Ofgem net zero mandate is the common sense decision

Laith Whitwham, Senior Policy Officer at the Aldersgate Group, said: “This decision is a common-sense one from government. Allowing Ofgem to make decisions based on long-term savings and emissions reductions will enable the UK’s clean energy sector to make early investment in low carbon generation and grid infrastructure, and clear current bottlenecks in the system. Too many renewables projects are delayed due to difficulties connecting to the grid. As renewables are the cheapest form of energy generation, this decision will encourage network upgrades that will bring projects online sooner, help to lower emissions and cut bills for households and businesses.”

“This amendment should be accompanied by ambitious policy support for the rapid expansion of the UK’s clean energy sectors. In light of the US’s Inflation Reduction Act, the Government should focus on improving the attractiveness of the UK as a place to invest. This means changing capital allowances on a more permanent basis, and providing the policy certainty required to stimulate new private investment. Alongside these measures, a simplified planning process and new ‘queue management’ rules are also needed to speed up the time it takes for renewable generators to build new projects and connect them to the grid.”

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In May 2023, the Aldersgate Group and UCL published a report detailing the steps that are needed to decarbonise the UK’s power sector. By taking ambitious steps to support the growth of clean energy in the UK now, the Government can improve the UK’s energy security, create jobs and bring down bills.