Chris Goggin of Rinnai examines the new National Research Institute report on the 2035 decarbonisation target.
A new report from the National Audit Office, the independent parliamentary body responsible for auditing government spending, has warned that the lack of a clear future plan to decarbonise gas use could lead to a lack of funding in existing energy services. white in the future and therefore causes an increase. and energy bills for all UK customers.
The report was mentioned in the national media saying that: "There is no clear plan and the idea that there may be changes in government policies that may prevent outside investors from financing new infrastructure or make them increase their required rate of return. , ultimately increasing the cost to consumers".
A key part of the UK's decarbonisation plan is to produce all electricity from carbon-reducing sources by 2035. However, 40% of electricity still comes from gas. It is expected that 2035 will see a 60% increase in electricity as it is expected that electricity will be used to replace fossil fuels and other fuels for clean gas.
Speaking to national media, Gareth Davies, head of the NAO, added: “It's understandable that [the government] has focused on dealing with the immediate energy crisis over the last 12 months. But one consequence of this is that it does not have a delivery plan to eliminate electricity by 2035, which is the backbone of its zero-emissions target.
He added that the longer it takes to develop a plan, "the more likely it will not achieve its goals, or do so at a higher cost to taxpayers and consumers." more than necessary".
It is estimated that between £280 and £400 billion of money is needed to decarbonize the electricity sector, not including research and new technologies and creating new networks.
A clear, centralized plan that is understood and supported by energy distributors and customers can accelerate progress, attract savings and save customers money in the future. Currently, the UK is not as good an investment opportunity as America. In order to improve the foreign investment profile of clean energy projects in the UK, it is expected to create and introduce provisions in line with the US Cost Reduction Act in the near future.
The Cut Inflation Act means that clean energy projects will be paid for through tax credits of up to 30% to 70% of the investment cost. The NAO has expressed concern about the lack of work to attract future investors to the UK's clean electricity future. Without widespread national and international funding, the UK's goal of producing 100% clean electricity by 2035 is far from over.
MP Meg Hillier, chair of the Public Accounts Committee, was quoted in The Guardian as saying: "The Department of Energy Security and Net Zero [DESNZ] does not have a delivery plan for the decarbonisation of electricity. Although DESNZ is focused on understandably with his immediate response to the energy crisis, I was frustrated that his progress was slow and uninteresting for so long. Without a delivery plan, it is difficult to know whether DESNZ's objectives will be met.
A DESNZ spokesperson was quoted in the same article as saying: “Since the energy crisis caused by the war in the Ukraine our focus has been on delivering essential cost of living support, including paying half a typical household’s energy bills this winter, because this is the primary focus for families across the country.
“At the same time, the UK is decarbonising faster than any other G7 country … Our targets are ambitious; however we haven’t taken our foot off the pedal and our commitment to decarbonise the UK’s electricity system by 2035 remains resolute.”
