2. Renewables
Triple renewable power from wind and solar by 2030
The next decade is critical for extending UK carbon reductions across every sector of the economy. This needs to be driven by the electricity sector, which needs to almost totally decarbonise. The only cost-effective and actually deliverable way to do this is to roll out renewables – in particular wind and solar – so that nearly 80% of our power is generated from renewables by 2030.
Overarching measures
• Release funds more frequently and in larger amounts from the £557m pot already committed for Contracts for Difference (CfD), to enable renewables expansion on the scale required
• Apply the polluter pays principle and make users pay for the CO2 they put into our atmosphere by raising the carbon floor price in the power sector from £18/tonne CO2. The existing policy of raising the price to £70/tonne CO2 in 2030 should be implemented as far as is required to decarbonise the power sector. The money raised must be channelled into reducing the impact of the price rises on the less well off, for example delivering home energy efficiency
• Establish a long term policy framework for renewables as they move towards delivering 100% of the UK’s power needs, guaranteeing stable revenue, even when below market price
• Create a demonstrator pathway for tidal, wave, geothermal and other forms of renewables which have the ability to head down the cost curve with greater deployment
• Ofgem should abandon the Targeted Charging Review of network costs, which loads more costs onto renewable power and does not fully value local and community energy
• Ofgem should be given an overall mandate to speed the transition to a net zero carbon economy
Offshore wind
• Set a target for at least 45GW by 2030
• Create a commercialisation pathway (through innovation funding and Government financial support) for floating offshore wind, which will significantly enlarge capacity and lower biodiversity impacts
• Provide public support and investment into key parts of the supply chain (e.g. docks and fabrication yards), to enable more rapid deployment and increase local content
• Conduct strategic assessments relating to environmental impacts (to minimise biodiversity impacts), and the potential for shared offshore grid connections to land. Strategic development of offshore connections to lower costs of power transmission could save up to €40bn if offshore wind is developed at scale
• The Crown Estate should make more seabed available for offshore wind development, ahead of other uses such as aggregates, fishing and oil and gas exploration/ extraction (which should in any case be phased out)
Solar
• Set a target for at least 40GW by 2030
• Mandate a floor price for the new export guarantee for solar, equivalent to or greater than the average annual spill price paid to large generators. The original export guarantee and Feed In Tariff scheme should also run until the new scheme begins
• Remove unfair business rates tax treatment on solar
• Implement the provisions the UK has agreed to in the EU 2030 package on protecting the rights of citizens to become producers of power
Onshore wind
• Set a target for at least 30GW by 2030
• Reform planning guidance for local authorities to clarify that objections from a minority of people should not be given undue weight in planning decisions
• Allow onshore wind to bid for contracts for power delivery at least cost