A new study from the UK National Energy System Operator claims that, as a share of GDP, energy costs are set to fall from 10% of GDP today to 5-6% of GDP by 2050 if the transition to a low-carbon system is well-managed, based on NESO’s heavily renewable based Future Energy Scenarios. The new NESO study is quite a complex, looking to the significant change that is planned and what the costs would be. Perhaps unsuprisingly, there was some media confusion over what it was saying, with headlines asking ‘would net zero cost householders £500 p.a?’ So what does NESO actually say? While it accepted that there would be major costs, peaking at about £460bn by 2029 in some scenarios, it claimed that continuing as at present would also cost and not just in terms of climate impact. As Edie noted, the UK’s energy system is currently importing fossil fuels; some £50bn was spent in 2024, equivalent to 2% of GDP, with £27bn attributable to road fuel, the remainder being split evenl...
In a spirited overview of nuclear prospects, Prof. Steve Thomas from Greenwich University says that ‘despite a major public relations push in the media and with policymakers for new nuclear, the anticipated nuclear revival will not happen because of the fundamentals of the technology in terms of cost, construction time, and reliability. Commercial financiers will remain very reluctant to fund these projects if any of the risk falls on them. Nuclear projects also take far too long before a return on investment can begin to be earned, typically more than 15 years from investment decision to first power’. Small modular Reactors (SMRs) are sometimes seen as the way ahead, but Arnie Gundersen , a former nuclear industry executive with 50 years of experience managing 70 nuclear projects says ‘Despite all the headlines and billions in taxpayer subsidies, an SMR will never be built—not in time to matter, and not at a price that makes sense’. He adds ‘I once b...