The UK Government's recent budget announcement has disappointed proponents of hydropower in the UK, with the British Hydropower Association (BHA) stating that the Chancellor has missed a golden opportunity to support the UK’s strategic economic, employment and Net Zero ambitions by failing to fully back hydropower.
In a statement, the BHA expressed its extreme disappointment at the lack of foresight and financial backing for hydropower in the Chancellor’s spring budget.
A report by BiGGAR Economics, commissioned by the association, reveals staggering figures. In 2022 alone, hydropower production in the UK contributed to a £1.1 billion reduction in wholesale energy costs, translating to approximately £38.50 per household. With around 2GW of traditional hydropower already operational and the potential for an additional 1GW through new projects, the untapped potential of hydropower remains significant.
CEO of the British Hydropower Association, Kate Gilmartin, expressed bewilderment at the government's oversight: “It’s disappointing, frustrating and mystifying that the Chancellor has failed to ride a hydro wave which would help slash sky high consumer bills, create jobs, and help cut the UK’s carbon emissions.
“This was a golden opportunity to bring hydropower fully into the UK’s future, reliable, renewable energy mix and the government has failed to grasp it. As our new report from BiGGAR Economics shows, hydropower can help support the UK’s strategic ambitions, contribute to Net Zero, reduce reliance on energy imports and produce the most energy when demand is high, in winter.
“There’s still nothing in current government policy which brings forward renewable generation at anything less than five megawatts. Ministers are tunnel-focused on large scale generation connected at the transmission grid which doesn’t resolve local grid issues or enable local energy solutions that can really help reduce bills for consumers.”
The BiGGAR Economics report titled "The Socio-economic Impact of Hydropower in the UK" suggests that investing £5.5 billion over 15 years in expanding hydropower infrastructure could yield substantial economic benefits. This investment would not only create over 4000 jobs but also support billions in Gross Value Added (GVA) across various regions in the UK.
The British Hydropower Association has been proactive in advocating for hydropower as a critical component of the UK's energy strategy. In their recently published manifesto ahead of the general election, they call for policy changes that facilitate hydropower deployment, including adjustments to the Contracts for Difference (CfD) scheme and consideration of wider system benefits in energy cost evaluations.
