‘Kick polluting fossil fuels off the energy grid’: UK businesses call for 2035 net zero power target
BT, Thames Water, Co-op, WSP and Nestlé UK among 13 firms demanding government target fully decarbonised grid, as gas supply issues send power prices soaring
BT, Thames Water, Co-op, and Nestlé UK & Ireland are among a raft of companies that have called on the government to phase out gas power by 2035 this morning, as surging gas prices in the UK continue to lay bare the risks of relying on fossil fuel imports for electricity.
In a letter sent to Business Secretary Kwasi Kwarteng this morning, the companies told ministers it was time for the UK to “signal an end to the use of unabated fossil fuels in the power sector” by committing to net zero energy system within 15 years.
“This decision will raise confidence in the government’s net zero vision for the UK in the crucial years ahead, ensuring that every pound invested in the country’s electricity sector contributes to building a low-cost, sustainable, and resilient energy system based on renewable technologies,” the letter states.
The letter argues setting a grid decarbonisation target would allow the UK to lay claim to yet another “historic” decarbonisation first, after being the first country to legislate for an end to coal power and the first major economy to legislate for net zero emissions.
“As we approach COP26, it’s important for the UK to show leadership through a commitment to decarbonise the UK power sector by 2035,” said Emma Keller, head of sustainability at Nestlé UK and Ireland. “At Nestlé we are committed to generating our own electricity from clean sources in one of the important steps we are taking to tackle climate change.”
While noting that delivering fully decarbonised electricity will be “challenging” and require record levels of investment, the firms said they were confident the target would be feasible if government and businesses worked togehter.
“We stand ready to play our part in delivering fully decarbonised electricity by 2035,” the letter states. “Meeting this target will be challenging, requiring new investments in renewable energy of up to £14bn each year – a significantly greater level of investment than has been possible to date. However, with a commitment from the government to deliver a fully decarbonised power system by 2035, we are confident this ambition can be achieved.”
The call to action, which has also been backed by WSP, Wilmott Dixon, Triodos Bank and Anglian Water, comes as the country grapples with a major energy crisis caused in large part to a domestic fossil gas shortage and the soaring costs of fuel imports. Millions of households across the UK have faced record energy bills this week after the cost of gas hit new highs.
While major strides have been made in the decarbonisation of Britain’s electricity system over the past decade, gas-fired plants continue to be a major component of the grid. On Friday morning, gas plants provided roughly 30 per cent of the Britain’s power generation, with wind power the only technology to generate more generation, according to National Grid ESO data.
The letter came alongside separate new polling data released today by energy think tank Ember, which indicates two-thirds of British adults would also support the government establishing a net zero electricity target by 2035.
A survey of nearly 1,700 adults run by YouGov for the think tank found that 37 per cent of respondents said they would “strongly support” the government establishing a target of moving to 100 per cent electricity within 15 years, with a further 29 per cent of respondents reporting that they “tend to support” the idea. Just 11 per cent of participants said they opposed the idea.
Ember also today published a report that points out modelling developed by three independent bodies in the UK – the Climate Change Committee, National Grid ESO and the Energy Systems Catapult – all shows that meeting UK climate goals relies on a phase out of unabated coal power by 2035.
The UK could also significantly reduce its electricity costs by reducing its exposure to global energy markets and ramping up reserves of “homegrown” renewable energy, according to the report. It calculates that generating electricity from existing UK fossil gas power plants is now three times more expensive from new onshore wind and almost twice as expensive as new solar.
“Our reliance on gas power is pushing up bills, destabilising our economy and driving run-away climate change,” said Caterina Brandmayr, head of climate policy at environmental think tank Green Alliance. “Ahead of COP26, the British public and business are calling on the UK government to announce plans to clean up our power sector by 2035 and kick polluting fossil fuels off the energy grid.”
Also commenting on the report, Conservative MP Anthony Browne, chair of the All Party Parliamentary Group (APPG) for the Environment, noted that surging gas prices would present a “challenge” over the coming months. “Committing to phasing out gas by 2035 will show global climate leadership, while investing in low carbon technologies is the best and most cost-effective way to ensure a crisis like this doesn’t happen again,” he said.
Ember’s conclusions echo those of the International Energy Agency, which has also warned that advanced economies should target net zero electricity by 2035 if dangerous levels of global temperature rise are to be avoided.
In the US, meanwhile, President Joe Biden has pledged to decarbonise the North American nation’s power system by that date, although analysts earlier this week raised doubts about how achievable the goal will be.
The Department for Business, Energy and Industrial Strategy was considering a request for comment at the time of going to press, however observers have noted that the UK’s climate goal to slash emissions by 78 per cent by 2035 depends on the full decarbonisation of the electricity grid.
In related news, The Times reported this morning that the government is in talks with US nuclear reactor company Westinghouse about a new power plant in Anglesey, Wales.
Should the project get the go-ahead, the new nuclear plant would be able to generate enough electricity to power more than six million homes once operational in the mid-2030s, according to the newspaper.
