Solar and wind can be installed for just the maintenance costs of oil and gas power stations, and we should really be seeing the benefit of that in the UK.
However, because we allow ourselves to have energy prices dictated by world markets, the cheap solar and wind produced electricity is currently sold at the same price as that produced by oil and gas.
This is wrong, but politicians ignore it.
If we add more solar, wind, batteries and tidal energy, the UK’s cost of producing energy will be considerably lower (just the cost of maintenance of these installations and replacement after 40 years or so).
If the government encouraged this in the right way, the cost to consumers could be a fraction of pre-pandemic prices.
The UK has more than enough wind, tidal and solar energy to be entirely energy self- sufficient. Petrol and diesel will be necessary for a while as the changeover to electric vehicles takes place, and oil for making plastics (although hopefully in lesser quantities than previously.
However, we could rapidly move to a point of generating all electricity from these renewables, and after an initial capital expenditure, continue at an incredibly low cost.
So why wouldn’t we? Well, the constant refrain is that “these green costs are pushing up our bills”. Sadly, a concept pushed very hard by those who want to stay on an oil and gas-based economy (guess who), and backed by parts of the media (for much the same reasons).
This is of course visibly untrue. If we didn’t have wind and solar power producing significant power now (frequently 40% plus), then we would have been buying more oil and gas at the crazy prices set by world markets today. Bills would already be much higher.
The level of capital expenditure required will be large (although still much less than a nuclear future) and should not be paid for upfront by consumers, so there is a clear case here for the government to invest in the future of the country. Energy security is critical to national security, and we should not be in a position where we can be threatened and blackmailed by those trying to use fossil fuels as a weapon.
The government has many options. A Conservative government might give grants to private businesses to install tidal power schemes. Onshore wind could be relooked at and promoted. Offshore wind should be supported with grants. Grants to householders to install solar, batteries and air or ground source heat pumps would be a huge step in the right direction.
A Labour government might create a government owned energy production company, selling its energy to existing providers.
In either case the government should take steps to ensure that the huge cost savings reach the consumer.
There is of course the capital cost to consider, but there is no reason why the government should not recover this over the 40+ year life of the equipment.
The current government loves to cut costs and tell us there is no money for investment. They may do so from a genuine belief that is the case, but it comes from a misunderstanding of how money works. A misunderstanding that the media, and current terminology used by the media and politicians continues to push to consumers.
The government can spend as much money as it wants!