The energy transition debate is dominating the UK political and media cycle, as the conversation becomes increasingly polarized by differing views on costs, fairness and the pace of the transition.
That was the view of Dhara Vyas, chief executive of industry association Energy UK, speaking at the group’s annual conference this morning (October 14).
Despite a year of progress, with Vyas recording milestones such as the lifting the de facto ban on onshore wind energy in England and Wales, the reform of Contracts for Difference and the launch of Great British Energy, “the debate has become increasingly fractured and politically charged in recent months,” Vyas said.
“It is right to question the pace of the transition, who pays for it and its fairness, but this should not distract from decarbonisation, which will not give businesses the confidence they need to invest in the future of this country.”
Vyas said Energy UK’s role requires it to act as a “critical friend” to the government. The bills have been “too high for too long” and this is closely related to the public discourse on how the energy transition should be achieved and paid for. But “inaction on clean energy doesn’t mean we’re standing still – it means we’re falling behind.”
The feeling that politics is currently inextricably linked to the success of the energy transition was alluded to by Chris Norbury, CEO of E.ON Next, who said it was difficult to heed the advice “just don’t be political” in his main sponsor’s speech at the event: “About energy? In 2025?”.
Marisa Steyn, partner at consultancy Gardiner & Theobald, was more explicit about the “contrasting positions” that major political parties are taking on net zero.
She referred to the Conservatives’ reported intention to repeal the Climate Change Act, arguing that “regardless of our affiliations, we can hopefully all agree that clean energy is not an ambition, but a necessity.”
Yselkla Farmer, CEO of BEAMA, the trade association representing electrical components manufacturers in Britain, said the main barrier to achieving clean energy by 2030 is currently politics. While it is right to remain open to debate, “that is not constructive at this time.”
If you overcome this, Farmer says, there are huge opportunities for growth in Britain.
Steve Scrimshaw, non-executive director of Windward, who owns a portfolio that includes Bute energyagreed. He pointed out that following the US election of Donald Trump as president and his repeal of the Inflation Reduction Act (IRA), “billions of capital are looking for a home, creating huge opportunities for Britain and Europe”.
“Government and industry must work together to position Britain as a home for global green investment.”
