The Association for Renewable Energy and Clean Technology (REA) has launched its vision for the next government’s first 100 days in office.
The next administration will decide whether the UK meets its net zero targets, and the REA is demanding “clarity, ambition and action to hit the ground running”.
On power and flexibility the REA is calling for a fully decarbonised, secure, and affordable electricity system by 2032 and has outlined several steps the next government will need to take to achieve this.
The first is to complete the establishment of the National Energy System Operator (NESO), to provide independent advice on delivering an energy system that is fit for the future.
The NESO should be fully established by the end of 2024 and the new government should ensure the NESO has full independence, and adequate funding, enabling it to get on with designing a decarbonised energy system that meets future demand.
The second step is to turbocharge work streams to address grid capacity constraints and order an annual Parliamentary progress report.
Since the biggest barrier to delivering new generation is the time needed to connect to the grid, the government should task the National Infrastructure Commission, Ofgem, or a similar body with compiling an annual progress report on connection reforms for Parliament and requiring a government response.
The third is to finalise options within Review of Electricity Market Arrangements to create a secure, affordable and decarbonised energy market.
The ongoing Review of Electricity Market Arrangements (REMA) must be concluded, following the industry consultation on a range of options, in 2024 to ensure sector confidence and put the market on a sensible timetable for implementation.
The fourth is to establish a rolling timetable and budget for Contract for Difference (CfD) allocation rounds to secure new investment in large scale renewables.
To build investor confidence the next government should quickly establish a rolling three-year-ahead timetable for new CfD allocation rounds which deliver affordable contracts for renewable generation.
The allocation rounds should include a minimum budget, ring-fenced funding for new technologies such as geothermal and a separate auction to re-power existing assets.
The fifth is to provide bespoke capital allowances to incentivise renewable investment, which should be delivered in the first fiscal event of the new government.
The sixth is to implement a “cap-and-floor” mechanism for long duration energy storage.
The next government must honour commitments to implement a support mechanism for critical long duration energy storage technologies this year.
The seventh is to deliver pathways for the deployment of bioenergy carbon capture and storage (BECCS) to deliver critical negative emissions by 2030.
The eighth is to reform planning guidance by 2025 to prioritise renewable deployment, to halve the time taken for planning decisions on renewable assets.
The final one is to reinvigorate financial incentives to encourage green technology adoption, including reforming the Smart Export Guarantee (SEG) and provide interest free loans to install onsite renewables, clean technologies and energy efficiency measures.