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The UK power sector

It’s decision time for UK energy policy. With almost a quarter of our power stations to be closed in the coming decade, and a legal obligation to meet our carbon targets set out in the Climate Change Act, we have to find a reliable and environmentally sustainable way to produce electricity.

To address this, the UK government has initiated the most far-reaching reform of the electricity market since its privatisation. This will result in a new energy bill due will reach parliament in spring 2012.

It’s essential that the government gets this reform right. The wrong choices could mean we’ll be locked into too much high-carbon fossil fuel power generation capacity or greater dependence on expensive and risky nuclear power.

There is a viable alternative. The UK is sitting on a goldmine of inexhaustible renewable energy resources - the potential is far greater than our demand for electricity. 

With systematic investment in renewables, we can decarbonise the power sector without resorting to new nuclear, avoiding the risk of the ‘lights going out’.

Harnessing the UK’s vast renewable energy resources will also benefit our economy. Appropriate support for renewables would attract supply chain investment to the UK with substantial job creation benefits just like it has done in other countries.

Investing in renewables can also help reduce the volatility of consumer bills, by better insulating UK electricity prices against fossil fuel price fluctuations, which were the main driver behind the 63% increase in UK domestic electricity prices since 2004.  

Our report, Positive Energy: how renewable electricity can transform the UK by 2030, discusses in detail how this can become a reality.

Developing a low-carbon and sustainable power sector in the UK is first and foremost a question of political will.

We are working to make renewables a reality. We are lobbying the UK government to introduce stable financial support mechanisms specifically designed for renewables and a target to generate at least 60% of the UK's demand for electricity from renewable energy by 2030.

Targeted policies will help provide certainty for investors - stimulating investment in renewable energy technologies. This, plus economies of scale and more competition, will drive down costs. It will also stimulate new jobs in the UK renewables industry.

We’re also working with forward-looking industry and businesses to help create a competitive market that encourages renewables. If your business would like to be involved in our work, please contact our Head of Energy Policy, Nick Molho.

You can:

Read Positive Energy: how renewable electricity can transform the UK by 2030

• More climate and energy publications

Working with business

We're looking for businesses interested in our vision of a renewable future. Please contact our Head of Energy Policy, Nick Molho

Related links:

• 10 reasons for EU to be more ambitious on climate
• Our sustainable homes campaign
• Our response to the government's Energy White Paper

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