Quote:
Originally Posted by Glenn.
(Post 11645960)
Meanwhile Reform want to scrap any Net Zero commitments.
The party's position on energy and net zero contrasts starkly with that of the Labour government, which wants to remove nearly all fossil fuels from UK electricity production by 2030.
Labour is expanding renewable energy and said in its election manifesto it would invest £8.3bn in Great British Energy, a state-owned clean energy company, over five years.
Governments worldwide are investing in renewables to meet international climate targets and lower carbon emissions to "net zero" by 2050.
Electricity is increasingly generated from renewable energy in the UK, and the cost of renewable generation has significantly fallen in the past decade.
Labour promised to bring down household energy bills by "up to £300 by 2030" - and Energy Secretary Ed Miliband has stood by the pledge.
But UK energy bills went up in January, and are expected to rise again in April.
The main reason for high energy prices in the UK has been an increase in the price of gas, which has been the largest source of fuel for years.
With energy costs on the up, and President Donald Trump promising to drill for more fossil fuels in the US, Reform UK has turned its focus on the cost of renewables.
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Its pretty pointless expanding renewable energy when the price is linked to the gas price how mad is that, Octopus Energy, electricity 100 per cent green but prices through the roof because it is linked to the gas price, before they do anything else they need to extricate themselves from that deal
Why UK Electricity Prices Are Tied to Gas—and How Renewables Could Lower Your Bills
Despite the UK’s significant investment in renewable energy, electricity bills remain high. This paradox is largely due to the way electricity prices are determined in the UK market.
⚙️ The Role of Gas in Electricity Pricing
The UK employs a “marginal pricing” system for electricity. In this model, the price of electricity is set by the most expensive source needed to meet demand at any given time. Often, this is gas-fired power plants. Even if cheaper renewable sources like wind and solar are supplying a significant portion of electricity, the overall market price is influenced by the cost of gas. This system means that fluctuations in global gas prices directly impact UK electricity bills (The Guardian, Financial Times).
️ The Rise of Renewables
Renewable energy sources have been on the rise in the UK. Wind power, in particular, has become a major contributor to the energy mix. The cost of generating electricity from renewables has decreased significantly over the years. For instance, offshore wind prices have dropped from £114/MWh in 2016 to as low as £39.65/MWh in recent contracts.
Market Reforms for a Renewable Future
To fully benefit from the lower costs of renewable energy, experts suggest reforming the electricity market. One proposal is to shift from a national pricing system to a zonal one, where electricity prices reflect local supply and demand. This could lead to lower prices in regions abundant in renewable resources, like Scotland .
Additionally, integrating energy storage solutions and enhancing grid infrastructure would allow for better utilisation of renewable energy, reducing reliance on gas-fired power plants.
The Path Forward
Transitioning to a renewable-focused energy system requires policy changes and infrastructure investments.
By decoupling electricity prices from gas and embracing renewables, the UK can achieve more stable and potentially lower electricity bills, while also meeting its climate goals.
I love the word 'potentially' wouldn't want shareholders missing out now would we