Octopus Energy plans to announce new onshore wind projects soon after the incoming Labour government lifted the ban on new wind farms in England. CEO Greg Jackson shared this in an interview, noting the strong interest from thousands of communities.
Renewable Energy Expansion
The Labour government aims to decarbonize the electricity system by 2030. Last week, it unveiled plans to accelerate renewable energy projects to increase the country’s renewable power capacity. “We’ve got thousands of communities contacting us about onshore wind,” Jackson said. “I expect we will be able to announce some projects in areas where people want them fairly soon.”
Jackson emphasized the need for further reforms in the country’s energy markets. He supported the former Conservative government’s proposal for location-based electricity pricing, which would charge consumers based on their proximity to generating sites. This method would incentivize local support for new developments. “The critical steps now are the market reforms that enable you to see regional pricing that allows you to invest in the right projects in the right places,” Jackson said.
Market Reforms and Community Benefits
Reforming wholesale markets to a more locational basis is expected to cut costs across regions. Zonal electricity pricing, already used in countries like Italy, Sweden, and Norway, could provide similar benefits in the UK.
Octopus Energy has a program to match communities wanting new wind projects with landowners willing to host turbines. This initiative aims to offer communities electricity at up to 50% lower costs. “If electricity is consumed close to where it is being generated, it should reflect those lower costs and provide cheap electricity to the communities that host turbines,” Jackson explained.
Octopus’ Energy Generation arm manages around 1.7 gigawatts of renewable power in Britain, worth £5 billion ($6.48 billion). The company also has projects in other countries, including Germany and the U.S. The lifting of the ban on onshore wind farms in England presents a significant opportunity for expansion and increased renewable energy production.
The policy shift by the Labour government marks a pivotal moment for renewable energy in the UK. Octopus Energy’s planned projects are set to boost local economies, reduce energy costs, and contribute to the goal of decarbonizing the electricity system by 2030.
Source: Reuters
