Clean energy plan for work ‘huge task but achievable’, grid operator says

Britain must radically shake up the energy grid, build huge numbers of new utility poles and secure £40 billion of annual investment to achieve its clean energy targets by 2030, ministers have been told.

The National Energy System Operator (Neso) said that while Labour’s plan to decarbonise the grid by the end of the decade is a “huge task” it is “achievable”.

However, despite the obstacles, the government body has charted a path to decarbonizing the power grid by the end of the decade, which opponents say cannot be achieved without the risk of blackouts and rising bills.

Overall costs to consumers will not necessarily rise as a result of the policy, and bills may even fall in the long term as the grid becomes less dependent on international gas prices, said Neso, the body responsible for managing the grid.

But Labor will need to reform the planning system to ensure new poles, wind farms and solar farms are built quickly to meet the target, the report says.

More than twice as many transmission networks – towers, overhead cables and substations – need to be built as in the previous decade, he added.

The requirement, which covers more than 1,000 kilometers of power lines, will put ministers on a collision course with vocal lobbyists opposing poles in rural areas.

Energy Secretary Ed Miliband said the analysis was “compelling evidence” that Labour’s plan to make the UK a “clean energy superpower is the right choice”.

He said the government was “determined” to reform the planning system and grid to meet the target, which comes five years earlier than the previous 2035 target set by the Conservatives.

Neso also said the government would need to speed up the so-called grid queue, where green energy sources face years of delays in actually connecting to the grid.

The government body is consulting on replacing the current first-come, first-serve approach to network connections and will instead prioritize projects that are ready to go ahead.

Fintan Sly, chief executive of Neso, said: “There is no doubt that there are huge challenges ahead in achieving clean energy.

“However, if the scale of these challenges is matched by the bold and sustained action outlined in this report, the benefits could be even greater,” he added.

Mr Sligh said the plan could “create a domestic energy backbone that breaks the link between volatile international gas prices”.

Some UK nuclear power stations will also have to remain open longer than planned, the report said. Several sites in Thorness, Heysham and Hartlepool are currently due to close in 2028, but may have to continue operating.

The UK will also need to expand demand flexible services by around five times, where consumers and businesses are encouraged to save money by using less electricity at peak times to help reduce pressure on the network, the analysis found.

Neso is already ramping up its flexible consumer demand service this winter. In exchange for reducing energy consumption during peak hours, customers who sign up to the scheme and have smart meters can receive money from their accounts.

Greg Jackson, founder of Octopus Energy, the UK’s largest supplier of white goods, said: “It’s great to see that clean energy by 2030 is possible – and the best path will revolve around customers, not just infrastructure.”

John Pettigrew, chief executive of National Grid, the listed company that owns much of England’s energy infrastructure, added that the review was an “extremely useful milestone in providing clarity on the steps we, together with government, the regulator and industry, need to take.” . .

He called for a “relentless focus on meaningful and immediate reforms in which communication and planning will be critical to success.”

Alistair Phillips-Davies, chief executive of energy giant SSE, said: “Industry will invest the money it needs if regulators create an investment framework and the government provides supportive policies to help projects get off the ground.

“The faster we get there, the faster we can deliver the good jobs and energy security we all want to see; creating a strong domestic system that is affordable and protects families and businesses from future energy price shocks.”

Jonathan Brearley, chief executive of regulator Ofgem, said it was a “big step forward towards achieving clean energy by 2030”.

“We will carefully study the recommendations with the government,” he said.

“The best way to protect consumers is to end dependence on fossil fuels and achieve net-zero emissions, but Neso argues that tough trade-offs are necessary.”

The government will publish a so-called clean energy action plan in the coming months.