“The 2030 Clean Power Plan is hard, but the benefits, both at the end and in the doing, are so worth it,” says Marcus Shepheard, Policy Manager at Nesta, capturing the core challenge the UK faces in its ambitious journey toward net zero.
In this episode of The Big Zero Show: 100 Days of Labour Podcast, Marcus joined Dimitris Mavrokefalidis to discuss the major policy moves shaping the UK’s energy landscape.
The first 100 Days: Promising but challenging
Reflecting on the first 100 days of the new government, Marcus was optimistic.
“We’ve seen an acceleration in ambition and action,” he said, pointing to significant policy shifts like lifting the ban on onshore wind and the establishment of Great British Energy (GB Energy).
According to Marcus, GB Energy has the potential to revolutionise the UK’s approach to affordable, large scale power generation projects, but he believes the decision to reinstate onshore wind is the most impactful in the short term.
“Onshore wind is a massive resource for the UK, and one that we have not even attempted to exploit properly,” he noted, describing it as a “no-brainer” that had been on the table for years.
The Path to 2030: A herculean task
The UK has committed to achieving a net zero grid by 2030 – a goal Marcus acknowledges as monumental but possible. “It’s very hard but doable,” he says.
The crux of the issue lies in the rising demand for electricity as sectors like transport and heating increasingly rely on electrification. Meeting this demand could require investments of between £350 billion and £500 billion.
One of the biggest challenges, Marcus explains, is the cost of capital. “We’ve squandered years of very cheap borrowing,” he laments, pointing out that with higher interest rates, borrowing is now more expensive, adding significantly to the costs of major infrastructure projects.
However, it’s not just about money. Coordination across sectors and effective government intervention will be key to making large-scale changes, from upgrading EV charging infrastructure to transforming home heating systems and retrofitting buildings for energy efficiency.
Planning bottlenecks and supply chain issues
Another persistent issue is the bottleneck in grid connections.
Renewable energy projects can face delays of up to 15 years to secure a connection to the national grid, a constraint Marcus described as “massive.”
He’s cautiously optimistic that recent planning reforms and Ofgem’s more anticipatory approach could help streamline the process, but it remains a significant hurdle.
Supply chain constraints are equally concerning. Marcus highlighted the limited availability of specialised equipment, such as the “two or three ships in the world” capable of installing the world’s largest offshore wind turbines.
He also noted the shortage of skilled labour needed for building pylons and retrofitting homes.
“GB Energy,” he suggests, “could play a role in smoothing out supply chain issues by ensuring the UK secures the necessary resources.”
But he adds that the government’s mission-driven approach will also be vital for aligning various ministries and industries to tackle these challenges in a coordinated way.
Looking ahead, Marcus sees two key areas of focus: providing clarity on the role of hydrogen in the energy mix, and developing the skills needed to meet the labour demands of the net zero transition.
“We need to be thinking of ourselves as a wind superpower,” Marcus declares, signalling a profound shift in how the UK must view its energy future.
Click the video to watch the full interview
