Labour clean power plan ‘huge challenge but achievable’, says grid operator

Britain must radically shake up the power system, build vast amounts of new pylons and secure £40 billion of annual investment to hit its 2030 clean energy goals, ministers have been told.

The National Energy Systems Operator (Neso) said that while Labour’s plan to decarbonise the grid by the end of the decade is a “huge challenge” it is “achievable”.

Despite the hurdles, however, the public body set out a route to decarbonising the grid by the end of the decade, something opponents have said is impossible without risking blackouts and rising bills.

Overall costs to consumers will not necessarily rise as a result of the policy, and bills could even fall in the long run, as the power system becomes less exposed to international gas prices, said Neso, the body responsible for running the grid.

But Labour will need to reform the planning system to allow the swift building of new pylons, wind farms and solar plants to hit the target, it said.

More than twice as much transmission network – pylons, overhead power cables and substations – needs to be built than in the previous decade, it added.

The requirement, which equates to more than 1,000 kilometres of power lines, will set ministers on a collision course with vocal anti-pylon lobbyists in rural areas.

Energy Secretary Ed Miliband said the analysis is “conclusive proof” that Labour’s plan to make the UK a “clean energy superpower is the right choice”.

He said the Government is “determined” to carry out the reforms to the planning system and the grid to hit the target, which comes five years sooner than a previous 2035 target set by the Conservatives.

Neso also said the Government will need to speed up the so-called grid queue, where green energy sources face years-long delays to actually connect to the power network.

The public body is consulting on replacing the current “first come, first served” approach to grid connections, to instead prioritise projects which are ready to go ahead.

Fintan Slye, chief executive of Neso, said: “There’s no doubt that the challenges ahead on the journey to delivering clean power are great.

“However, if the scale of those challenges is matched with the bold, sustained actions that are outlined in this report, the benefits delivered could be even greater,” he added.

Mr Slye said the plan could “deliver a backbone of home-grown energy that breaks the link between volatile international gas prices”.

The report said some of the UK’s nuclear power stations will also need to stay open longer than planned. Several sites in Torness, Heysham and Hartlepool are currently due to close in 2028, but may need to continue operating.

The analysis found the UK would also need a roughly fivefold expansion of its demand flexibility service, where consumers and businesses are encouraged to save money by using less electricity during busy times to help reduce demands on the grid.

Neso is already ramping up its consumer demand flexibility service this winter. In return for reducing power use at peak times, customers who are signed up to the scheme and who have smart meters can get money off their bills.

Greg Jackson, founder of Octopus Energy, the UK’s largest household supplier, said: “It’s great to see clean power by 2030 is possible – and the best path will revolve around customers, not just infrastructure.”

John Pettigrew, chief executive of National Grid, the listed company which owns much of England’s power infrastructure, added that the analysis is “an immensely helpful milestone for providing clarity on the steps that we, along with government, the regulator and industry must take”.

He called for a “relentless focus on meaningful and immediate reforms, of which connections and planning will be critical to success”.

Alistair Phillips-Davies, boss of energy giant SSE, said: “Industry will invest the money needed if regulators deliver investible frameworks and the government provides supportive policies that get projects built.

“The faster we get there the quicker we can deliver the good jobs and energy security we all want to see; building a strong homegrown system that is affordable and protects families and businesses from future energy price shocks.”

Jonathan Brearley, chief executive of regulator Ofgem, said it is “a big step forward to achieving clean power by 2030”.

“We will study the advice carefully along with government,” he said.

“The best way to protect consumers is to end fossil fuel dependency and get to net zero – but there are tough trade-offs required as Neso argues.”

The Government will publish a so-called clean power action plan in the coming months.