The Tony Blair Institute has recommended that the UK government reforms its Clean Power 2030 targets amid rising costs of electrification.
The political think tank proposes the ambition should be reframed as “Cheaper Power 2030, Net Zero 2050”, with a new strategy focused on “cheaper, abundant electricity as the foundation for growth and energy security”.
It advocates a “more pragmatic path” to decarbonisation with several recommendations including pursuing the “least-cost pathways” for clean energy build out, introducing more “localised and temporal market signals” instead of centralised system planning, accelerating “radical” planning reform, using AI to unlock grid efficiencies and making gas-fired generation cheaper by removing carbon taxes until 2030.
“The UK’s current energy strategy risks getting the balance wrong,” the Institute stated.
“If the transition continues in a way that raises costs, weakens reliability and undermines growth, it will fail both politically and practically.
“That failure would erode public support at home, damage Britain’s credibility abroad and hand momentum to opponents of climate action.”
A position paper urges the government to refocus its efforts on reducing the cost of electricity in a renewables-based system and creating the conditions for the full electrification of the economy in a way that makes clean power “the obvious alternative to fossil fuels for households, transport and industry”.
“Doing so requires reform of the Clean Power 2030 mission,” the think tank added.
“Launched in the middle of the gas crisis and in a low-interest environment, it was right for its time, but circumstances have changed.
“The UK now needs more than a decarbonisation plan. It needs a full-spectrum energy strategy built on growth, resilience and abundant clean electricity.
“This means prioritising cost, flexibility and long-term stability – the real building blocks of electrification – not just short-term emissions cuts.”
Responding to the study, as well as recent media reports that the UK government is considering watering down its commitment to Clean Power 2030, trade group Solar Energy UK’s chief executive Chris Hewett said: “We all know that electricity bills must come down.
“Rapid deployment of the cheapest form of electricity generation – solar – is an obvious part of delivering the clean, secure and low-cost power we need.
“Rather than restarting a now settled debate on zonal pricing, we would recommend prioritising the widespread adoption of flexible tariffs, rooftop solar power and domestic battery energy storage would drive down costs – alongside reform of the electricity market.
“We are in discussions with Government on how to deliver these goals.”