The Power Market Outlook 2024: Is GB on track to meet net zero power?
This year’s annual Power Market Outlook, sponsored by SSE, takes a deep dive into the UK Government’s plans for a clean power system by 2030.
There are only five years to achieve the levels of low carbon build that is required to reach Clean Power. We know there are always potential for delays in major infrastructure build and demand may be higher than currently, so we can’t just pick one scenario for Clean Power but aim to build all technologies to their maximum level.
Sam Hollister Head of Energy Economics, Policy, and Investment
Using LCP Delta’s market leading modelling capability, we have built our own Clean Power scenario to provide government and industry with expert views on the approach to decarbonising the power sector and some of the challenges that may be faced along the way.
To reach Clean Power 2030, LCP Delta’s analysis identifies several barriers that industry, regulators, and policymakers need to focus on. These include:
- Scale-up of low carbon technologies: Massive acceleration needed across all low carbon technology; 2023's 3GW build rate is far below the required 11.3GW per year needed to meet 2030 goals.
- Increased CfD budgets: A 65% CfD budget increase for offshore wind is needed, along with greater support for solar and onshore wind.
- Transmission network bottlenecks: Clean Power 2030 is not achievable with the current development timelines for upgrading the transmission network.
- Urgent policy and market reforms: Government must expedite policy decisions, such as cap-and-floor schemes and the REMA programme, to reduce uncertainty for investors.
