Ed Miliband's push for Net Zero will require up to £240bn to upgrade the UK's electricity network, according to fresh government estimates. The cost of building pylons and power lines is set to soar over the next 24 years, with expenses added to consumers' energy bills.
Government Estimates Reveal Scale of Investment
At a conference attended by officials from the Department for Energy Security and Net Zero (DESNZ), deputy director Will Lochhead stated that the current electricity grid, mostly built in the 1960s, was not designed for future demand. He said: "As we electrify transport, heating, industry and other sectors, electricity demand is expected to more than double by 2050. Meeting this demand would require between £100-240bn of investment in the electricity network by 2050."
Rising Electricity Demand
DESNZ analysis shows electricity demand per year will rise 10% by 2030, 50% by 2035, and over 100% by 2050. Energy costs have led to a fracturing of support for climate change action among mainstream political parties in the UK.
The government admits electricity demand has been falling over the last two decades due to energy efficiency improvements and structural shifts in the economy. However, it expects this trend to reverse as the UK electrifies heating, transport, and parts of industry.
Government's Position
A DESNZ spokesperson said: "We urgently need to rewire Britain's grid after decades of underinvestment to power homes and businesses. We are going further and faster in our clean energy mission because it is the only route to lower bills for good." The government insists that not upgrading grid infrastructure will lead to "significantly" higher costs. DESNZ argues that reinforcements due by 2030 can reduce constraint costs by £4-5bn, and reforms will help unlock £40bn per year in "mainly" private investment in clean power and energy schemes.
The National Energy System Operator and the Climate Change Committee both forecast a rise in electricity consumption over the next 20 years as uptake of clean energy tech, such as electric vehicles and heat pumps, accelerates.
