Government risks missing clean energy targets, NAO report warns

With attention focused on the recent energy crisis, the recently created Department for Energy Security and Net Zero (DESNZ) has made little progress with a long-term delivery plan for all electricity to be generated through clean energy sources, the report said.

DESNZ has taken on the responsibilities for energy security and net zero that were previously held by the Department for Business, Energy and Industrial Strategy. As BEIS, it had internally planned to have established a route to decarbonisation by 2035. However, because it was focusing attention on responses to high energy bills, the department scaled back its work on coordinating long-term power sector decarbonisation.

According to NAO, the lack of a delivery plan risks diminishing the confidence of industry stakeholders, who are said to be concerned about how the change and investment required across the energy sector will be brought together without a strategic vision. Similarly, the absence of a clear plan and the perception that there could be changes in government policies could deter external investors from providing funds for new infrastructure or lead them to increase the rates of return they require.