, stresses the importance of balancing public and private roles.

“One should advocate for a more balanced approach when GBE collaborates with the private sector rather than dominating it,” he warns, suggesting that public-private partnership (PPP) models could ensure that public funds serve as a foundation for private sector growth.

For Joshua, fiscal policies are essential to attracting investment, but he also cautions against an overreliance on public funding. “While the budget is heading in the right direction, I think a more strategic shift towards direct public investment and a more diversified technology portfolio could offer a faster and steadier path towards the 2050 goal,” he explains. He underscores that regulatory challenges and policy stability are key factors that could influence private sector confidence in the UK.

Regulatory challenges and energy policy stability

As the UK works towards its net zero target by 2050, Joshua highlights significant regulatory obstacles that remain. Complex and lengthy permitting processes, outdated grid connections, and unstable policies are among the issues that could hinder investment in renewables. “Investors are always going to look for stability and something more or less politically bipartisan,” Joshua observes, emphasizing the need for durable political agreements that can provide stability to the energy sector.

Joshua suggests that greater flexibility in regulations and the modernization of grid infrastructure are essential steps to reduce uncertainty and attract more private capital. Furthermore, he underscores the importance of supporting research and development in technologies such as battery energy storage systems (BESS) and hydrogen, where fiscal incentives could play a key role in attracting investment into these emerging fields.

Energy sector taxation and the impact on the north sea industry

A critical point in the 2024 budget is the increase in the Energy Profits Levy (EPL) on North Sea oil and gas companies. While the measure aims to encourage these companies to reinvest in renewables, Joshua expresses scepticism about its effectiveness: “They could just take their money out of the country and go elsewhere,” he warns, highlighting the risk that some companies might choose to withdraw from the UK altogether rather than redirect funds to greener energy projects.

Joshua also questions the long-term effectiveness of the new employment tax introduced in the UK budget. He believes it could be counterproductive to the creation of new jobs and the growth of the renewables industry. In his view, eliminating or reducing this tax for the renewables sector could have a positive impact on talent recruitment, which EVEREC identifies as crucial for the sector’s advancement.

International cooperation: A support for UK energy goals?

The 2024 Autumn Budget aligns with the UK’s entry into the North Sea Energy Cooperation (NSEC), a memorandum of understanding promoting energy cooperation with countries such as Germany, France, and the Netherlands. Joshua sees this cooperation as a strategic opportunity for the UK to reach its goal of 50 GW of offshore wind energy by 2050. “This kind of two-way flow could be crucial for stabilising renewable energy both in the UK and in the region in general,’ he explains, highlighting how this framework allows renewable energy surplus to be exported to other countries, thereby reducing reliance on fossil fuels.»

«However, to maximize the benefits of this cooperation, Joshua stresses the need for regulatory alignment to accelerate cross-border projects and simplify investor engagement. ‘We need robust bilateral agreements, supported by a solid multinational governmental majority, to ensure the success of this initiative,’ he insists, warning that current regulatory differences between countries could slow the development of joint infrastructure, such as offshore wind farms and hybrid interconnectors.