UK Energy Transition Outlook 2024: DNV Highlights Need for Policy Clarity

UK Energy Transition Outlook 2024: DNV Highlights Need for Policy Clarity

(IN BRIEF) DNV, a leading independent energy expert, released its 2024 UK Energy Transition Outlook (ETO) report, highlighting the urgent need for the UK Government to prioritize long-term policy clarity and consistency to drive the transition away from fossil fuels. The report warns that without immediate action, the UK risks missing its 2030 climate targets and legally binding mid-century decarbonization goals. Despite progress in scaling renewables, the UK remains heavily reliant on fossil fuels, necessitating accelerated efforts towards decarbonization through initiatives such as carbon capture and hydrogen utilization. However, DNV emphasizes that the transition is financially feasible, with domestic consumers poised to benefit from reduced household energy bills as renewables become more prominent. The report underscores the importance of comprehensive policy support, private capital investment, and societal engagement to ensure a successful energy transition.

(PRESS RELEASE) BÆRUM, 22-Feb-2024 — /EuropaWire/ — In its latest report, the 2024 UK Energy Transition Outlook (ETO), independent energy expert and assurance provider, DNV, emphasizes the critical need for the UK Government to prioritize long-term policy clarity and consistency to catalyze the transition away from fossil fuels. Without swift action, the report warns, the UK risks missing its 2030 NDC target and legally binding mid-century decarbonization goals.

DNV’s findings reveal concerning trends indicating a stalling progress towards net zero, exacerbated by disappointing outcomes in recent wind allocation rounds and uncertainties surrounding the decarbonization of home heating and the role of hydrogen in the UK’s energy landscape. To counteract this stagnation, the government must bolster policy support for a low-carbon future, the report underscores.

Despite significant strides in scaling renewables, the UK remains heavily reliant on fossil fuels, with a reduction to 70% dependency projected only by 2031. Urgent efforts are required to accelerate decarbonization through initiatives such as carbon capture and hydrogen utilization. Nevertheless, the report asserts that the energy transition is financially feasible, with annual energy infrastructure CAPEX expected to rise from £26 billion to £38 billion over the next 30 years.

Notably, domestic consumers stand to benefit from an anticipated 40% reduction in household energy bills by mid-century, driven by increased electrification and the growing share of renewables in the energy mix. However, DNV highlights that the UK is currently off-track to meet its 2050 decarbonization targets and NDC commitments, emphasizing the need for immediate action.

Hari Vamadevan, Executive Vice President and Regional Director, UK & Ireland, Energy Systems at DNV, stressed the urgency of the situation, stating, “The required climate objectives and decarbonization targets are in place, but the onus is on the UK Government to put a clear, ambitious strategy in place to make them a reality. What the UK desperately needs is a detailed transition roadmap to chart the country’s journey to the low-carbon energy system of the future – only then can businesses invest with confidence to drive the energy transition. The UK Government has always claimed to be a leader in the global net zero transition; now it is time to deliver on those claims. The ball is in the court of the policymakers.”

DNV recommends a comprehensive ‘whole systems’ approach to the energy transition, urging policymakers to incentivize private capital investment in green generation while facilitating planning and permitting for critical infrastructure development. Additionally, extensive societal engagement is essential to embed low carbon solutions and ensure a just transition.

Hari Vamadevan added: “The required climate objectives and decarbonization targets are in place, but the onus is on the UK Government to put a clear, ambitious strategy in place to make them a reality. What the UK desperately needs is a detailed transition roadmap to chart the country’s journey to the low-carbon energy system of the future – only then can businesses invest with confidence to drive the energy transition. The UK Government has always claimed to be a leader in the global net zero transition; now it is time to deliver on those claims. The ball is in the court of the policymakers.”

Today marks the launch of the 2024 UK ETO, where energy leaders, government officials, and industry representatives convene to discuss strategies for revitalizing the low-carbon transition. The panel will address key actions needed to invigorate progress towards a sustainable energy future.

The panel comprised of Viken Chinien, VP – Enterprise Risk Management DNV; Hannah Bronwin, Director of Business Development, SSE Thermal; Owen Bellamy, Team Leader, Energy Supply Decarbonisation and Resilience, Climate Change Committee; Harry Manisty, Investment Director, Octopus Energy Generation; Dean Cooper, Global Energy Lead, WWF; Clara Barby CBE, Senior Partner, Just Climate; and moderated by Lucy Siegle, British journalist and writer on environmental issues.

Download the report
Energy Transition Outlook UK 2024
A national forecast to 2050

About DNV

DNV is an independent assurance and risk management provider, operating in more than 100 countries. Through its broad experience and deep expertise DNV advances safety and sustainable performance, sets industry standards, and inspires and invents solutions.

Whether assessing a new ship design, qualifying technology for a floating wind farm, analyzing sensor data from a gas pipeline or certifying a food company’s supply chain, DNV enables its customers and their stakeholders to manage technological and regulatory complexity with confidence.

Driven by its purpose, to safeguard life, property, and the environment, DNV helps its customers seize opportunities and tackle the risks arising from global transformations. DNV is a trusted voice for many of the world’s most successful and forward-thinking companies.

In the energy industry

DNV provides assurance to the entire energy value chain through its advisory, monitoring, verification, and certification services. As the world’s leading resource of independent energy experts and technical advisors, the assurance provider helps industries and governments to navigate the many complex, interrelated transitions taking place globally and regionally, in the energy industry. DNV is committed to realizing the goals of the Paris Agreement, and supports customers to transition faster to a deeply decarbonized energy system.

Media contacts:

Author:
Penda Sall
Media Relations, Energy Systems
Phone: +33 651 69 88 64
contact.energysystems@dnv.com

Neil James Slater
Head of Media Relations, Energy Systems
Phone: +44 2038165702
contact.energysystems@dnv.com

SOURCE: DNV AS