The Labour government is pressing on with its mission to reach 95% clean power by 2030, believing it will lower bills.
The Liberal Democrats and the Green Party also support the dash for clean power, with the former setting out plans to change how renewable projects are paid for, and the latter calling for higher taxes on oil and gas companies.
But the Conservatives and Reform have taken critical stances on renewables, both prioritising cost-cutting, fossil fuels, and reversing climate commitments, albeit with different proposals.
If energy costs soar this year, Energy Secretary Miliband could come under pressure to push back the government’s 2030 clean power target.
As the Economist recently argued, external, that could mean a more gradual build-out of renewable power, allowing more time to invest in cheaper onshore wind and reform the electricity market.
The Tony Blair Institute has also expressed scepticism about the clean-power mission, suggesting expensive grid buildout should be minimised by placing electricity supply closer to demand.
In a paper published this week, external, the think tank called for a review of grid plans to “identify cost efficiencies” and the approval of oil and gas projects in the North Sea to boost the UK government’s tax intake.
With a backlog of wind farms waiting for connections, though, a lot of these network costs are already baked in.
“Inflation means that investing in our energy networks will cost more, whatever energy we use,” said Susie Elks, senior policy adviser at the E3G think tank.
She argues the faster we hook up a bigger supply of clean energy to the grid, the better.
That’s because in Britain, when there isn’t enough renewable power to meet demand, the grid often uses gas-generated electricity, which can be more expensive, especially during global energy shocks.
“The government needs to get renewable energy to people’s homes so they can be protected from big spikes in the gas and oil price,” Elks said.
In the long term, the march towards renewables is expected to reduce our energy bills eventually.
Analysis by the National Energy System Operator, external suggests Britain’s energy costs could drop from about 10% of national income in 2025 to about 5-6% by 2050.
But with costly grid upgrades needed to realise uncertain future savings, the path to 2050 could be an expensive one.
That’s awkward for a Labour government that’s made reducing the cost of living right now its top priority, and any party that wishes to be in power during the next few decades.
