Keir Starmer’s new government made big promises about energy during the election campaign and has already made several announcements this week. Sky News breaks down the key commitments and the challenges ahead.
Priority One: Boost Energy Independence and Cut Bills with Clean Power by 2030
The Labour government aims to make the UK’s electricity 100% clean by 2030. This ambitious goal, set by Energy Secretary Ed Miliband, involves moving away from foreign fossil fuels, reducing energy bills, and tackling the climate crisis all at once. Last year, the UK’s electricity was only 51% clean, so achieving this target will require significant effort, similar to an “Apollo moon mission,” according to Adam Bell, director of policy at Stonehaven.
The government has started planning reforms and lifted the ban on onshore wind. However, backing up renewable energy on less sunny or windy days remains a big challenge. Decisions on nuclear energy, carbon capture, storage, and hydrogen, which are all expensive, are still pending. Additionally, the UK’s aging energy grid and public acceptance of new infrastructure pose major hurdles.
A new “Mission Control” center will coordinate this work. Bell questions whether the government is organized enough to deliver on these promises.
Priority Two: Launch Great British Energy Company
Labour’s plan for a publicly-owned Great British Energy company resonated with voters. This company will likely invest in clean technology and fund small projects like school solar panels or community energy initiatives. Andy Garraway, climate policy lead at Risilience, sees potential for this company to save people money.
However, the funding has been reduced to £8.3 billion over the next parliament, far less than the initially promised £28 billion per year. Competing with the EU and US for private investment is another challenge. Clear, consistent policies are needed to give businesses confidence to invest.
Priority Three: Improve Home Energy Efficiency
Labour has pledged £6.6 billion to upgrade five million homes with insulation and solar panels to reduce energy demand and bills. Britain’s old, draughty, and mouldy housing stock needs these improvements. If successful, this could lower bills for those in fuel poverty.
However, the Warm Homes Plan’s funding is less than the initially promised £6 billion a year. Insulation is not a popular issue, but it is crucial for reducing energy costs and improving living conditions.
Priority Four: Reform the Energy System for Consumers
Labour promises to change how we pay for energy, allowing people to sell energy back to the grid and benefit from cheap energy during storms. They also aim to reduce standing charges on bills.
These changes sound appealing, but the electricity market is very complicated. Rebuilding it in a way that helps consumers without causing disruption is a significant challenge.
Priority Five: Create Jobs
Labour’s plans to end new fossil fuel projects in the North Sea could lead to job losses, with up to 200,000 jobs at risk. Bringing people along with the green transition and avoiding past mistakes, like the coal mine closures, is crucial.
Emma Pinchbeck, chief executive of Energy UK, emphasizes the need for local and visible benefits from the green transition to retain public support.
Priority Six: Lead on International Climate Action
Ed Miliband aims to restore the UK’s position as a global leader on climate action. He has been working on this even while in opposition, engaging with other countries at the COP28 climate summit in Dubai.
Delivering on domestic promises is crucial for the UK’s international credibility. Although the UK has reduced its emissions faster than any other rich country, it remains a top global emitter. Miliband’s leadership will depend on the UK’s achievements at home.
Despite acting quickly on onshore wind and pledging to end new North Sea licenses, Labour may need new policies by autumn to impress at the next UN COP summit in November.