The UK energy sector is committing to investing in and delivering a net zero power system in the 2030s.
The sector, which has led the way in reducing the UK’s carbon emissions, made its pledge in a new report “Towards Net Zero emissions: the energy industry’s commitment to the climate, customers and jobs”.
In the publication, Energy UK’s members state their commitment to continuing the transformation towards a system powered by clean energy, while keeping bills down for customers and maintaining security of supply.
In order to achieve this aim, the industry believes that there should be no further investment in new, unabated gas generation without clear plans to access carbon capture and storage technologies or use low or zero carbon gas, said the report.
The report also stated that keeping pace with this ambition will depend on Government action and policies to deliver on the most ambitious emissions reduction targets of any major economy, from ensuring costs are spread fairly across the population to unlocking the billions of pounds investment needed to fund this transformation.
“Massively increasing the supply of low carbon electricity and growing the supply of hydrogen will be crucial to delivering net zero by enabling other sectors to follow the energy industry’s lead through decarbonising our homes, our transport system, industry and the wider economy,” stated Energy UK.
It added that the current turbulence in the energy market underlines the need to reduce our dependence on imported gas and move to a system powered by a diverse range of low carbon generation, storage and other technologies with renewables providing the lion’s share.
In order to help deliver on this commitment, the energy industry is calling for: a new Energy Bill, given the scale of action required across policy and regulation; market frameworks to support low carbon technologies like annual Contracts for Difference auctions; linking the UK Emission Trading System (ETS) to the EU ETS; final investment decisions on new nuclear; a reduction in planning and infrastructure barriers; and comprehensive system and market reform.
Energy UK chief executive Emma Pinchbeck said: “The current challenges facing the energy sector, and the wider economy, only emphasise the need to accelerate our journey to a future where we won’t be at the mercy of volatile fossil fuel prices.
“As this report shows, the energy sector is fully committed to meeting that challenge. Over the last few years, the industry has shown that with the right policies in place, change can happen quicker – and at less cost – than anyone thought possible.”