14 December 2020
Following the launch of the new Energy White Paper 'Powering our Net Zero Future' LCP's Kyle Martin, Head of Market Insight says:
“The Energy White Paper sets out policies for addressing some of the biggest challenges standing in the way of achieving Net Zero. The proposals for the power sector will allow big infrastructure projects such as new nuclear, Carbon Capture and Storage (CCS), hydrogen production facilities, and renewable generation to be developed and, most importantly, to attract private finance. LCP has estimated that to meet net zero by 2050 a total of £350bn of investment will be required across power generation capacity alone. As such, it is crucial that the market framework delivers this investment at lowest cost.
“This investment in power assets needs to be done in conjunction with building out network capacity to transport energy around the country to where it is needed. Since January 1 2020, Great Britain has turned down enough wind power to have powered over 800,000 homes for the whole year. Achieving Net Zero will mean ensuring we can use and store the renewable power we generate, and this will require co-ordination between Ofgem and BEIS to deliver whole system solutions.”