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Cheap Power Might Win the War on Climate

Gavin Tait calls himself an early adopter.

He’s 69, lives in Glasgow, and a decade ago took a lump sum from retirement and went all in. Solar panels. A home battery. A heat pump.

No-brainer, he thought. Save cash. Save the planet. Win-win.

It worked. At first. The house stayed warm, bills dropped, life was good. Then Russia invaded Ukraine. Energy prices spiked. The magic vanished.

Last winter? Gavin switched off the green tech. He turned his old gas boiler back on.

“It just didn’t stack up economically.”

The math is brutal: he’s paying nearly 27p for electricity, but his gas boiler runs for less than 6p per kWh.

That’s over four times the price. His battery is tiny—a meager 1.5 kWh bought when money was tight—and useless against this shock. His wife likes it hot, cranking the thermostat to 23 degrees. Heat pumps struggle at those temperatures. Gas? No sweat.

He knows the tech works better. Efficiency-wise, the pump wins easily. Three units of heat for one of energy? Beautiful. But not if every unit costs a fortune.

Gavin isn’t alone. A summer survey by Censuswide found two-thirds of heat pump owners saw their heating costs go up. Not down.

This isn’t just bad luck. It’s structural.

Critics argue the UK government has fixated on the wrong metric. They care about making electricity clean, not cheap. But electricity is only ~10% of our total emissions. Transport and heating are 40%.

By obsessing over the grid, ministers have arguably made the switch more expensive for ordinary people.

Enter the grid problem.

Sir Dieter gives the numbers. The UK’s peak demand is about 45 gigawatts. We used to cover that with roughly 60GW from coal, gas, and nuclear. Steady. Simple.

Now? We need close to 120GW to account for renewables and the backups needed when the wind stops or the sun hides.

The system is growing. It is complex. And it is bleeding money.

Network charges are soaring as we build pylons. There are balancing costs, like paying wind farms to shut off because there is too much power and nowhere to put it. Subsidies added 10% to average bills for years.

Then there’s the resource curse. The UK is rich in offshore wind. Bad news for wallets. Good for stability, sure—but offshore wind is expensive engineering. Unlike solar, which got cheaper thanks to global mass production, wind turbines are bespoke giants. Steel costs? Up. Rare earths? Up. Interest rates? Up.

Solar is cheap now, but British winters are dull. Wind carries the load when demand is highest, but at a premium.

Have we actually cut emissions, or just exported them?

Paper says UK emissions are down 50% since 1 UK’s global footprint. Prof Kevin Anderson says if you count what we import (mostly from places that burn coal like crazy) and aviation, the drop is more like 20%.

The UN guidelines say one thing. The atmosphere cares about another.

But the real killer isn’t carbon math. It’s the pricing mechanism.

UK electricity markets pay everyone the same rate per unit. That rate? Set by the most expensive generator needed to meet demand at that specific moment. Usually gas.

So even when your power is coming from wind and solar—which cost almost nothing to produce after construction—you pay the gas price. Because that’s how the auction works. Irony.

Politics has fractured along these lines.

In 2019, Theresa May’s Net Zero 2050 target sailed through Parliament. Consensus. Today? Kemi Badenoch calls it impossible. Reform UK calls it “Net Stupid Zero.” Even the Green Party’s Zack Polanski says the current path fails ordinary people. The SNP wants a fair transition. Plaid Cymru dropped its 2035 target.

Yet, polling shows four in five Britons still believe climate change is a priority. Even Conservative voters care.

What they hate is the bill.

Nine out of ten adults say cost of living is critical. Energy is a top pressure point.

Enter Tony Blair. The former PM isn’t subtle. His institute argues for Cheap Power 2030 instead of Clean Power 2030.

The logic is stark. Cheaper electricity accelerates adoption of EVs and heat pumps. Faster adoption drops emissions. End of story.

But here is the trap. Fossil fuels look cheap only because they don’t pay for the mess they leave behind. Climate damage. Health issues. Property loss. If we price carbon honestly? Everything gets more expensive.

My bills go up, Sir Dieter warns. My standard of living goes down.

The Office of Budget Responsibility says failing to act will cost more in the long run. But long run doesn’t help a household in winter trying to pay for gas or green heat.

If the UK pushes through high-cost decarbonization and crushes public support, other countries won’t follow. They’ll use us as a warning label. See that mess? Don’t go there.

Yet the clock is ticking. The UN Secretary General says every key indicator is flashing red. The Earth is absorbing more heat than ever.

We know it needs to be done. We know it costs money. The question isn’t about feasibility. It’s about survival. Can governments convince the public to pay for their own future?

Maybe. Maybe not.

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