The UK Government’s Great British Energy initiative could reduce consumer costs by £35 billion by 2050.
That’s according to a new report, produced by Nesta and Baringa, which highlights how the new body can speed up energy projects and lower expenses.
The report indicates that Great British Energy could make the delivery of low carbon infrastructure quicker, potentially reducing the time to build offshore wind farms by two to four years.
It also suggests the initiative could cut the £350-500 billion needed for the UK’s energy sector and save up to £1 billion in costs from failed offshore wind projects.
Additionally, the report anticipates that Great British Energy will improve the efficiency of network infrastructure, boost green job creation and support new technologies.
The report says that the changes from creating Great British Energy might cut constraint costs, which are expected to hit £3 billion per year by the late 2020s.
By taking on tasks such as site preparation and planning, Great British Energy is expected to help accelerate the transition to a net zero energy system.
Ravi Gurumurthy, Chief Executive of Nesta and report co-author, said: “The state can accelerate the net zero transition and lower costs in three ways.
“As a planner, it should be responsible for identifying where best to locate power stations and grid infrastructure, so we build in the right places and give clarity to the supply chain.
“As a pre-developer, it should prepare sites and fast track planning and consenting decisions, and grid connections. As an investor, it should co-invest in less established technologies that the private sector will not do alone.”
In response to the report published today, Yselkla Farmer, Chief Executive Officer of BEAMA, commented: “BEAMA’s research with the Energy Systems Catapult has shown that investment pre-2035 in our power grid will ensure a least cost approach to 2050.
“What we need is market stability, certainty, and speed, coupled with an ongoing commitment to deliver flexibility market frameworks which will help drive inward investment into the supply chain and transform our energy market into a zero carbon, more affordable opportunity.”
