IEA Cost of Net Zero analysis: comment
Analysis by the Institute of Economic Affairs (IEA) on the cost of net zero: comment
By Jess Ralston
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Commenting on analysis by the Institute of Economic Affairs (IEA) on the cost of net zero [1], Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit (ECIU) said:
"Nobody has a crystal ball on costs of fossil fuels, but history tells us that oil and gas prices are volatile and at the mercy of actors like Putin. The recent gas crisis drove the UK to spend over £180bn [2], and Treasury and homeowners alike would struggle to afford a repeat in the event of a future conflict or price spikes.
“Accelerating the roll out of British renewables and net zero technologies like heat pumps means greater energy security. With every turn of a wind turbine and heat pump installed the UK is less reliant on foreign energy imports. Renewables that we already have on the system lowered wholesale power prices by around a quarter in 2024 [3], a trend which will continue as more renewables reduce the amount of time we have gas setting the price."
Notes to editors:
1. The IEA analysis is published on Monday 12 January at 22:30.
2. ECIU: https://eciu.net/media/press-releases/2025/budget-cost-of-energy-crisis-exceeds-nhs-englands-annual-health-spending
3. ECIU: https://eciu.net/media/press-releases/2025/analysis-growth-in-british-renewables-cutting-electricity-prices-by-up-to-a-quarter
For more information or for interview requests:
George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: george.smeeton@eciu.net