UK To Accelerate Green Energy Transition

The UK Government has joined the world’s first global regulatory body to speed up the transition to green energy.

Back in 2019, in an effort to reach net-zero by 2050, the UK were the first nation to introduce legislation towards lowering greenhouse emissions. One of the key drivers is Ofgem, the UK energy regulator. 

To launch the global “Regulatory Energy Transition Accelerator”, Ofgem has teamed up with International Renewable Energy Agency (IRENA), International Energy Agency (IEA) and World Bank.

But why is Ofgem making this decision? What is the mission of the “Regulatory Accelerator”? What is the UK government doing to speed up the transition to green energy?

This article will cover all you need to know about how the UK is moving towards a more renewable future.  

Why Is Ofgem Making This Decision?

Our planet is facing a climate crisis, recently made evident by the energy issues faced in the UK. We rely heavily on fossil fuels, with nations all fighting to secure gas reserves each winter. Just this year, we saw a 250% increase in the price of wholesale gas.

With higher gas prices leading to a record number of smaller energy firms going bust, customers are facing some of the highest energy prices we have ever seen. However, what if we relied less on fossil fuels and more on renewable energy?

Well, not only would we have a greener energy industry but also we could have cheaper energy. Sounds like a win-win situation, right? That is why Ofgem is fighting for more to be done to create a greener energy industry.

What Is The Global “Regulatory Energy Transition Accelerator”?

Nations across the globe have all pledged to decrease their emissions by 2050, with a tighter focus on becoming completely carbon neutral. To do this, there needs to be a cooperative effort to produce cleaner energy that will power and heat our homes, as well as power vehicles and industries.

So, this is where the global “Regulatory Accelerator” comes in. The organisation will help worldwide regulators to become carbon neutral as well as and delivering “clean, secure energy systems to deliver our Paris climate commitments”.

Jonathan Brearley, the chief executive of Ofgem said that “The Accelerator will help regulators to learn from each other’s experiences” and in addition, “develop new approaches for the systems of the future”.

To achieve our targets, Jonathan Brearley also mentioned that “we must think entirely differently to power the global economy without fossil fuels”. When looking further down the line, renewable energy “will better shield consumers from commodity price shocks as well as protecting the planet we all share”.

Across the world, there are roughly 20 regulators in each continent that have signed up to the Accelerator. After the global conference COP26 in Glasgow, there is an expectation of more regulators to follow suit. 

What Are The Goals Of The Global “Regulatory Energy Transition Accelerator”?

To tackle the biggest issues facing the global energy market, the “Regulatory Energy Transition Accelerator” has set up the following goals:

• To support the sharp rise in renewable energy through more flexible and globally connected new systems.
• To meet the increasing demands and challenges for electricity, as well as transitioning away from fossil fuels for both transportation and industries.

The Director-General of IRENA, Francesco La Camera has stated that “IRENA’s World Energy Transitions Outlook clearly sees electricity becoming the main energy carrier of the future” with a focus on “renewables providing 90 per cent of total global power by 2050”.

With plans of decarbonisation in the power sector, he followed stating the initiative “will support energy regulators across the world in the management of an accelerated energy transition”.

COP26 And Regulatory Energy Transition Accelerator

At COP26, the UK government along with The International Energy Agency launched their plans to help keep the world on course for 1.5C through improving regulatory capacities.

The global initiative that brings together all the global energy regulators is called The Regulatory Energy Transition Accelerator (RETA). They, in addition to the IEA, Ofgem, IRENA and the World Bank will be at COP26 to announce the annual work plan.

There has been global support for the initiative from nations and regulators around the world, with the understanding of how important their role in the clean energy transition is. The task of encouraging investment and effectively managing energy systems will be highlighted.

Other topics such as the integration of renewable energies, the electrification of transport, tariff structures, as well as the role of low-carbon fuels such as hydrogen will be discussed too.

What About The IEA?

For us to have a meaningful impact on rising temperatures, at least $ 4 trillion per year will be needed to be invested by 2030 on clean energy projects and infrastructure. 

Unfortunately, for more emerging economies, it can cost up to seven times more capital for investments. This is due to concerns about local regulations. However, a transparent and stable regulatory environment will lower the cost of capital, as well as increase the affordability of moving to clean energy.

We are focused on shifting our electricity sector from the current heavy reliance on fossil fuel power plants. When doing so, regulators need to think about how our world is evolving, with new types of energy security issues. Some of these include resilience against extreme climate events and cyberattacks.

What Is The UK Government Doing To Transition To Green Energy?

With plans of becoming one of the world leaders in the green energy transition, the UK government are working closely with Ofgem to create a greener energy sector. Through investment, regulation and strategic legislations, here are two examples of what the UK government is doing.

Will Greener Energy Lower My Energy Bills?

With demand for energy higher than ever, the nation is facing rising energy prices. Globally, wholesale energy prices are rising due to many issues facing the planet. With limited fossil fuel supplies, we will eventually see the demand for natural gas exceed supply, causing soaring prices.

To combat this, accelerating the transition to renewable energy could be a solution. Shifting away from a reliance on fossil fuels will likely lead to a cheaper energy market, as well as one that is better for our planet.

Key Points To Remember

Ofgem will launch the global “Regulatory Energy Transition Accelerator” along with International Renewable Energy Agency (IRENA), International Energy Agency (IEA), and World Bank.

 Global energy regulators have an important and key role in reaching climate targets, working cooperatively to meet our goals.

 This initiative will provide support and guidance to regulators from around the world to speed up the switch from fossil fuels to clean energy at the lowest cost possible.