The energy advisors at Labour caution against diluting the £28 billion investment in green initiatives.
The party has been cautioned by independent energy advisors about diluting their £28 billion green expenditure proposal ahead of their pledge to achieve a zero carbon electricity system by 2030.
According to the climate research organization Ember, who conducted an unbiased analysis supporting Labour’s environmental goals, the UK may fall behind in the worldwide pursuit of low-carbon energy due to increasing competition from the US and EU for investments in this sector.
According to the research, it is possible for Labour’s plans to reduce the UK’s dependence on gas power plants, which accounted for over 30% of the country’s electricity last year, to be implemented within the next ten years. However, the analysts at the thinktank warned that scaling back on spending would lead Britain in the opposite direction.
By 2030, significant funding would be necessary to develop a sustainable energy infrastructure. The proposed approach involves allocating 70% of the electricity mix to wind and solar sources, with the remaining 30% being supplied by a combination of alternative low-carbon sources such as new nuclear plants, other renewable options, and hydrogen.
Harriet Fox, an analyst at Ember specializing in energy and climate, stated: “I believe it is not advisable to decrease investment at this time when the rest of the globe is ramping up. This is a completely misguided move. As the US and EU compete for the interest of renewable energy corporations, the UK should not be left behind.”
The Labour party has raised concerns about its goal to eliminate almost all carbon emissions from the UK’s electricity grid by the end of the 2020s, which is five years earlier than the government’s current plans. This is due to the acknowledgement that financial constraints on public spending may lead to the possibility of not being able to fulfill their initial promise of £28 billion.
Party insiders have stated that the proposed expenditure goal was intended to go beyond simply achieving a near-zero carbon power system by 2030. Instead, it aims to create green jobs within the country and support local supply chain businesses.
According to one source, the 2030 goal can be reached with reduced government expenditures by revamping the UK’s regulatory and planning systems to facilitate greater involvement from private sector investments.
The UK’s efforts to reach its green energy goals are hindered by major obstacles in the country’s planning process, causing delays in connecting green projects to the power grid.
Last year, the Labour Party accused the government of causing an “energy security disaster” when they were unable to attract new investors for a major offshore wind subsidy auction.
Investments in big green energy projects and grid infrastructure are expected to lower household energy bills in the long term by making cheap renewable energy more available. Research by Ember found households could save £300 a year on energy bills by 2030 by running a 98% zero carbon electricity grid.
According to Fox, the current investment made by the government will have future payoffs. This will be reflected in reduced energy costs as our energy system becomes more environmentally friendly. Therefore, investing now will only bring positive results in the future.