This weekend, the National Energy System Operator (NESO) read the last rites to Labour’s policy of hitting Net Zero by 2030.
Alright, that’s not quite how they put it. The report, commissioned by Ed Miliband, concludes that the objective is “a huge challenge but is achievable”. You need to parse these things, however. It is seldom the habit of officials to outright tell ministers their plans are hopeless — and in any event, in a technical report NESO can stick to the realm of what is technically possible, rather than what is politically achievable. And the politics looks impossible.
Consider the money, for example. Now, Rachel Reeves has actually been fairly generous to Ed Miliband; he’s had £22 billion (over 10 years) for a major Carbon Capture and Storage project, and his department’s budget has risen from £6.4 billion in 2023/24 to £14.1 billion in 2025/26.
Not bad, especially when other ministers and backbench MPs are being asked to stomach means-testing the Winter Fuel Allowance. But it’s not anything like enough: according to NESO, hitting Net Zero by 2030 would require investment in Britain’s energy infrastructure to the tune of £40 billion a year.
The Energy Secretary might be the Treasury’s favoured son at the moment, but does anyone think he’s going to triple his budget?
Assuming for a moment he could work that miracle, he’d then run into all the practical and bureaucratic hurdles that make it so unnecessarily and abjectly awful at getting anything built. And a lot would need to get built. NESO says it would take 1000 kilometres of new onshore power lines, plus 4500 kilometres of undersea cables, to hit Net Zero by the Government’s deadline. Even that is just scratching the surface; industry and government projections suggest the green transition could require up to 460,000 kilometres of onshore cables by 2050.
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