- The UK government is set to reform planning and grid connection rules to attract £40 billion in investments and phase out fossil fuels from electricity generation by 2030.
- The UK aims to triple offshore wind capacity to 50 gigawatts by 2030, with new auctions planned to attract more investment and reduce household energy bills.
The UK government is set to reform its planning and power grid connection rules to attract up to £40 billion of investment annually through 2030, aiming to eliminate fossil fuels from electricity generation. The Friday, December 13, 2024 announcement outlines detailed plans to phase out natural gas from the UK’s electricity mix over the next six years as part of Prime Minister Keir Starmer’s strategy to decarbonise the energy sector, promote economic growth, and reduce energy costs.
The move comes amid a record surge in electricity generation from natural gas power stations triggered by a lack of wind across Europe. Despite the government’s ambitious goals, the UK will still require substantial on-demand power, mostly from natural gas stations, to ensure reliable electricity supply during windless periods. The UK defines a clean power system as one where fossil fuel plants operate for less than 5% of the time each year.
The government is betting that reducing the reliance on gas, with its price volatility, will help shield consumers from the high bills that have contributed to the ongoing cost-of-living crisis. Energy Secretary Ed Miliband emphasised that the UK’s clean energy transition aims to protect consumers from global energy market fluctuations. “The era of clean electricity is about harnessing the power of Britain’s natural resources to protect working people,” Miliband said in a statement.
While the government had previously promised to reduce household energy bills significantly, it appeared to backtrack on this goal. In its pre-election manifesto, Labour had pledged to “save families hundreds of pounds on their bills” in the long term. On Friday,13th December, 2024, the government stated it would provide “the foundation to build an energy system that can bring down bills for households and businesses for good.” However, Miliband reaffirmed the promise, explaining that renewables are cheaper to operate than gas-fired stations and will ultimately lead to lower energy bills.
To accelerate the transition to clean power, the UK will prioritise grid connections for projects best suited to meet the 2030 goal. This includes faster planning and approval processes for new transmission and distribution lines. Offshore wind is a key component of the plan, with the government aiming to expand capacity to 50 gigawatts by 2030, which will be more than triple the current level. The government plans to contract at least 12 gigawatts of offshore wind capacity in the following two to three auctions, offering long-term government-backed contracts to developers.
Next year, the government will consult on reforms to these auctions to attract more capacity, including extending contract lengths and easing participation requirements.