According to the National Audit Office, a lack of a long-term plan may discourage investors or cause them to raise prices.

According to a government watchdog, efforts by ministers to address the energy bill crisis have put the UK at risk of not reaching a key target for sourcing green power and threatening the country’s net zero objectives.

The government stated in2021that it aimed to generate all electricity from low-carbon sources by 2035 as part of its plan to reduce carbon emissions to net zero by 2050.

However, the National Audit Office (NAO) warned that the government had made little progress in producing a “long-term delivery plan” to increase clean energy sources due to the energy crisis that began in late 2021.

NAO cautioned that “the absence of a clear plan and the perception that government policies could change could discourage external investors from providing funds for new infrastructure or cause them to increase the rates of return they require, resulting in higher costs for energy consumers.”

Since 1990, the UK’s environmental impact of power generation has decreased by 73% due to the increased use of wind and solar power and the phasing out of coal power stations.

Nonetheless, approximately 40% of the UK’s electricity generates from gas. As vehicles and heating systems transition from fossil fuels to electricity, electricity demand will increase by up to 60% by 2035. The UK has set 2035 as the deadline for a ban on installing new gas boilers, but efforts to encourage households to seek low-carbon alternatives have stalled thus far.

Fearing that the rise in wholesale gas prices would render many households and businesses unable to pay their energy bills, the government stepped in late last year to subsidise energy costs.

The head of the NAO, Gareth Davies, stated: “It is obvious that [the government] has focused on the immediate energy crisis over the past year. “However, as a result, it lacks a plan for decarbonising power by 2035.” He added that the longer it took to develop a plan, “the greater the risk that it will not achieve its goals or will do so at a cost to taxpayers and consumers greater than necessary.” Meg Hillier stated, “The department for energy security and net zero lacks a delivery plan for decarbonising electricity.”

While it is understandable that DESNZ has focused on its response to the energy crisis, I am dissatisfied with its slow progress and lack of long-term focus. It is unclear whether DESNZ’s goals are attainable without a delivery plan.”

The government estimates that an investment of between £280 billion and £400 billion is required to decarbonise the sector.

Apart from the cost of researching new technologies and building new networks.

“Since the energy crisis, our focus has been on delivering cost-of-living support, including paying half of a typical household’s energy bills this winter, as this is the primary concern for families across the country. “The UK is decarbonising quicker than any other nation… Our goals are ambitious, but we have not taken our foot off the gas, and we remain committed to decarbonising the UK’s electricity system by 2035.”