The UK government can both achieve its Clean Power 2030 mission and bring down electricity bills for households. Detailed modelling shows the government target of 95% clean power by 2030 is attainable, and will protect the UK from gas price volatility. If that is paired with the policy reforms in E3G’s Electricity Bills Charter, billpayers could enjoy savings of over £200 a year by 2030.
Modelling by Baringa Partners shows that reducing delivery constraints, allowing faster rollout of renewables, can take the UK to 96% clean power generation by 2030. In this scenario, offshore wind more than trebles, and both solar and onshore wind more than double.
The analysis additionally shows that the clean power mission can be met without using biomass generation at the Drax plant. This is significant, considering the strong evidence on carbon emissions associated with using biomass in power stations.
Reducing vulnerability to gas prices
Reaching the clean power target would also bring more stability to electricity bills and would protect households from another gas price shock.
Under the most ambitious clean power scenario modelled for 2030, a typical electricity bill would go up by only £70 if there was a gas price shock equivalent to the one experienced in 2022 when Russia invaded Ukraine. That compares to an increase of £335 in the average electricity bill in 2022, when the government also had to spend £44 billion bailing out households and business.
An Electricity Bills Charter to bring down bills
Policy reform is essential to allow consumers to reap the full benefits of an electricity system powered mostly by renewables. With the right policies, electricity bills can be brought down whilst still achieving the mission.
E3G’s Electricity Bills Charter is designed to lower electricity bills for all households. We estimate that this package of policies could bring down an average electricity bill by over £200 a year.
