How to ensure that the clean power target enables decarbonisation of heat and transport while avoiding lock-in with high electricity prices.
Decarbonising the economy is a central priority for the new Labour Government, which has adopted a mission-driven approach to deliver Clear Power by 2030. While this is a world-leading objective there is a substantial risk that it could put the UK on a high-cost transition path that could slow down the decarbonisation of heat and transport.
In fact, unless renewables are prioritised, choosing the wrong path to Clean Power by 2030 target could lock in high electricity prices for the long term.
As a result, there is a risk that the decarbonisation of heat and transport – which account for a much larger share of emissions than power – could slow down as electrification via heat pumps and electric vehicles could become more expensive.
Therefore the government should select Clean Power pathways that:
- Maximise renewables and avoid lock-in with fossil fuels,
- Prioritise electricity price reductions to enable faster electrification,
- Deliver energy security relying on futureproof, low-carbon technologies instead of gas plants with CCS.
Choosing the wrong path could extend the UK’s dependence on fossil fuels and leave electricity prices vulnerable to future supply and price shocks. In conclusion, achieving the Clean Power by 2030 target without reducing electricity prices would be counterproductive for the transition to net zero increasing the decarbonisation costs for heat and transport.
