Electricity Generation

The continued reliance on oil and gas for electricity generation in the UK is a central concern for the Bath MP. She has repeatedly noted that the UK’s dependence on gas is both environmentally unsustainable and economically risky.2,3 Fossil fuel-based electricity generation contributes significantly to the UK’s greenhouse gas emissions,4 undermining efforts to meet the nation’s target of Net Zero emissions by 2050.

The UK’s reliance on imported gas exposes it to fluctuations in the global energy market, subjecting households to higher energy costs and worsening the symptoms of the ongoing cost of living crisis. Hobhouse has noted to Ministers that this dependence leaves the UK vulnerable to geopolitical tensions and at the hands of the volatile global fossil fuel market, as seen in the advent of the Russia-Ukraine war.5 Even households that have switched to renewable electricity suppliers are indirectly affected by rising gas prices, as gas still plays a significant role in the national grid.6

In July 2024, Mrs Hobhouse hosted over a hundred industry experts and civil servants, as well as new and returning MPs, to the Parliamentary reception for The Parliamentary Renewable & Sustainable Energy Group (PRASEG). At the event, Wera Hobhouse led calls for renewable innovation and the need to work together to deliver the just transition away from polluting, costly electricity generation. Her party, the Liberal Democrats, have called to deliver this change by generating at least 80% of the country’s electricity from renewable sources by 2030.7 Though previous governments have failed to match the pace required to meet current UK targets, according to the Climate Change Committee (CCC)8. Hobhouse has called for greater ambition and investment in various forms of renewable electricity, including solar, wind, and tidal stream, to realise a cost-effective and secure market.

Solar power is a key area for significant growth. In 2021, solar energy provided almost 5% of the UK’s total electricity supply.9 However, the Bath MP has emphasised to Ministers that this figure has the potential to be much higher. If the UK can achieve 40 GW of solar capacity by 2030, solar power can meet around 15% of the country’s electricity needs.10

The potential for rooftop solar in particular, remains largely untapped. Hobhouse advocates for policies that would incentivise homeowners and businesses to install solar panels, which would decentralise electricity generation and reduce the burden on the national grid. Large-scale solar farms, which are often subsidy-free,11 also present an opportunity for further expansion. In 2023, Wera Hobhouse visited Beechen Cliff School with Bath & West Community Energy to hear about how their rooftop solar installation is set to save them approximately £50,000 a year, enough to hire a new teacher. 

Yet in 2022, only 0.7 GW of solar capacity was deployed in the UK, far short of the 4.3 GW per year required to meet our target of 70 GW by 2035.12 The Bath MP has consistently called for more robust government support to accelerate solar deployment to address this gap.

The UK’s renewable electricity strategy

Wind power is another critical component of the UK’s renewable electricity strategy. Hobhouse has long-been a strong advocate for both onshore and offshore wind development, particularly during the de-facto onshore wind ban that the previous government had instated. Onshore wind is typically more cost-effective than offshore wind,13 though planning and regulatory barriers have slowed its growth in recent years. The new Labour government has since lifted restrictions, and oversaw record breaking Contracts for Difference (CfD) rounds earlier this year. Previously, the auction, which supports renewable energy projects by guaranteeing a fixed price for the electricity they generate, had not been so successful. Last year, Allocation Round 5’s (AR5) budget was cut by 28% when compared to Allocation Round 4 (AR4), falling from £285 million to £205 million.14 Wera Hobhouse raised concerns about the implications of the cut to the then Energy Minister Graham Stuart to ensure that the CfD rounds were bringing the most value possible to both the planet and the consumer.

The UK's renewable electricity strategy

Meanwhile, offshore wind has the potential to generate large amounts of electricity, although its deployment has been similarly stunted over recent years. Floating offshore wind technology is a promising innovation that Hobhouse has supported. Unlike traditional offshore wind farms, which are anchored to the seabed, floating wind farms can be located far out at sea, where wind speeds are higher and more consistent. Hobhouse has argued that floating offshore wind could generate enough electricity to meet a significant portion of the UK’s energy needs,15 and leads calls to make this a reality.

Tidal Stream also saw its ring-fenced budget in the 5th CfD Allocation Round cut by a half. The UK is home to the world’s second largest tides, harnessing their could secure the nation as a global leader in tidal stream technology while powering at least 11% of our current electricity demand.16 The electricity source is also projected to be cheaper than new nuclear power and could save £1bn per year for UK households by 2035.17 It could also boost the UK economy by £1.4bn by 2030 and support thousands of new green jobs.18

Wera Hobhouse has been at the forefront of uniting industry and Parliamentarians on this issue, hosting a roundtable with the Marine Energy Council in the House of Commons last year. The group discussed the potential to harness wave power, a rapidly developing technology and, with the possibility of co-locating wind and wave power, could benefit the consumer by making the energy system much more cost-effective. Recent research shows that co-locating wave and wind energy will deliver a saving of up to 12% in the Levelised Cost of Energy (LCOE) for both projects.19  

Nuclear, while providing a low-carbon source of electricity, contrastingly demands high building costs, rendering them a costly alternative to renewable. Hobhouse has criticised previous governments’ reliance on nuclear power as a long-term solution, pointing to the financial burden on households. The Sizewell C nuclear project, for example, is expected to add approximately £12 per year to household energy bills during its construction.20 The Bath MP has argued that greater investment in renewables earlier could have mitigated the need for such costly projects.

Wera Hobhouse notes, however, that to meet our renewable electricity targets on time, we have to bring individuals along with us by showing them its benefits. Community energy is a promising answer to this challenge, offering tangible and immediate economic benefits while paving the way to Net Zero. Hobhouse has highlighted the success of community energy initiatives in her own constituency, such as Bath and West Community Energy, which has raised £11 million from local investors and contributed to local projects aimed at reducing fuel poverty and promoting sustainability.21 

Not only do these projects provide clean energy, but they also create jobs, support local economies, and increase public buy-in for renewable technologies.Hobhouse has consistently called for enabling mechanisms to unlock the potential of community energy and accelerate its contribution to the UK’s electricity generation. Recently, she challenged Ministers on the lack of provisions for supporting community energy projects in Labour’s new Great British Energy Bill.

UK renewable electricity targets

The transition to renewable electricity also requires significant upgrades to the UK’s electricity grid. Hobhouse frequently emphasises that the current grid infrastructure is not equipped to handle the expected doubling of electricity demand by 2050, driven in part by the electrification of transport and heating.22

A major challenge for new renewable projects are long wait times for grid connections, particularly for offshore wind projects. Nearly 100 GW of electricity from offshore wind farms is currently awaiting grid connections, and some developers have faced delays of up to 13 years.23 Hobhouse has called for urgent investment in grid infrastructure to overcome these bottlenecks and ensure that renewable electricity can be delivered to consumers efficiently.

Additionally, she has raised concerns about the potential environmental impact of grid upgrades. National Grid’s visual impact program, which aims to reduce the impact of overhead power lines on sensitive landscapes, is a positive step, but there is room to establish greater assurances that grid expansion is both environmentally responsible and acceptable to local communities.


References

  1. Cooper, Charlie , and Abby Wallace. 2023. “20 People Who Matter in the UK’s Race to Net Zero.” POLITICO. June 14, 2023.
  2. Jakob Feveile Adolfsen, Massimo Ferrari Minesso, Jente Esther Mork, and Ine Van Robays. 2024. “Gas Price Shocks and Euro Area Inflation.” Social Science Research Network, January.
  3. The Grantham Institute. 2023. “How Cost-Effective Is a Renewables-Dominated Electricity System in Comparison to One Based on Fossil Fuels?” Imperial College London. 2023.
  4. Department for Energy Security and Net Zero. 2022. “2022 UK Greenhouse Gas Emissions, Provisional Figures.” 2022.
  5. Guan, Yuru, Jin Yan, Yuli Shan, Yannan Zhou, Ye Hang, Ruoqi Li, Yu Liu, et al. 2023. “Burden of the Global Energy Price Crisis on Households.” Nature Energy 8 (8): 1–13.
  6. Energy UK. 2024. “The Role of Gas in Generating Electricity – Energy UK.” Energy UK. May 19, 2024.
  7. Liberal Democrats. 2019. “Tackling the Climate Emergency Policy Paper 139.”
  8. imate Change Committee. 2024. “Progress in Reducing Emissions 2024 Report to Parliament.” Climate Change Committee. 2024.
  9. National Grid. 2023. “How Much of the UK’s Energy Is Renewable?” www.nationalgrid.com. February 23, 2023.
  10. Solar Energy UK. 2022. “Everything under the Sun SOLAR ENERGY UK BRIEFING the Facts about Solar Energy.”
  11. Burdett-Gardiner, Richard. 2023. “UK Subsidy Free Solar Market Continues to Flourish.” Renewable Energy Hub UK. September 2023.
  12. Climate Change Committee. 2022. “Progress in Reducing Emissions 2022 Report to Parliament.”
  13. National Grid. 2024. “Onshore vs Offshore Wind Energy: What’s the Difference? | National Grid Group.” National Grid. August 2024.
  14. Department for Energy Security and Net Zero. 2023. “UK Confirms £205 Million Budget to Power More of Britain from Britain.” GOV.UK. 2023.
  15. The Crown Estate. 2024. “UK Offshore Wind Reaches New Record High and Is on Track to Generate Enough Electricity to Meet the Needs of Nearly Half of UK Homes.” The Crown Estate. July 29, 2024.
  16. Skopljak, Nadja. 2024. “Tidal Energy Has Potential to Provide 11% of UK’s Electricity Demand, Analysis Says.” Offshore Energy. January 4, 2024.
  17. Marine Energy Council. 2022. “New Research Demonstrates the Cost-Reduction Pathway of Tidal Stream | UK Marine Energy Council (UKMEC).” UK Marine Energy Council (UKMEC). October 17, 2022.
  18. Edie Newsroom. 2018. “Tidal Power to Reduce Emissions and Boost UK Economy by £1.4bn by 2030, Report Finds – Edie.” Edie. 2018.
  19. Green Liberal Democrats. 2024. “Wera Hobhouse MP  Calls for the UK to Harness the ‘Revolutionary’ Potential of Tidal Stream Energy to Slash Household Bills by £1bn.” Green Liberal Democrats. 2024.
  20. Lawson, Alex. 2022. “Sizewell c ‘May Cost Double Government Estimates and Take Five Years Longer to Build.’” The Guardian. The Guardian. May 22, 2022.
  21. Bath and West Community Energy. 2019. “Share Offer.”
  22. Energy Institute. 2024. “Global Grid Infrastructure Needs to More than Double by 2050 to Meet Surging Electricity Demand.” Energy Institute. 2024.
  23. Purton, Michael. 2024. “Wind Farms Waiting Years to Get on Grid, and Other Climate News.” World Economic Forum. July 10, 2024.

Bibliography

  1. Bath and West Community Energy. 2019. “Share Offer.”
  2. Burdett-Gardiner, Richard. 2023. “UK Subsidy Free Solar Market Continues to Flourish.” Renewable Energy Hub UK. September 2023.
  3. Climate Change Committee. 2022. “Progress in Reducing Emissions 2022 Report to Parliament.”
  4. 2024. “Progress in Reducing Emissions 2024 Report to Parliament.” Climate Change Committee. 2024.
  5. Cooper, Charlie , and Abby Wallace. 2023. “20 People Who Matter in the UK’s Race to Net Zero.” POLITICO. June 14, 2023.
  6. Department for Energy Security and Net Zero. 2022. “2022 UK Greenhouse Gas Emissions, Provisional Figures.” 2022.
  7. 2023. “UK Confirms £205 Million Budget to Power More of Britain from Britain.” GOV.UK. 2023.

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