How the dirtiest power station in western Europe switched to renewable energy


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Drax Biomass Conversion accelerates renewable energy by replacing coal with wood pellets, sustainable forestry feedstock, and piloting carbon capture and storage, supporting the UK grid, emissions cuts, and a net-zero pathway.

 

Key Points

Drax Biomass Conversion is Drax's shift from coal to biomass with CCS pilots to cut emissions and aid UK's net-zero.

✅ Coal units converted to biomass wood pellets

✅ Sourced from sustainable forestry residues

✅ CCS pilots target lifecycle emissions cuts

 

A power station that used to be the biggest polluter in western Europe has made a near-complete switch to renewable energy, mirroring broader shifts as Denmark's largest energy company plans to end coal by 2023.

The Drax Power Station in Yorkshire, England, used to spew out millions of tons of carbon dioxide a year by burning coal. But over the past eight years, it has overhauled its operations by converting four of its six coal-fired units to biomass. The plant's owners say it now generates 15% of the country's renewable power, as Britain recently went a full week without coal power for the first time.

The change means that just 6% of the utility's power now comes from coal, as the wider UK coal share hits record lows across the national electricity system. The ultimate goal is to stop using coal altogether.

"We've probably reduced our emissions more than any other utility in the world by transforming the way we generate power," Will Gardner, CEO of the Drax Group, told CNN Business.

Subsidies have helped finance the switch to biomass, which consists of plant and agricultural matter and is viewed as a promising substitute for coal, and utilities such as Nova Scotia Power are also increasing biomass use. Last year, Drax received £789 million ($1 billion) in government support.

 

Is biomass good for the environment?

While scientists disagree over the extent to which biomass as a fuel is environmentally friendly, and some environmentalists urge reducing biomass use amid concerns about lifecycle emissions, Drax highlights that its supplies come from from sustainably managed and growing forests.

Most of the biomass used by Drax consists of low-grade wood, sawmill residue and trees with little commercial value from the United States. The material is compressed into sawdust pellets.

Gardner says that by purchasing bits of wood not used for construction or furniture, Drax makes it more financially viable for forests to be replanted. And planting new trees helps offset biomass emissions.

Forests "absorb carbon as they're growing, once they reach maturity, they stop absorbing carbon," said Raphael Slade, a senior research fellow at Imperial College London.

But John Sterman, a professor at MIT's Sloan School of Management, says that in the short term burning wood pellets adds more carbon to the atmosphere than burning coal.

That carbon can be absorbed by new trees, but Sterman says the process can take decades.

"If you're looking at five years, [biomass is] not very good ... If you're looking at a century-long time scale, which is the sort of time scale that many foresters plan, then [biomass] can be a lot more beneficial," says Slade.

 

Carbon capture

Enter carbon capture and storage technology, which seeks to prevent CO2 emissions from entering the atmosphere and has been touted as a possible solution to the climate crisis.

Drax, for example, is developing a system to capture the carbon it produces from burning biomass. But that could be 10 years away.

 

The Coal King is racing to avoid bankruptcy

The power station is currently capturing just 1 metric ton of CO2 emissions per day. Gardner says it hopes to increase this to 10,000 metric tons per day by the mid to late 2020s.

"The technology works but scaling it up and rolling it out, and financing it, are going to be significant challenges," says Slade.

The Intergovernmental Panel on Climate Change shares this view. The group said in a 2018 report that while the potential for CO2 capture and storage was considerable, its importance in the fight against climate change would depend on financial incentives for deployment, and whether the risks of storage could be successfully managed. These include a potential CO2 pipeline break.

In the United Kingdom, the government believes that carbon capture and storage will be crucial to reaching its goal of achieving net-zero greenhouse gas emissions by 2050, even as low-carbon generation stalled in 2019 according to industry analysis.

It has committed to consulting on a market-based industrial carbon capture framework and in June awarded £26 million ($33 million) in funding for nine carbon capture, usage and storage projects, amid record coal-free generation on the British grid.

 

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Drought, lack of rain means BC Hydro must adapt power generation

BC Hydro drought operations address climate change impacts with hydropower scheduling, reservoir management, water conservation, inflow forecasting, and fish habitat protection across the Lower Mainland and Vancouver Island while maintaining electricity generation from storage facilities.

 

Key Points

BC Hydro drought operations conserve water, protect fish, and sustain hydropower during extended heat and low inflows.

✅ Proactive reservoir releases protect downstream salmon spawning.

✅ Reduced flows at Puntledge, Coquitlam, and Ruskin/Stave facilities.

✅ System relies on northern storage to maintain electricity supply.

 

BC Hydro is adjusting its operating plans around power generation as extended heat and little forecast rain continue to impact the province, a report says.

“Unpredictable weather patterns related to climate change are expected to continue in the years ahead and BC Hydro is constantly adapting to these evolving conditions, especially after events such as record demand in 2021 that tested the grid,” said the report, titled “Casting drought: How climate change is contributing to uncertain weather and how BC Hydro’s generation system is adapting.”

The study said there is no concern with BC Hydro being able to continue to deliver power through the drought because there is enough water at its larger facilities, even as issues like crypto mining electricity use draw scrutiny from observers.

Still, it said, with no meaningful precipitation in the forecast, its smaller facilities in the Lower Mainland and on Vancouver Island will continue to see record low or near record low inflows for this time of the year.

“In the Lower Mainland, inflows since the beginning of September are ranked in the bottom three compared to historical records,” the report said.

The report said the hydroelectric system is directly impacted by variations in weather and the record-setting, unseasonably dry and warm weather this fall highlights the impacts of climate change, while demand patterns can be counterintuitive, as electricity use even increased during Earth Hour 2018 in some areas, hinting at challenges to come.

It noted symptoms of climate change include increased frequency of extreme events like drought and intense storms, and rapid glacial melt.

“With the extremely hot and dry conditions, BC Hydro has been taking proactive steps at many of our South Coast facilities for months to conserve water to protect the downstream fish habit,” spokesperson Mora Scott said. “We began holding back water in July and August at some facilities anticipating the dry conditions to help ensure we would have water storage for the later summer and early fall salmon spawning.”

Scott said BC Hydro’s reservoirs play an important role in managing these difficult conditions by using storage and planning releases to provide protection to downstream river flows. The reservoirs are, in effect, a battery waiting to be used for power.

While the dry conditions have had an impact on BC Hydro’s watersheds, several unregulated natural river systems — not related to BC Hydro — have fared worse, with rivers drying up and thousands of fish killed, the report said.

BC Hydro is currently seeing the most significant impacts on operations at Puntledge and Campbell River on Vancouver Island as well as Coquitlam and Ruskin/Stave in the Lower Mainland.

To help manage water levels on Vancouver Island, BC Hydro reduced Puntledge River flows by one-third last week and on the Lower Mainland reduced flows at Coquitlam by one-third and Ruskin/Stave by one quarter.

However, the utility company said, there are no concerns about continued power delivery.

“British Columbians benefit from BC Hydro’s integrated, provincial electricity system, which helps send power across the province, including to Vancouver Island, and programs like the winter payment plan support customers during colder months,” staff said.

Most of the electricity generated and used in B.C. is produced by larger facilities in the north and southeast of the province — and while water levels in those areas are below normal levels, there is enough water to meet the province’s power needs, even as additions like Site C's electricity remain a subject of debate among observers.

The Glacier Media investigation found a quarter of BC Hydro's power comes from the Mica, Revelstoke and Hugh Keenleyside dams on the Columbia River. Some 29% comes from dams in the Peace region, including the under-construction Site C project that has faced cost overruns. At certain points of the year, those reservoirs are reliant on glacier water.

Still, BC Hydro remains optimistic.

Forecasts are currently showing little rain in the near-term; however, historically, precipitation and inflows show up by the end of October. If that does not happen, BC Hydro said it would continue to closely track weather and inflow forecasts to adapt its operations to protect fish, while regional cooperation such as bridging with Alberta remains part of broader policy discussions.

Among things BC Hydro said it is doing to adapt are:

Continuously working to improve its weather and inflow forecasting;
Expanding its hydroclimate monitoring technology, including custom-made solutions that have been designed in-house, as well as upgrading snow survey stations to automated, real-time snow and climate stations, and;
Investing in capital projects — like spillway gate replacements — that will increase resiliency of the system to climate change.

 

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Sunrun and Tesla Unveil Texas Power Plant

Sunrun-Tesla Virtual Power Plant Texas leverages residential solar, Tesla Powerwall battery storage, and ERCOT demand response to enhance grid resilience, cut emissions, and supply backup power via a coordinated distributed energy resources network.

 

Key Points

A Texas VPP using residential solar and Tesla Powerwall to aid ERCOT with grid services resilience, and less emissions.

✅ Aggregates Powerwall storage for ERCOT demand response.

✅ Enhances grid reliability with distributed energy resources.

✅ Cuts emissions by shifting solar to peak and outage periods.

 

In a significant development for renewable energy and grid resilience, Sunrun and Tesla have announced a groundbreaking partnership to establish a distributed power plant in Texas. This collaboration represents a major step forward in harnessing solar energy and battery storage, with advances in affordable solar batteries helping to create a more reliable and sustainable power system. The initiative aims to address the growing demand for clean energy solutions while enhancing grid stability and resilience in one of the largest and most energy-dependent states in the U.S.

The new distributed power plant, a joint venture between Sunrun, a leading residential solar provider, and Tesla, renowned for its advanced battery technology and electric vehicles, will leverage the strengths of both companies to transform how energy is generated and used. The project will deploy Tesla's Powerwall battery systems alongside Sunrun's solar panels to create a network of interconnected residential energy storage units. This network will function as a virtual power plant, aligned with emerging peer-to-peer energy sharing models that are capable of providing electricity back to the grid during periods of high demand or outages.

Texas, with its vast and growing population, has faced significant energy challenges in recent years. The state’s power grid, managed by the Electric Reliability Council of Texas (ERCOT), has experienced strain during extreme weather events and high demand periods, and instances of Texas wind curtailment during grid stress, leading to concerns about reliability and stability. The partnership between Sunrun and Tesla seeks to address these concerns by introducing a more flexible and resilient energy solution.

The distributed power plant will consist of thousands of residential solar installations, each equipped with Tesla Powerwall batteries, reflecting the broader trend of pairing storage with solar across the U.S. as it scales. These batteries store excess solar energy generated during the day and release it when needed, such as during peak demand times or power outages. By connecting these systems through advanced software, the project will create a coordinated network of distributed energy resources that can respond dynamically to fluctuations in energy supply and demand.

One of the key benefits of this distributed approach is its ability to enhance grid reliability. Traditional power plants are centralized and can be vulnerable to disruptions, whether from extreme weather, technical failures, or other issues. In contrast, a distributed power plant spreads the generation and storage capacity across numerous locations, a principle echoed by renewable power developers pursuing multi-resource projects today, reducing the risk of widespread outages and increasing the overall resilience of the power grid.

Additionally, the project will contribute to the reduction of greenhouse gas emissions. By increasing the use of solar energy and reducing reliance on fossil fuels, and amid ongoing work to improve solar and wind technologies, the distributed power plant supports Texas’s climate goals and contributes to broader efforts to combat climate change. The integration of renewable energy sources into the grid helps to decrease carbon emissions and promote a cleaner, more sustainable energy system.

The partnership between Sunrun and Tesla also underscores the growing role of technology in transforming the energy landscape. Tesla's Powerwall battery systems represent some of the most advanced energy storage technology available, and amid record solar and storage growth nationwide this decade they showcase the capability to store and manage energy efficiently. Sunrun’s expertise in residential solar installations complements this technology, creating a powerful combination that leverages the latest advancements in clean energy.

The project is expected to deliver several benefits to both individual homeowners and the broader community. Homeowners who participate in the program will have access to solar energy and battery storage at reduced costs, thanks to the economies of scale and innovative financing options provided by Sunrun and Tesla. Additionally, they will have the added security of backup power during outages, contributing to greater energy independence and resilience.

For the broader community, the distributed power plant offers a more reliable and sustainable energy system. The ability to generate and store energy at the residential level reduces the strain on traditional power plants and enhances the overall stability of the grid. Furthermore, the project will contribute to local job creation, as the installation and maintenance of solar panels and battery systems require skilled workers.

As the project moves forward, Sunrun and Tesla will work closely with local stakeholders, regulators, and utility providers to ensure the successful implementation and integration of the distributed power plant. Collaboration with these parties will be essential to addressing any regulatory, technical, or logistical challenges and ensuring that the project delivers its intended benefits.

In conclusion, the partnership between Sunrun and Tesla to create a distributed power plant in Texas represents a significant advancement in clean energy technology and grid resilience. By combining solar power with advanced battery storage, the project aims to enhance grid stability, reduce emissions, and provide reliable energy solutions for homeowners. As Texas continues to face energy challenges, this innovative initiative offers a promising model for the future of distributed energy and highlights the potential for technology-driven solutions to address pressing environmental and infrastructure issues.

 

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Scotland’s Wind Farms Generate Enough Electricity to Power Nearly 4.5 Million Homes

Scotland Wind Energy delivered record renewable power as wind turbines and farms generated 9,831,320 MWh in H1 2019, supplying clean electricity for every home twice and supporting northern England, according to WWF data.

 

Key Points

Term for Scotland's wind power output, highlighting 2019 records, clean electricity, and progress on decarbonization.

✅ 9,831,320 MWh generated Jan-Jun 2019 by wind farms

✅ Enough to power 4.47 million homes twice in that period

✅ Advances decarbonization and 2030 renewables, 2050 net-zero goals

 

Wind turbines in Scotland produced enough electricity in the first half of 2019, reflecting periods when wind led the power mix across the UK, to power every home in the country twice over, according to new data by the analytics group WeatherEnergy. The wind farms generated 9,831,320 megawatt-hours between January and June, as the UK set a wind generation record in comparable periods, equal to the total electricity consumption of 4.47 million homes during that same period.

The electricity generated by wind in early 2019 is enough to power all of Scotland’s homes, as well as a large portion of northern England’s, highlighting how wind and solar exceeded nuclear in the UK in recent milestones as well, and events such as record UK output during Storm Malik underscore this capacity.

“These are amazing figures,” Robin Parker, climate and energy policy manager at WWF, which highlighted the new data, said in a statement. “Scotland’s wind energy revolution is clearly continuing to power ahead, as wind became the UK’s main electricity source in a recent first. Up and down the country, we are all benefitting from cleaner energy and so is the climate.”

Scotland currently has a target of generating half its electricity from renewables by 2030, a goal buoyed by milestones like more UK electricity from wind than coal in 2016, and decarbonizing its energy system almost entirely by 2050. Experts say the latest wind energy data shows the country could reach its goal far sooner than originally anticipated, especially with complementary technologies such as tidal power in Scottish waters gaining traction.

 

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Bomb Cyclone Leaves Half a Million Without Power in Western Washington

Western Washington Bomb Cyclone unleashed gale-force winds, torrential rain, and coastal flooding, causing massive power outages from Seattle to Tacoma; storm surge, downed trees, and blocked roads hindered emergency response and infrastructure repairs.

 

Key Points

A rapidly deepening storm with severe winds, rain, flooding, and major power outages across Western Washington.

✅ Rapid barometric pressure drop intensified the system

✅ Gale-force winds downed trees and power lines

✅ Coastal flooding and storm surge disrupted transport

 

A powerful "bomb cyclone" recently hit Western Washington, causing widespread destruction across the region. The intense storm left more than half a million residents without power, similar to B.C. bomb cyclone outages seen to the north, with outages affecting communities from Seattle to Olympia. This weather phenomenon, marked by a rapid drop in atmospheric pressure, unleashed severe wind gusts, heavy rain, and flooding, causing significant disruption to daily life.

The bomb cyclone, which is a rapidly intensifying storm, typically features a sharp drop in barometric pressure over a short period of time. This creates extreme weather conditions, including gale-force winds, torrential rain, and coastal flooding, as seen during California storm impacts earlier in the season. In Western Washington, the storm struck just as the region was beginning to prepare for the winter season, catching many off guard with its strength and unpredictability.

The storm's impact was immediately felt as high winds downed trees, power lines, and other infrastructure. By the time the worst of the storm had passed, utility companies had reported widespread power outages, with more than 500,000 customers losing electricity. The outages were particularly severe in areas like Seattle, Tacoma, and the surrounding communities. Crews worked tirelessly in difficult conditions to restore power, but many residents faced extended outages, underscoring US grid climate vulnerabilities that complicate recovery efforts, with some lasting for days due to the scope of the damage.

The power outages were accompanied by heavy rainfall, leading to localized flooding. Roads were inundated, making it difficult for first responders and repair crews to reach affected areas. Emergency services were stretched thin as they dealt with downed trees, blocked roads, and flooded neighborhoods. In some areas, floodwaters reached homes, forcing people to evacuate. In addition, several schools were closed, and public transportation services were temporarily halted, leaving commuters stranded and businesses unable to operate.

As the storm moved inland, its effects continued to be felt. Western Washington’s coastal regions were hammered by high waves and storm surges, further exacerbating the damage. The combination of wind and rain also led to hazardous driving conditions, prompting authorities to advise people to stay off the roads unless absolutely necessary.

While power companies worked around the clock to restore electricity, informed by grid resilience strategies that could help utilities prepare for future events, challenges persisted. Fallen trees and debris blocked access to repair sites, and the sheer number of outages made it difficult for crews to restore power quickly. Some customers were left in the dark for days, forced to rely on generators, candles, and other makeshift solutions. The storm's intensity left a trail of destruction, requiring significant resources to address the damages and rebuild critical infrastructure.

In addition to the immediate impacts on power and transportation, the bomb cyclone raised important concerns about climate change and the increasing frequency of extreme weather events. Experts note that storms like these are becoming more common, with rapid intensification leading to more severe consequences and compounding pressures such as extreme-heat electricity costs for households. As the planet warms, scientists predict that such weather systems will continue to grow in strength, posing greater challenges to cities and regions that are not always prepared for such extreme events.

In the aftermath of the storm, local governments and utility companies faced the daunting task of not only restoring services but also assessing the broader impact of the storm on communities. Many areas, especially those hit hardest by flooding and power outages, will require substantial recovery efforts. The devastation of the bomb cyclone highlighted the vulnerability of infrastructure in the face of rapidly changing weather patterns and water availability, as seen in BC Hydro drought adaptations nearby, and reinforced the need for greater resilience in the face of future storms.

The storm's impact on the Pacific Northwest is a reminder of the power of nature and the importance of preparedness. As Western Washington recovers, there is a renewed focus on strengthening infrastructure, including expanded renewable electricity to diversify supply, improving emergency response systems, and ensuring that communities are better equipped to handle the challenges posed by increasingly severe weather events. For now, residents remain hopeful that the worst is behind them and are working together to rebuild and prepare for whatever future storms may bring.

The bomb cyclone has left an indelible mark on Western Washington, but it also serves as a call to action for better preparedness, more robust infrastructure, and a greater focus on combating climate change to mitigate the impact of such extreme weather in the future.

 

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Fuel Cell Electric Buses Coming to Mississauga

Mississauga Fuel Cell Electric Buses advance zero-emission public transit, leveraging hydrogen fuel cells, green hydrogen supply, rapid refueling, and extended range to cut GHGs, improve air quality, and modernize sustainable urban mobility.

 

Key Points

Hydrogen fuel cell buses power electric drivetrains for zero-emission service, long range, and quick refueling.

✅ Zero tailpipe emissions improve urban air quality

✅ Longer route range than battery-electric buses

✅ Hydrogen fueling is rapid, enabling high uptime

 

Mississauga, Ontario, is gearing up for a significant shift in its public transportation landscape with the introduction of fuel cell electric buses (FCEBs). This initiative marks a pivotal step toward reducing greenhouse gas emissions and enhancing the sustainability of public transport in the region. The city, known for its vibrant urban environment and bustling economy, is making strides to ensure that its transit system evolves in harmony with environmental goals.

The recent announcement highlights the commitment of Mississauga to embrace clean energy solutions. The integration of FCEBs is part of a broader strategy to modernize the transit fleet while tackling climate change. As cities around the world seek to reduce their carbon footprints, Mississauga’s initiative aligns with global trends toward greener urban transport, where projects like the TTC battery-electric buses demonstrate practical pathways.

What are Fuel Cell Electric Buses?

Fuel cell electric buses utilize hydrogen fuel cells to generate electricity, which powers the vehicle's electric motor. Unlike traditional buses that run on diesel or gasoline, FCEBs produce zero tailpipe emissions, making them an environmentally friendly alternative. The only byproducts of their operation are water and heat, significantly reducing air pollution in urban areas.

The technology behind FCEBs is becoming increasingly viable as hydrogen production becomes more sustainable. With the advancement of green hydrogen production methods, which use renewable energy sources to create hydrogen, and because some electricity in Canada still comes from fossil fuels, the environmental benefits of fuel cell technology are further amplified. Mississauga’s investment in these buses is not only a commitment to cleaner air but also a boost for innovative technology in the transportation sector.

Benefits for Mississauga

The introduction of FCEBs is poised to offer numerous benefits to the residents of Mississauga. Firstly, the reduction in greenhouse gas emissions aligns with the city’s climate action goals and complements Canada’s EV goals at the national level. By investing in cleaner public transit options, Mississauga is taking significant steps to improve air quality and combat climate change.

Moreover, FCEBs are known for their efficiency and longer range compared to battery electric buses, such as the Metro Vancouver fleet now operating across the region, commonly used in Canadian cities. This means they can operate longer routes without the need for frequent recharging, making them ideal for busy transit systems. The use of hydrogen fuel can also result in shorter fueling times compared to electric charging, enhancing operational efficiency.

In addition to environmental and operational advantages, the introduction of these buses presents economic opportunities. The deployment of FCEBs can create jobs in the local economy, from maintenance to hydrogen production facilities, similar to how St. Albert’s electric buses supported local capabilities. This aligns with broader trends of sustainable economic development that prioritize green jobs.

Challenges Ahead

While the potential benefits of FCEBs are clear, the transition to this technology is not without its challenges. One of the main hurdles is the establishment of a robust hydrogen infrastructure. To support the operation of fuel cell buses, Mississauga will need to invest in hydrogen production, storage, and fueling stations, much as Edmonton’s first electric bus required dedicated charging infrastructure. Collaboration with regional and provincial partners will be crucial to develop this infrastructure effectively.

Additionally, public acceptance and awareness of hydrogen technology will be essential. As with any new technology, there may be skepticism regarding safety and efficiency. Educational campaigns will be necessary to inform the public about the advantages of FCEBs and how they contribute to a more sustainable future, and recent TTC’s battery-electric rollout offers a useful reference for outreach efforts.

Looking Forward

As Mississauga embarks on this innovative journey, the introduction of fuel cell electric buses signifies a forward-thinking approach to public transportation. The city’s commitment to sustainability not only enhances its transit system but also sets a precedent for other municipalities to follow.

In conclusion, the shift towards fuel cell electric buses in Mississauga exemplifies a significant leap toward greener public transport. With ongoing efforts to tackle climate change and improve urban air quality, Mississauga is positioning itself as a leader in sustainable transit solutions. The future looks promising for both the city and its residents as they embrace cleaner, more efficient transportation options. As this initiative unfolds, it will be closely watched by other cities looking to implement similar sustainable practices in their own transit systems.

 

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State-owned electricity generation firm could save Britons nearly 21bn a year?

Great British Energy could cut UK electricity costs via public ownership, investing in clean energy like wind, solar, tidal, and nuclear, curbing windfall profits, stabilizing bills, and reinvesting returns through a state-backed generator.

 

Key Points

A proposed state-backed UK generator investing in clean power to cut costs and return gains to taxpayers.

✅ Publicly owned investment in wind, solar, tidal, and nuclear

✅ Cuts electricity bills by reducing generators' windfall profits

✅ Funded via bonds or asset buyouts; non-profit operations

 

A publicly owned electricity generation firm could save Britons nearly £21bn a year, according to new analysis that bolsters Labour’s case to launch a national energy company if the party gains power.

Thinktank Common Wealth has calculated that the cost of generating electricity to power homes and businesses could be reduced by £20.8bn or £252 per household a year under state ownership, according to a report seen by the Guardian.

The Labour leader, Keir Starmer, has committed to creating “a publicly owned national champion in clean energy” named Great British Energy.

Starmer is yet to lay out the exact structure of the mooted company, although he has said it would not involve nationalising existing assets, or become involved in the transmission grid or retail supply of energy.

Starmer instead hopes to create a state-backed entity that would invest in clean energy – wind, solar, tidal, nuclear, large-scale storage and other emerging technologies – creating jobs and ensuring windfalls from the growth in low carbon power feed back to the government.

The Common Wealth report, which analysed scenarios for reforming the electricity market, said that a huge saving on electricity costs could be made by buying out assets such as wind, solar and biomass generators on older contracts and running them on a non-profit basis. Funding the measure could require a government bond issuance, or some form of compulsory purchase process.

Last year the government attempted to get companies operating low carbon generators, including nuclear power plants, on older contracts to switch to contracts for difference (CfD), allowing any outsized profits to flow back to taxpayers. However, the government later decided to tax eligible firms through the electricity generator levy instead.

The Common Wealth study concluded that a publicly owned low carbon energy generator would best deliver on Britain’s climate and economic goals, would eliminate windfall profits made by generators and would cut household bills significantly.

MPs and campaigners have argued that Britain’s energy companies should be nationalised since the energy crisis, even as coal-free records have multiplied and renewables still need more support, which has resulted in North Sea oil and gas producers and electricity generators making windfall profits, and a string of retail suppliers collapsing, costing taxpayers billions. Detractors of nationalisation in energy argue it can stifle innovation and expose taxpayers to huge financial risks.

Common Wealth pointed out that more than 40% of the UK’s offshore wind generation capacity was publicly owned by overseas national entities, meaning the benefits of high electricity prices linked to the war in Ukraine had flowed back to other governments.

The study found the publicly owned generator model would create more savings than other options, including a drive for voluntary CfDs; splitting the generation market between low carbon and fossil fuel sources at a time when wind and solar have outproduced nuclear, and a “single buyer model” with nationalised retail suppliers.

 

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