Renewable energy generation increased by a fifth in 2014, compared to the year before, with electricity generated from renewables increasing by 20%, installed capacity increased by nearly a quarter, and jobs in the industry increased by 9%. The Renewable Energy Association (REA)'s figures show that total electricity generation reached 64,404GWh in 2014, up by an encouraging 20% from 53,667GWh in 2013, with many sub-sectors making significant increases in their overall contribution to the UK’s energy mix.

The news comes shortly after the REA reported a nine per cent increase in jobs in the renewable energy industry across the UK since 2013, with regions such as the East Midlands, North West, London and Scotland showing stronger than average employment growth.

Despite the promising figures for generation, the REA is warning against complacency, since the 16% growth rate required to ensure that the UK meets its obligation to produce 15% of its energy (electricity, transport and heat) from renewable sources by 2020 is one of the highest for any European Union member state.

The new government has imminent decisions in the FiT review and on extending the Renewable Heat Incentive (RHI), which only has funding allocated until April 2016. The industry needs certainty as soon as possible to ensure that growth in this vital area continues.

Renewable transport remains stagnant, with the UK government needing to make a clear decision on the Renewable Transport Fuel Obligation, which is currently capped. If this is not rectified, the UK will fail to meet its 2020 targets.

Commenting on the figures, Chief Executive of the Renewable Energy Association, Dr Nina Skorupska said:

“We are delighted that renewable energy sources are becoming an ever greater contributor to the UK’s energy mix. Today’s figures show excellent progress in a number of sectors, both in terms of generation and installed capacity. But we cannot be complacent. Our analysis shows that where regulatory and financial support for renewable energy has been stable and sufficient, there has been considerable success, but where there has not, technologies have either stalled or gone backwards.

“In light of the growth rate for renewables needed for the UK to meet its 2020 targets, it is vital that the new government demonstrates the necessary leadership and ambition to enable our industry to thrive.”

Ronan O'Regan, Director, renewables & clean tech, at PwC said: “2014 has been another strong year for investment in the renewable energy sector, bringing the total investment since 2010 to £40bn. The majority of investment during 2014 was in renewable electricity generation, attracting almost £10bn of capital, with solar the big winner, representing £4.5bn of investment.

“However, reaching the 2020 targets is estimated to require a further £50bn of investment. The sector will be looking to the new Secretary of State to provide the investor certainty through to the end of the decade and beyond, both in terms of funding and technology preferences.

"The results for investment in heat and transport are less encouraging. If the historical investment trend continues renewable heat will miss its 2020 sub sector target, and renewable transport fuels will remain reliant on lower cost imported biofuels. It is time for a policy rethink on transport fuels if the targets are to be achieved. Otherwise even greater investment will be required in renewable electricity to make up for any shortfall.”

John Sharp, Director of Innovas, said:

"The economic growth of renewable energy is highest in those sectors which received the greatest government support – namely biomass, wind and solar technologies. Though the capacity of solar PV in particular saw a high level of increase, the decrease in equipment cost and higher efficiencies through large scale deployment meant that the overall market value did not increase at the same rate as capacity.

“The forecast growth to 2020 with the current incentive and support schemes for the renewable energy sector as a whole is about 48% adding a further £7 billion to the market value with a total of £22 billion forecast. This would equate to about a further 27,000 more people employed by 2020. This is far in excess of what is forecast for the economy as a whole. However this level of growth could be jeopardised if changes to the support are made which creates instability in the market."