It was no surprise that the UK woke up on Friday morning to a new Labour government. Nonetheless, the result was a welcome fillip to the renewables industry, ushering in an administration that’s predicted to be considerably more sympathetic to the net zero cause than its predecessor.
Despite this, the Labour Party caused consternation when it rowed back its climate funding pledges in early February this year, roughly halving the £28 billion investment that had been mooted for green investment.
This, however, was swiftly followed in mid-February by a renewed commitment to the 2030 ZEV targets that had been pushed to 2035 by Sunak’s Conservative government. That commitment requires that 80% of new cars and 70% of new vans sold in Great Britain be zero-emission vehicles by 2030, increasing to 100% by 2035.
Then, at the end of March, Labour followed up with a pledge to ensure that the UK would become a “world leader” in floating offshore wind technology, fast-tracking at least 5GW of capacity. In addition, the party aims to significantly increase the UK’s renewable energy capacity by 2030, increasing onshore wind capacity to 35GW, tripling solar PV to 50GW, and quadrupling offshore wind to 55GW.
So, what does the industry make of the new government’s manifesto promises and commitments? We gathered opinions from a variety of sources in the UK renewables space.
GB Energy
A key element of Labour’s manifesto is the creation of GB Energy, a publicly-owned renewable energy investment vehicle that’s slated to receive £8.3 billion in funding over the course of this parliament. GB Energy will not supply energy directly to households itself but will work with private sector entities to invest in emerging energy technologies to ensure their competitiveness with more mature energy generation methods. Those mature technologies include onshore wind, solar, hydrogen and nuclear.
Charles Hardcastle, head of energy & marine at commercial property consultant Carter Jonas, said: “Labour aims to use GB Energy in co-developing projects, especially from novel technologies such as wave, and procuring the required electrical infrastructure. In both cases, it will be interesting to see how much of a splash they make in the market or if GB Energy stays as a fringe player.”
Les Roberts, energy expert at comparison site Bionic, added: “Sir Keir Starmer has set out plans to create ‘Great British Energy’, a publicly owned company aiming to deliver lower energy bills and energy security for British people. This policy also plans to reduce reliance on external parties when it comes to powering the country, potentially leading to more stable energy prices for households.”
Net zero
With Ed Miliband’s appointment as UK Energy Secretary and the creation of the new Labour Office for Net-Zero, the new government seems committed to addressing some of the shortcomings of the previous administration’s net zero policies.
“This result is a real opportunity for the UK to reclaim its leadership in the global race to net zero and demonstrates the strong appetite within the country for impactful climate policy,” said Stuart Lemmon, CEO of sustainability consultancy EcoAct.
“However, just as businesses are held to clear standards to develop specific and credible climate transition plans, the government must also progress from promises to providing a robust, actionable roadmap to make net zero possible by 2050.”
Mike Thornton, chief executive of Energy Saving Trust, commented: “The next five years will be pivotal for cutting energy bills and decarbonising our homes, businesses and communities. Following a period of uncertainty, it’s more important than ever that ambition urgently turns into action. The energy crisis and climate emergency haven’t gone away. New Ministers must translate their bold ambitions into detailed roadmaps to insulate more homes, roll out low-carbon heating and scale up renewable energy.”
Grid infrastructure
Labour’s plans to revolutionise the UK’s energy system may encounter significant roadblocks from current grid infrastructure constraints. The ‘First Ready, First Connected’ policy aims to do away with so-called ‘zombie projects’ that hold up projects further along in the queue when development falters.
Sarah Spencer, land manager of renewable energy developer Balance Power, had this to say: “A new government could mean a fresh approach to clean energy development. But if Labour is to fulfil its promise about transforming the energy system, it must take a long hard look at planning headaches and take bold action to purge planning inefficiencies. This has to be a top priority, otherwise the new government can bid farewell to its vision of a zero-carbon grid for 2030.”
Amir Cohen, CEO at Electrical Grid Monitoring, added: “Currently, fragmented planning and delayed permitting processes hinder renewable energy integration into the electricity grid. In addition to this, 20% of grid capacity is wasted due to overly cautious load limits and insufficient monitoring systems, all delaying the shift to cleaner energy.”
Electric vehicles
By committing to reinstating the 2030 ZEV targets that the Conservatives reneged on, Labour has set out its stall on electric vehicles. It promises to support the aggressive target of ensuring that 80% of new cars and 70% of new vans sold will be zero-emission by 2030, rising to 100% by 2035.
Reacting to the news, Matthew Lumsden, CEO of Connected Energy, said: “This election result could be a pivotal moment in history for the country’s automotive and energy industries if Labour can deliver on its promises. Rolling the net zero deadlines forward to achieve clean energy and mobility by 2030 is a hugely ambitious target that would see thousands of new jobs created along with a massive boost to the economy.”
“Labour’s intention is to promote a circular economy for critical minerals while strengthening the UK’s domestic battery manufacturing capabilities. Second-life EV batteries—repurposed into battery energy storage—should form a key part of this plan as they reduce our reliance on critical mineral imports while also creating the stability needed for an increasingly renewable electricity grid.”
Wind power
With both onshore and offshore floating wind power being a key tenet of Labour’s decarbonisation policy, Labour’s first course of action will be to reverse the onshore wind ban.
Charles Hardcastle, head of energy & marine at Carter Jonas said: “Labour has acknowledged that one of the blocks to onshore wind in England, unlike its neighbours across the borders in Scotland and Wales, remains the planning system. Labour’s aim of “doubling” onshore wind capacity by 2030 opens up an exciting number of opportunities which have previously been blocked.”
Heat
The energy crisis has caused UK households considerable hardship and continues to do so. Labour has committed to a strategy designed to drive down the price of electricity for UK homes, clamping down on heat-related emissions in the process.
The Association for Decentralised Energy’s chief executive, Caroline Bragg, said: “As we know, heating is one of the biggest sources of UK emissions. With the mandate now given to the new Labour Government, now is the time to move decisively towards a low-cost, just path for decarbonising heat. With decisive action and ambitious targets, we can create hundreds of thousands of jobs, drive economic growth and save the UK billions.”
Christophe Williams, CEO of energy sustainability company Naked Energy, added: “A positive step Labour could take would be to re-introduce the Renewable Heat Incentive for commerce and industry and make sure it stays in place. We should also introduce an advantage for local suppliers, much like the Inflation Reduction Act did in the US. Giving a 10% bonus on products designed or made in the UK would provide a huge boost for renewable energy.”
