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Decarbonising the power sector

In October 2021, government set an ambitious target to decarbonise the power sector by 2035, subject to security of supply. At the same time, demand for electricity is expected to increase significantly as other sectors, such as transport and heating in buildings, switch to electricity to reduce emissions. Decarbonising, while also meeting increased demand, will require government to manage a range of complex challenges. These include ensuring there is the right mix of technologies; attracting investment in new generation, and modernising energy networks.

The Department for Business, Energy & Industrial Strategy (BEIS) is responsible for decarbonising the power sector as part of its overall responsibility for achieving net zero. This report will examine how BEIS is set up to achieve power sector decarbonisation while maintaining security of electricity supply, and affordability for consumers and taxpayers. It will consider:

  • government’s vision for a decarbonised power sector;
  • government’s understanding of what is required to achieve a resilient and decarbonised power sector, and
  • how government recognises and is managing risks to resilience and affordability in a decarbonised power sector.

The study complements and builds on our track record of reports on energy, environment and net zero issues.