The UK must have a clear policy on energy to encourage renewable growth.

A report by the International Energy Agency (IEA), states that renewable energy will be the largest source of power generation in the future. Rising costs and aggressive growth in emerging nations will help increase renewable energy’s market share. The IEA warned that the UK’s lack of a clear energy strategy could hinder investment in renewables and reduce growth. According to the IEA, growth can be up to 25 percent if markets and policy conditions are improved. According to the report, the UK’s renewable capacity will drop by half this year from 4GW down to 2GW . The main reason is due to changes in policy regarding renewables subsidies. The UK government cut subsidies for renewables in recent months to reduce costs. Fatih Birol, Executive Director of the IEA, stated that governments must eliminate any doubts about renewables if they want these technologies to reach their full potential and make our energy system more sustainable. The report highlighted the importance of renewables in reducing climate change and increasing energy security. However, it stressed that government policies must be removed that could prevent greater deployment. According to the report, there will be offshore wind cost cuts that should increase deployment across the EU and the UK after 2017. It stated that capacity additions in OECD Europe will drop in 2016, mainly due to short-term incentives changes in the UK. They should then increase slightly thereafter as increased offshore wind installation picks up because cost reductions are perceived as being stronger after 2017,”. However, the report does not expect British installations to resume pre-election levels. For deployment to rise, the IEA recommended that there be a rapid clarification on future support. Labour Shadow Energy and Climate Change Secretary Lisa Nandy stated in a statement that “now the International Energy Agency couldn’t be more clear: this policy chaos is destroying investor confidence and blocking needed low-carbon energy infrastructure.” She also said: “What was once a British industrial success tale is being destroyed because this government has failed to keep a stable regulatory system.”