A clean power system saves UK households £300 per year

  • London

  • 18 October 2023

UK households could save £300 every year on their electricity bills in 2030 if the government completes its switch to a mostly clean power system by then, according to new analysis from Ember.

The analysis finds that the savings from low-cost renewables far outweigh the total investment costs required. If 2030 clean power targets are met, the total annual saving for the UK economy is £8.7 billion.

The new report reveals that the UK can reach a 98% clean power system in 2030 by delivering on existing targets for offshore wind, solar power and other system elements. However, the UK government is currently falling behind on delivering these commitments.

“The longer the UK relies on fossil fuels, the longer households will feel the pinch. A clean power system will save households hundreds of pounds a year off bills, but lagging government action risks blocking those benefits,” said Harriet Fox, energy analyst at Ember.

Green boost to economy

The analysis found that if current commitments are delivered, the UK could export 49 TWh of electricity in 2030 to neighbouring countries, which is enough to power Ireland for a year.  Historically, the UK has been reliant on importing electricity from other countries.

The spare power could also be used for green hydrogen production, which will be needed to support sectors across the economy such as industry and transport. If the UK meets its clean power commitments, the analysis by Ember finds that the country could produce 34 TWh of green hydrogen in 2030, more than 30 times the current level.

Notes to editors

Media enquiries

Hannah Broadbent

Director of Communications & Strategy

About Ember

Ember is an independent energy think tank that aims to accelerate the clean energy transition with data and policy. It creates targeted data insights to advance policies that urgently shift the world to a clean, electrified energy future.

Methodology

Scenarios

This analysis considers scenarios for the UK’s power system in 2030, largely based on capacity and demand values provided in National Grid’s Future Energy Scenarios 2023 report.

The ‘Delivering commitments’ scenario assumes that the government delivers its own commitments on time. This includes reaching 50 GW of offshore wind by 2030, 70 GW of solar by 2035, and 10 GW of low carbon hydrogen production capacity by 2030. This scenario also sees gas power plant capacity fall, interconnection increase and onshore wind double from 2022 levels.

Bill savings

Ember’s analysis translates the scenarios into household bill savings compared to OFGEM’s Q3 2023 default price cap. Ember’s power sector model is used to calculate changes in wholesale power prices (including contract for difference costs) which make up the main component of a household bill. The second major component, network charges, is scaled using National Grid’s planned investment in the UK’s power network. Other bill components such as policy charges, operating costs and margins are assumed to stay at similar levels.