Future of energy
Understanding the challenges
We need to continue to deliver reliable energy at affordable costs for customers, and to help the UK meet strict decarbonisation targets.
It’s a tough challenge: reducing carbon emissions while continuing to deliver what customers want and need.
The energy balance is how we refer to the challenge of finding a balance between all three
Reliable supply and infrastructure that meet demand
Decarbonised and carbon neutral
Cost-effective across the whole UK population
We need to find a balance
When weighing up the pros and cons of different energy solutions, it’s important to consider three things: how reliable it is; the environmental impact it has; and how much it costs. Some solutions might be very sustainable, but cost a lot and are unreliable. Others might be cheaper and reliable, but less sustainable.
Can customers pay?
Future energy policy will be paid for by customers’ bills. So before we started exploring the future of energy, we spoke to real energy consumers in a typical town in South Wales to ask them what they want and need.
Our research shows the initial setup cost is a key deciding factor for consumers considering switching to an alternative heating source.
Where an up-front cost was required, more than 80% of consumers would not – or could not – afford to change.
This means that any solution to the decarbonisaton of heat must consider access to low cost loans and grants or subsidies to make sure everyone can benefit.
Supporting clean growth
The UK is at the forefront of encouraging global clean growth, and by one estimate, the UK’s clean economy could grow at four times the rate of GDP. The future energy system must support this as we move towards a greener economy.