Consumers could end up paying £2.6 billion more per year in 2025 without faster deployment of renewable energy.
That’s according to new research from Green Alliance, which says the government is not following through on its earlier progress and policy since 2015 has delayed commitment of the final 5% support needed.
It adds the government has scrapped support for onshore wind, the last solar auctions were in 2015 and this week’s offshore wind auction procured 2GW less in offshore wind than it could have.
The research suggests if the government fully commits to renewables and energy efficiency, it would be unnecessary to invest in the much more expensive replacement of the UK’s nuclear fleet.
The latest Contracts for Difference scheme offered guaranteed prices for offshore wind well below new nuclear.
Green Alliance claims the costs of new nuclear plants would have to fall by at least 30% per cent – below £65/MWh – to compete with offshore wind after 2025.
It adds investment in green energy could result in consumer savings of more than £5 billion by 2030.