Wind farm and solar panels

Labour’s Energy Policy: Seven things we now know

By Clare Dobson, Senior Policy Consultant

At this week’s Labour Party Conference energy events dominated the fringe as well as the Conference Hall.

Twelve weeks into the Labour Government, clean energy is easily the most well-developed policy area. Clare Dobson, Cardew Group’s Senior Policy Consultant sets out what we know so far: 

1. Ed Miliband is a man on a mission with strong backing from the Prime Minister and the Chancellor. They are hoping his stimulation of the energy market and the creation of green jobs will act as an engine of growth and as an investment attractor.

2. The policy landscape is already transformed with three large solar projects consented, the onshore wind moratorium lifted, Great British Energy established and a record 131 clean energy projects approved for Contracts for Difference funding; in total a huge potential pipeline of renewable energy.

3. The energy system will be more strategically planned to help the UK meet the Clean Power by 2030 and the 2050 Net Zero goals.  The National Energy System Operator has been commissioned to develop a plan to achieve this and in an open letter, Ofgem has indicated that they will align the connections regime to the NESO plan.

4. The jury is still out on whether Clean Power by 2030 is achievable. One key sticking point is gas fired electricity generation which currently accounts for around 35 % of total generation and is used as back up when the wind doesn’t blow. Reducing its contribution down to near 0 in 6 years remains a tall order.

5. With the public purse stretched for cash, effective public-private partnerships to secure funding streams for projects will be key to the success of Great British Energy. We can expect an intensification of stakeholder consultation and engagement on this.

6. The Warm Homes Plan is still in play – the manifesto commitment was to insulate 5 million homes in 5 years. The guidance for Warm Homes : Local Grants is out, with significant implications and opportunities for Local Authorities, supply chains, installers and consumers. We can expect details on the total funding pot in the autumn budget on 30 October.

7. So far the emphasis has been on build, build, build in a bid to meet the surge in electricity demand needed as gas and oil are phased out. But expect a change in emphasis towards reducing energy demand through more energy efficiency and accessible flexibility; reforming energy market arrangements to fully incentivise the transition; decarbonising the gas grid and deploying hydrogen and CCUS. On all of these areas - and more - Ed Miliband and his team will need to set out the position and engage with us all to deliver the pathway to 2050.

If you would like to discuss what this means for your organisation do get in touch.