Public support for cross-party consensus on renewables - offshore wind is best value for billpayers

3 June 2024 - RenewableUK press release

As the General Election campaign intensifies with energy policy emerging as a key issue, RenewableUK has published new polling which shows overwhelming public support for a cross-party consensus on maximising investment in renewable energy projects to drive down consumer bills and increase Britain’s energy security.

RenewableUK has also published new independent research which demonstrates that the lowest cost electricity system which future governments could build by 2035 is one dominated by offshore wind

New polling by Opinium of 10,021 people in the UK, commissioned by RenewableUK, shows that 79% of voters want political parties to work together to create a consensus on maximising investment in clean power. This overwhelming support exists in the current voters of all political parties, with 81% of Conservatives, 86% of Labour, 89% of Lib Dem, 82% of SNP and 69% of Reform voters in support.

The new analysis by Aurora Energy Research for RenewableUK demonstrates that an electricity system which is dominated by offshore wind by 2035 is cheaper for billpayers than alternatives such gas (with or without carbon capture and storage), or importing power from abroad via interconnectors. Crucially, Aurora’s analysis factors in all costs of running each of these possible electricity systems, to make clear that managing the variability of renewables does not override the benefits for billpayers of transitioning to a clean system.

The analysis found that billpayers would be around £68 a year better off by 2035 with an electricity system dominated by offshore wind, compared to a scenario in which Government did not proactively encourage investment in clean power.

A scenario in which the UK scraps its net zero ambitions in favour of unabated gas would not only leave consumers £39 a year worse, but would also leave billpayers exposed to the risk of being over £133 worse off each year if the UK were to experience sustained high gas prices, as we have in recent years.

The analysis highlights the fact that wind offers security for billpayers against fluctuations in the cost of imported gas, as the new offshore wind capacity which governments procure in their annual auctions for clean power is secured at a fixed price, so offshore wind companies pay back to billpayers during periods of high electricity prices.

RenewableUK’s Chief Executive Dan McGrail said:

“Aurora’s research shows that shifting to an energy system dominated by offshore wind and renewables is the best decision for billpayers - and that’s including all the costs involved in managing the variable generation of renewables, such as storage and network upgrades.

“That’s why we’re calling for a consensus among all political parties on the need to focus on maximising private investment in renewables in every annual auction for new contracts to generate clean power. We hope the manifestos of all the main parties will reflect the high level of public support for moving faster on renewables.

“The UK should be much more ambitious about the number of wind farms we confirm each year, sending a positive signal to investors in new projects and manufacturers in new supply chains, as well as securing cheap electricity for billpayers and boosting our energy security.

“The research is also clear that scrapping net zero policies would leave billpayers worse off, and more exposed to volatile international gas prices."

Malavika Gode, Senior Associate, UK & Ireland Advisory, at Aurora Energy Research, said:

“Based on the findings, the team at Aurora Energy Research found that additional offshore wind capacity is one of the key pillars of a decarbonised power system. A power system with a substantial amount of offshore wind can provide a buffer against global gas price volatility."

The report by Aurora Energy Research, “Is offshore wind still good value for billpayers?” is available here.

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Notes

For further information, contact

Robert Norris, Head of Communications
07969 229 913 Robert.Norris@RenewableUK.com

RenewableUK’s members are building our future energy system, powered by clean electricity. We bring them together to deliver that future faster; a future which is better for industry, billpayers, and the environment. We support over 470 member companies to ensure increasing amounts of renewable electricity are deployed across the UK and to access export markets all over the world. Our members are business leaders, technology innovators, and expert thinkers from right across industry. RenewableUK’s events programme is available here.

Established in 2013, Aurora Energy Research is a leading global provider of power market forecasting and analytics for critical investment and financing decisions. Headquartered in Oxford, we operate out of 14 offices worldwide covering Europe, North & South America, Asia, and Australia. Our comprehensive services include market outlook packages for energy industry participants, advisory support, and innovative software solutions. We foster diversity with a team of over 600 experts with backgrounds in energy, finance, and consulting, offering unparalleled expertise across power, renewables, storage, hydrogen, carbon, and fossil commodities. Our mission is to ease the global energy transition through widely trusted quantitative analysis and high-quality decision support.

The fully-weighted polling of 10,021 adults across the UK was carried out by Opinium on 19 -22 April 2024.