How ambitious are Labour’s renewable energy goals?

In my time as a chartered accountant and renewable energy consultant, I’ve seen several major sector changes hit the headlines. From regulations on carbon capture to the controversial de facto wind ban seen under the Conservatives, the UK’s political landscape has always had an interesting impact on its energy policy.

With Labour winning a landslide majority in the July 2024 general election, it seems only right to assess the party’s most recent manifesto. Aiming to accelerate net zero efforts and deliver security with greater energy independence, Labour certainly has lofty ambitions for 2024 and beyond.

Reaching net zero emissions by 2050 is at the centre of Labour’s energy policy. To align itself with the UK’s Climate Change Committee’s expectations, Labour is introducing a mission to “Make Britain a Clean Energy Superpower by 2030”. While this largely applies to home improvements and insulation, it’s also a huge driver for new renewable energy projects.

Labour is looking to expand the UK’s solar and onshore wind capacity significantly by 2030, to treble the former and double the latter. It aims to quadruple offshore wind capacity. While green policy experts call this promise a ‘moon shot’, former Government Chief Scientific Advisor Sir Patrick Vallance supports the goal and believes it’s achievable. Britain needs to move with more urgency to meet climate goals. It’s perhaps only right that Labour starts as it means to go on: with undeniable ambition.

Labour has already made a confident step towards this goal by removing the previous de facto onshore wind ban introduced in 2015. The party has made several changes to the NPPF, making it far easier to obtain planning permission for new wind projects.

As previous proposals could be rejected by communities for virtually any reason, very few projects could move forward. But this isn’t the only change that Labour is making to support onshore wind. It is also bringing large onshore proposals into the Nationally Significant Infrastructure Regime.

In theory, this brings decisions for large-scale wind projects to the national level. With Labour determined to boost wind capacity considerably by 2030, mass approvals are far more likely. One of the most impressive proposals in Labour’s 2024 manifesto is the plan to create a state-owned energy company. Labour has pledged approximately £8.3 billion to the aptly named “Great British Energy”. It’s designed to help the country invest in low-carbon technologies while supporting an additional 8 GW of additional community energy by 2030.

To support a move towards cleaner energy, Labour will be increasing the windfall tax on oil and gas companies. Though the move from 75% to 78% is minimal, the additional revenue will be allocated to pay for investment in clean technologies. Labour will refuse to issue new oil and gas licences to encourage a move away from non-renewable sources.

It’s difficult to say how feasible these goals are in practice. While Labour’s goals would have appeared far-fetched under previous planning guidelines, changes to the NPPF should make developers feel more optimistic about the future of onshore wind. With a significant budget set aside to make the UK more energy independent, it’s hoped there’ll be a major downward trend in the country’s eyewatering energy prices. The climate crisis is a shared global concern. Addressing it can work alongside economic growth, with many environmental endeavours creating decent jobs.

To support this point, Chancellor Rachel Reeves has stated that Labour will create more than 650,000 jobs with its green investment plans. As the country moves further toward net zero, it’s likely that this figure will increase even more.

I’ve been privy to the ins and outs of the renewables sector for several years, but it’s always tricky to predict how new policies will pan out in real time. The logistics of approving new renewable energy projects and connecting them to the Grid will take time to work out. But as developers face fewer roadblocks at the planning stage, they should have more confidence to kickstart new projects and contribute to net zero.

So, do I think that Labour can make its ‘moon shot’ manifesto a reality? Well, only time will tell, but I’m cautiously optimistic.