UK energy team hosts insightful breakfast seminar on energy trilemma

Posted: 28/10/2024

Earlier this month, members of Penningtons Manches Cooper’s UK energy team, partners John Doherty, Mona Patel, James Hallas, and Tim Johnson, senior associate Hannah McIlwraith, and associates Richard Raban-Williams and James Jolly, convened for the latest energy trilemma breakfast at the firm’s London office.

The event was part of a planned series of seminars for clients and contacts on issues related to the energy transition and sustainability, security of supply, and affordability.

This session focused on the implications of the recent change in the UK government on the energy trilemma, sparking a series of thought-provoking and varied discussions. 

Below are some of the key takeaways: 

Green energy initiatives
The new government’s green energy initiatives, while commendable, are seen as highly aspirational. Achieving the 2030 targets will be a significant challenge. 

Strategic renewable energy security
The team emphasised the need for a strategic and geographical approach to the UK’s future renewable energy security. This would involve maximising solar and wind power generation opportunities at various strategic points across the UK. 

Financial implications of the energy transition
With no new oil and gas licences being granted in the North Sea, coupled with ambitious electric vehicle targets, the energy transition will come at a high financial cost in terms of reduced tax revenues for the government. 

Role of GB Energy
There was a consensus that the newly proposed corporate vehicle, GB Energy, will need to take a leading role and adopt a long-term perspective to encourage investment in the sector. 

Anticipated disputes
We are seeing (and can expect to continue seeing) disputes related to the government’s initiatives, especially in the context of oil and gas licences (requiring environmental impact assessments to factor in the full effects of the proposals, including ‘Scope 3’/user emissions of greenhouse gases) and planning disputes over proposed developments for solar and wind farms (which now have central government support). 

For more insights on the government’s energy policies, read an overview of the Great British Energy Bill here. 

The team plans to host another conversation in the new year. If you are interested in attending, please get in touch to receive an invitation. 

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