E3G, an independent climate change think tank, published a report on 17 July 2024 setting out a framework for achieving a low-cost, clean electricity system in Great Britain by 2030. The report was written by Susie Elks, Juliet Phillips and Simon Skillings, and uses the Labour government's 2030 clean power target as its reference point1.
The report states that Great Britain is highly dependent on gas for electricity generation, which it describes as a major risk for households and national finances. It says the recent gas crisis pushed inflation high and millions into fuel poverty, and that the Treasury was forced to subsidise energy bills by over £94 billion1. It adds that recurring price spikes could cost the economy double the cost of net zero, citing analysis by the Office for Budget Responsibility1.
"This report sets out a framework for achieving this, using the Labour Government's 2030 clean power target as the guiding star."
The proposed system would be underpinned by wind and solar power, managed with flexible demand and storage, alongside new low-carbon hydrogen power stations and green hydrogen storage. E3G says a renewables-based system could make bills lower than they were before the gas crisis and shield against future price spikes1. It also warns that moving away from gas cannot be done instantly, so bills may remain high for some time1.
For that transition period, the report lists three targeted measures for consumers:
| Measure | Purpose as stated |
|---|---|
| Targeted energy bill support, including a social tariff | Guaranteeing affordable energy for vulnerable households |
| Boosting home decarbonisation through energy efficiency, heat pumps and heat networks | Raising rates of home decarbonisation |
| Removing policy levies from electric heating | Lowering bills and kick-starting the heat pump market |
E3G also says significant sums must be spent to transform the electricity system, and that this cost will be much greater if the transition is managed poorly, wiping out the potential to permanently lower bills. It states that government will need to stand up to vested interests to secure the lowest cost pathway, and that policies and independent governance mechanisms are needed to direct investment into the right assets at a good price1.
Why it matters for households
The report links household energy costs directly to the fuels used to generate electricity. On E3G's account, gas dependence is what exposed households to the price spikes of the recent crisis, and the £94 billion of Treasury support for bills is presented as the cost of that exposure1. A system built on wind, solar, storage and hydrogen is put forward as a route to bills lower than pre-crisis levels, though the report is explicit that bills may stay high during the transition itself1.
For a home's energy independence, the measures named in the report touch on the demand side as well as generation. Energy efficiency, heat pumps and heat networks are listed as ways to raise rates of home decarbonisation, and removing policy levies from electric heating is proposed as a way to lower running costs for electric heating and expand the heat pump market1. The report does not set out rates, eligibility criteria or funding levels for any of these measures, and no delivery body or timetable for them has been reported1.
What happens next
The report is a framework rather than a programme, and no dated next steps are set out in it. Its stated guiding target is the Labour government's 2030 clean power goal1. Further detail on the policy and governance arrangements it proposes sits in the regulation and policy area covered by the report's recommendations.