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01/12/2020

Electrification Needed Across The Economy To Meet Net Zero Goal -SSE

Practically every area of the economy will need to be electrified in order to achieve net zero by 2050, SSE Chief Executive, Alistair Phillips-Davies has said.

Responding to the Prime Minister's Ten Point Plan for a Green Industrial Revolution, the energy provider said that "from heating our homes to the cars we drive and the factories powering our industries – electrons will be king".

In a letter to the PM, Chancellor, COP26 President and Minister for Energy and Clean Growth, SSE Chief Executive, Alistair Phillips-Davies, continued: "There will be many milestones on the route to 2050 but an important one is when the GB power system can be decarbonised – for it must come earlier if the rest of the economy is to hit their targets.

"The good news is this is eminently achievable with a clear target in sight. We believe our power system should be aiming to be net zero by 2040 and today we've written to the UK Government, alongside other energy companies, calling for a clear date to focus minds on the job in hand.

"We welcome their leadership on the Ten Point Plan for a Green Industrial Revolution, and the detailed work going on across government to deliver a net zero economy by 2050.

"Ahead of COP26 in Glasgow next year we believe setting a target for a net zero power system by 2040 will demonstrate the UK's ambition ahead of the negotiations crucial to achieving our climate change targets. The ‘right' date should be informed by robust analysis, and consider broad stakeholder views – but the key point is to set a date.

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"We've seen others like the President-elect in the US, China, the EU, Japan and South Korea make big commitments and an ambitious target from the UK will by equally as influential.

"Just as enshrining net zero into law and committing to phase out coal showed leadership on the international stage, setting a date for the electricity sector decarbonisation, will give clear direction and encourage others to follow.

"Coupled with this is that it is even more important that the Government quickly puts in place policies needed to support it. A sustainable market design to drive renewables investment at lowest cost; a transformational change to the transmission network to connect more offshore wind; the CCUS and hydrogen infrastructure in and around industrial clusters to support firm low carbon power; and, underpinning it all, robust carbon pricing to steer the cost-effective investment needed.

"Carbon pricing has been a key reason why UK electricity emissions fell by over 63% between 2012 and 2019 alone. A consistent, robust carbon price has also helped unlock so much long-term investment in low-carbon power generation that power generated by renewables overtook fossil fuel power generation for the first time in British history in the first quarter of 2020.

"Continued robust carbon pricing on electricity will incentivise the deployment of low carbon generation, market dispatch of upcoming gas-fired generation with Carbon Capture and Storage (CCS) projects and the blending of low carbon hydrogen with gas-fired generation.

"Further forward it can incentivise 100% hydrogen use in gas-fired generation, and importantly drive negative emissions to facilitate the delivery of a net zero economy.

"The electricity sector will be the backbone of our net zero economy and we, alongside many others, are up for the challenge of decarbonising power the power system earlier. That's why we, alongside National Grid ESO, BP, Shell, Drax and Sembcorp have asked the UK Government to consult on a date for a net zero power system by the Budget next year, with a target date to be confirmed in the UK's upcoming Net Zero Strategy next summer.

"This commitment would send a signal to the rest of the world that the UK intends to maintain its leadership position on climate and to build a greener, more resilient economy."

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