Tom Glover, RWE UK Country Chair:

The clear message from the Climate Change Committee’s report today is that, whilst there has been some progress, the Government’s overall approach and policy framework lacks the pace of ambition required to meet future targets.

Specifically on power, we would echo the CCC’s view that a key gap is the absence of an overarching stand-alone plan or strategy for delivering a decarbonised, resilient electricity system by 2035. Such a plan would send a clear signal and provide clarity to investors, who will be required to spend £billions in investing in low-carbon power over the next decade if the UK is to achieve its targets. RWE alone has an ambition to invest up to £15bn in the UK by 2030 in developing clean energy projects to support the energy transition. However, over the last year we have seen a deterioration in the investment climate in the UK, against a backdrop of increased global competition for capital in clean energy.

We would also support the recommendation that the Government should clarify the way forward on electricity market design as soon as possible – and that this should be done in such a way that does not deter investment required to achieve a decarbonised power system by 2035. Whilst the current market arrangements need to evolve to ensure a decarbonised power sector remains efficient and investible – the Government should avoid overly complex or radical interventions that will lead to further uncertainty and a deterioration in investor confidence.

We would also support the call for action to ensure sufficient network capacity and timely grid connections, which we currently see as the #1 barrier to deploying low-carbon generation on the ground. 2023 is a ‘make or break’ year – we need a faster, more ambitious approach to addressing the critical barriers, including an overhaul the grid’s regulatory framework to ensure critical infrastructure is built ahead of need, and decisive action to accelerate the grid connections process.