The role of the state in the Great British energy market

What is the state’s role in the Great British energy sector and how could it be extended to support decarbonisation objectives?  

The state already plays an important role in the industry but given the ambition to decarbonise the power sector quickly, and on a path to achieving economy-wide net zero emissions, we think the role of the state needs to go further.  

Working hand in hand with the private sector, the state could play four roles to successfully steer the Great British energy sector and address decarbonisation; as a planner, a developer, an investor and an enabler.

That’s the conclusion of a study Baringa conducted with innovation agency NESTA.

About the research

We combined our own research and analysis with extensive engagement with senior figures from across the energy industry.

We assessed three overarching problems that must be tackled:

1. The need for greater coordination and certainty

2. The need to pick up the pace

3. The need to ensure good value for money

We considered all energy delivered directly to businesses and customers, covering the following technologies:

1. Established low carbon power technologies, such as onshore wind, offshore wind, and solar photovoltaics.

2. Emerging low carbon technologies, such as hydrogen technologies, CCUS, SMRs, etc.

3. Transmission and distribution networks across energy vectors, including interconnectors and offshore grids.

Read the report to discover how the state could accelerate decarbonisation, and save costs while returning a greater proportion of benefits from the energy transition to citizens and enabling economic growth.

View the executive summary for industry and policy makers >

View the full report >