Power to the people: can energy policy rebuild Britain?

Andy Burnham started his new administration by saying that growth in energy would be linked to a broader ‘rewiring’ of the state. He represented, he said, a ‘circuit-breaker’. Ironically, the grid operator, NESO, has recently been given the power to impose widespread blackouts across the country when energy supplies run low.

‘When’, not ‘if’.

Let’s look at one area of energy use that the government is committed to. Rachel Reeves, in her previous position as chancellor, announced that Britain would have the fastest AI adoption in the G7. To do that, AI needs massive investment in data centres – designated in 2024 as critical national infrastructure on a par with energy, water and telecoms. Data centres do, of course, use up a lot of energy and water; they also rely heavily on telecoms infrastructure. For example, the UK uses around two billion litres of potable water per year to cool data centres – although to put that in perspective, UK’s water companies lose more than that per day due to leaking pipes.

With an environmental shift towards Net Zero, a number of data centres are having to rely on autarkic means to get power, with some planning to build their own gas-fuelled power stations to avoid the intermittency of wind-generation. Because they are seen as ‘indelibly’ connected to the climate emergency, many states in America have banned the construction of data centres altogether.

Some say we shouldn’t expect our access to energy to continue to grow regardless of the consequences. Why not travel less, insulate more, switch off, and buy more candles? But many are now sceptical about a Net Zero agenda that requires us all to cut back, and even Burnham has signalled a more pragmatic approach to North Sea oil and gas.

Ultimately, where is the extra energy-generating capacity coming from without new power stations, nuclear plants, coal mines, oil and gas fields? With Britain already having some of the highest industrial energy prices in the world, and demand for electricity set to rise sharply, can we secure affordable, reliable energy without totally abandoning our commitment to clean energy?

This session will explore whether we have the energy-generating capacity, the infrastructure, the will to satisfy the needs of a modern, future-focused, energy-intensive economy.