Labour wins UK general election, with promising implications for UK green economy

The result has promising implications for the UK’s green economy, with Labour aiming to make the UK a “green energy superpower”. This includes promises to double onshore wind, triple solar and quadruple offshore wind by 2030. By then, the party hopes to have rid the national grid of fossil fuels altogether.

While in power, the Conservative Party maintained a de facto planning ban on onshore wind and generally dithered on renewables, while claiming to be a strong player in the clean energy sector. It also supported the deployment of new oil and gas platforms in the North Sea, which was met with widespread condemnation.

One of the biggest challenges for the new Labour government is to address the congestion on the National Grid. It can do this by pushing through massive upgrades to modernise the grid and increase access to renewable energy projects. It’s not just about technological improvements. Although National Grid is currently modernising the grid, it has consistently faced fierce opposition from some local communities who don’t want wind turbines and pylons to affect their views of the countryside. Labour will need to take a more assertive and decisive stance in trying to overcome this opposition.

Lifting the de facto ban on onshore wind farms will help cut household electricity bills. If Labour can achieve this, it will be one of the government’s most popular policies and will significantly boost its green credentials.

“Our dependence on oil and gas has led to a cost of living crisis,” said Ed Matthew, campaigns director at E3G. “By delaying and damaging clean energy policies that could have cut energy bills, Rishi Sunak has turned the Conservatives against every household in the UK. This was a catastrophic political mistake. Labour’s landslide election victory means Keir Starmer now has a historic public mandate to accelerate climate action, invest in the industries of the future and restore Britain’s climate leadership. Britain is back in the race to net zero.”

Sarah Spencer, land manager at Balance Power, said the new government could mean a new approach to clean energy development, but if Labor is to deliver on its promise to transform the energy system it needs to look closely at planning problems and take bold action to eliminate ineffective planning methods.

“This needs to be a priority, otherwise the new government risks kissing goodbye to its vision for a net zero emissions grid by 2030,” Ms Spencer said. “With the majority of clean energy projects being abandoned in the planning stages due to network bottlenecks, our ageing infrastructure is in urgent need of modernisation to cope with the growth in speculative applications. We also need clarity on how the new government will work with ESO to fully realise the benefits of the ‘First Ready, First Connect’ policy. This impasse has led companies like us to think outside the grid and look for alternative routes to delivering clean energy. For example, behind-the-meter projects bypass the grid, enabling us to directly supply energy-hungry businesses with clean energy while reducing the burden on the grid. However, the future of the industry depends on solving the grid issues and developers being able to deliver large-scale clean energy projects.”

On electric vehicles (EVs), Asif Ghafoor, CEO of Be.EV, said Labour should introduce a simple order requiring all local authorities to open up 50 per cent of their land to private companies to install EV chargers.

“They don’t have the capital or the experience to do it themselves,” said Mr Ghafoor. “We don’t want more regulations or change – it’s a headache for everyone. What we really need is continuity and certainty. That’s what will really help charging networks grow. Drivers need to be encouraged and we have a couple of options. We could reduce the cost of energy for those who switch suppliers and get rid of VAT on the cost of charging electric vehicles. Norway is a good example. They’ve provided free exemptions for electric vehicle drivers and free parking for local authorities. They’re not expensive and have done a lot to create a more positive attitude towards electric vehicles. We have the opportunity to be world leaders in EV charging. We have the experience and the capital to do it and if we do it successfully we can export it to other countries, creating jobs and investment along the way. Every time previous governments have had a mandate to encourage investment in green finance it has ended in disaster. We should have less government involvement. There is enough capital and expertise in the UK that all the government needs to do is simplify matters and let the private sector get on with it.

Mr Ghafoor added that the government should extend the ban from 2035 to 2030 and that this is an achievable goal that will not cost the government much but will prove to be a huge psychological boost that will make people feel positive about electric vehicles again.

Christophe Williams, CEO of Naked Energy, said that now that Labour is in power it must end fossil fuel subsidies and that while some would have us choose between renewable energy and homeland security, we can’t have both.

“Security of supply for the UK can be secured by ending our dependence on natural gas,” added Mr Williams. “Gas prices have risen by 24 per cent in the last three months and as winter temperatures drop, we can expect further increases. We currently import liquefied natural gas from the US. This should only be a fallback – it is too expensive to be a solution. All this makes it misleading to suggest that subsidising fossil fuels will strengthen our domestic energy security and drive down prices. Renewable energy is the only answer to long-term security. There are hundreds of small companies in the UK producing innovative renewable technologies that can meet our energy needs. What is holding them back is an inconsistent and uncertain investment environment. This is particularly relevant to decarbonising heat. It accounts for around 37 per cent of the UK’s total carbon emissions, yet it is constantly being forgotten in the rush to electrify everything. The next government would be wise not to neglect this – we cannot achieve net zero emissions without renewable heat.”

Mr Williams also said a positive step Labour could take would be to reintroduce incentives for renewable heat sources in trade and industry and ensure they are retained.

“We should also introduce a premium for local suppliers, similar to the US Inflation Reduction Act,” Mr Williams said. “Giving a 10 per cent premium for products designed or manufactured in the UK would give a huge boost to renewable energy. So we also need to train the next generation of workers to fill the jobs that will be created. Governments should work with companies and set up academies to do this, and fund more apprenticeships. We have the chance to become world leaders in renewable energy, and it won’t take historic levels of funding. We just need the government to give us the support and clarity to push us in the right direction. We have the innovation and resources to do the rest.”

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