The Department of Business, Energy and Industrial Strategy (BEIS)’s cost of energy review has been concluded. The review, led by energy specialist Professor Dieter Helm of the University of Oxford, has resulted in the two following main conclusions: energy costs are significantly higher than they should be to meet Government objectives on tackling climate change and ensuring security of supply, and regulation, market design and energy policy are not fit for purpose for the ever-faster changing low-carbon energy market.
In response to the publication of the review’s report, renewables trade body RenewableUK’s Chief Executive Hugh McNeal said:
“Professor Helm’s report supports the view that renewables are set to become the backbone of the UK’s modern power system and that a flexible grid will ensure costs for consumers are kept as low as possible. He specifically says wind energy can make a contribution to security of supply and describes renewables as the ”new conventionals”.
“The cost of renewable energy has fallen further and faster than anyone predicted – and Professor Helm predicts that this trend will continue. Offshore wind costs have dropped by 50% since 2015, making it cheaper than nuclear and gas. When it comes to keeping bills down, low-cost onshore wind is a crucial technology for consumers and must be allowed to compete on a level playing field”.
“Professor Helm rightly recognises the importance that innovation and research, and a supportive tax regime, have to play in bringing forward other technologies such as wave and tidal power, in which the UK leads the world”.
The review was a Conservative manifesto as well as a Government industrial strategy pledge.