Outlook for UK wind energy ‘very positive’ despite political shift abroad, says Schroders Greencoat founder

The company holds three investments in Yorkshire – including its two largest – with the offshore wind farms Hornsea 1 and Humber Gateway, which together make up 25 per cent of the firm’s total portfolio.

Speaking to The Yorkshire Post, Stephen Lilley, founding partner of Schroders Greencoat, said that he believed public sentiment towards renewables remained strong in the UK, and welcomed the aspirations of the Labour government towards green energy.

He said: “While global political shifts can influence broader sentiment, the UK government has consistently reinforced its commitment to expanding renewable energy generation. My sense is that public support for wind energy remains strong, driven by concerns over energy costs, climate change, and energy security.”

Mr Lilley’s comments come after last month, the Associated Press reported that Donald Trump’s administration was set to terminate grants for two major clean energy projects, with around 300 others which are funded by the Department of Energy also under review.

Trump’s first day in office also saw him sign an executive order to pause all leasing of federal waters for offshore wind projects, as well as pausing all new or renewed approvals for wind projects on federal land until the completion of a comprehensive review.

Mr Lilley said, however, that Greencoat’s work remains “isolated” from actions in the US.

He said: “Given we own and operate wind farms that are in the UK, we are isolated somewhat from actions in the US. In the UK, wind continues to be the most mature and widely deployed renewable energy technology and it is also one of the lowest cost forms of generation.

“We’ve seen from the Labour government a significant increase in aspirations for the wind sector and for renewable generation in general.”

Mr Lilley said that for the UK Government’s target of doubling onshore wind and tripling offshore wind capacity to be achieved by 2030, Greencoat estimates that an additional £125bn of investment would be needed, adding that the company is “well placed” to continue supporting the UK’s net zero ambitions.

His comments also come after BP announced in February that it was cutting renewable energy investments to focus on increasing oil and gas production. The company announced plans to increase its oil and gas investments by around 20 per cent, or around £7.9bn, while decreasing planned funding for renewable energy by around £3.9bn.

Mr Lilley added: “While some companies have adjusted their strategies away from renewables, at Greencoat UK Wind we have a simple, low risk and proven strategy that is focused on owning and operating UK wind farms.

“We remain fully committed to the UK renewables sector, where the long-term fundamentals for wind energy remain strong.”

Mr Lilley noted, however, that the UK wind market has not remained immune to challenges.

He said: “For us as a listed renewable infrastructure fund, the equity markets have remained challenging.

“There is a need for continued investment in grid infrastructure to accommodate increasing renewable capacity, and policy stability and efficient planning processes are also crucial to ensuring the timely development of new projects. But overall, we think the outlook for wind energy is very positive.”

Mr Lilley added that he believes Yorkshire will continue to serve as a hugely important area for the UK’s wind power industry.

He said: “Yorkshire is a key hub for UK wind energy, particularly offshore, with some of the UK’s largest wind farms. And for us at Greencoat UK Wind, it is extremely important.

“You can see Yorkshire’s importance, not only to us, but also the wider renewable energy landscape and we anticipate this will continue with potential further build out offshore helping to deliver the UK’s net zero ambitions and also providing economic growth for the local economy.”