It’s technically possible for the UK to achieve its goal of having a clean power system by 2030, and doing so should reduce electricity bills and bolster the country’s energy security, the grid operator says in a study commissioned by the new Labour government.
The context: The UK recently shut its last coal-fired power plant and aims to slash its use of gas turbines as it seeks to all but eliminate fossil fuels from its electricity mix by the end of the decade.
In 2023, renewables and nuclear accounted for 62% of the country’s electrical output, while fossil fuels held a 38% share. Under the 2030 clean power target, fossil fuels (gas) would be reduced to less than 5% of the mix.
The latest: “The analysis concludes that clean power is a huge challenge but is achievable for Great Britain by 2030,” the National Energy System Operator said in a statement as it published the study.
Overall system costs are unlikely to increase if the target is met, and tariffs could in fact decline as legacy power contracts expire and if the state makes sufficient progress on energy efficiency gains, flexibility mechanisms, improving grid connection processes, and overall policy modernisation.
Significant investments are required in a short amount of time, but they would allow the UK to become a “leader” in new technologies while also reducing the country’s exposure to potential energy price shocks stemming from spikes in international gas prices, as was the case after Russia invaded Ukraine.
NESO’s analysis shows that clean technologies — renewables and nuclear — will be able to produce at least as much power as Great Britain consumes in total in 2030.
And moving to a clean power system won’t affect the reliability of the grid, the operator says.
“There’s no doubt that the challenges ahead on the journey to delivering clean power are great,” says NESO chief executive Fintan Slye. “However, if the scale of those challenges is matched with the bold, sustained actions that are outlined in this report, the benefits delivered could be even greater.
“A clean power system for Great Britain will deliver a backbone of home-grown energy that breaks the link between volatile international gas prices; that is secure and affordably powers our homes and buildings; that decarbonises the transport that we take to school and work; that drives the businesses of today and catalyses the innovations of the future.”
Here’s what NESO says must happen to achieve clean power by 2030:
- Harness the value of flexibility for households, businesses, suppliers and aggregators by unlocking markets, promoting engagement and removing wider barriers.
- Consolidate isolated and siloed digitalisation initiatives into a unified sector-wide prioritised plan, with expedited data sharing and enhanced decision-making driven through rapid adoption of artificial intelligence.
- Contract as much offshore wind capacity in the coming one to two years as in the last six combined.
- Deliver first-of-a-kind clean dispatchable technologies, such as carbon capture and storage and hydrogen to power.
- Build all planned transmission network on time, which involves twice as much in the next five years as was built in total over the past decade.
- Reform connection processes in 2025 to align with the clean power goal and future strategic plans.
- Reform planning and consenting processes and improve community engagement. Key decisions on funding, awarding contracts, consenting and policy are needed within the next year to ensure construction on key projects starts as soon as possible.
- Reform electricity markets while ensuring a stable and attractive investment environment, to secure over £40 billion of investment annually to 2030.
Next steps: The government will now consider NESO’s advice as it develops its clean power action plan later this year.
