UK and France ramp up ambitious energy transformation plans

According to an analysis by the Polish Economic Institute, "The British Labour Party, the winner of the parliamentary elections on 4 July this year, announced in its programme a goal of decarbonising electricity production by 2030." The report's authors emphasize that achieving this goal would require a complete departure from burning fossil fuels, from which, in 2023, the United Kingdom generated as much as 40% of its electricity. In 2023, gas played the most significant role in electricity production, constituting 34% of the total.

In their study, PIE indicates that "The Labour Party announced a fourfold increase in offshore wind capacity (to 55 GW). At least 5 GW of these investments will be floating wind farms." Furthermore, according to the report, "The United Kingdom plans to triple photovoltaic capacity (to 50 GW) and double onshore wind farm capacity (to 35 GW).

The authors of the analysis refer to research by Aurora Energy Research, which suggests that "in a similar scenario of electricity transformation, the cost of UK investments in renewable energy during 2025-2030 could exceed $19 billion annually."

PIE analysts point to other vital actions in the Labour Party's program. These actions include "accelerating nuclear investments and extending the life of existing plants, allocating an additional $8 billion for the thermal modernisation of 5 million households, funding the industry and trade unions with $10 billion for local green energy production projects, and doubling the target for installed electrolysers for green hydrogen production (to 10 GW)."

For France, as reported by PIE, "the New People's Front in its energy programme maintains the declaration of achieving climate neutrality by 2050 but does not provide details on the expansion of new renewable energy capacities." The report's authors indicate that the coalition of left-wing parties wants to prioritize green investments and the expansion of offshore wind farms and the tidal power plant sector and halt the privatization of hydroelectric plants.

According to the PIE analysis, "the New People's Front announces support in the thermal modernisation process, the abolition of the 10% energy tax, the cancellation of planned energy price increases from 1 July, and a free unspecified number of kWh for each household." The institute estimates that "without income thresholds, the cost of the French 'first megawatt-hour free' could exceed $8 billion, which is over 2% of the French budget".

PIE analysts point out the lack of a clear position in the New People's Front program regarding the future of nuclear energy. They write, "This is the result of differences of opinion within the parties that make up this political bloc." The report reads, "The French Communist Party advocates for the development of nuclear energy, while the Socialist Party sees it as necessary but a transitional energy source. On the other hand, Mélenchon's 'Untamed France' party and the 'Ecologists' party advocate for the gradual withdrawal from the use of nuclear power plants by 2045."

PIE emphasizes that these parties agree on one postulate - "the reversal of the merger between the Nuclear Safety Agency and the Institute for Radiation Protection and Nuclear Safety." At the end of the report, the authors state that "The ambitious goals of France and the United Kingdom in reducing emissions can become an important impetus for the development of climate policy in Europe."