Over the past decade, the UK has directed £12.5 billion from energy bills to fossil fuel power plants as part of its "capacity market" scheme. The initiative, which ensures electricity supply during peak demand, has allocated 60% of its funding to fossil fuel power stations, drawing criticism for undermining the country’s renewable energy goals.
Environmental groups argue that the scheme’s reliance on fossil fuels is incompatible with the UK’s commitment to reaching net-zero carbon emissions by 2050. Doug Parr, Chief Scientist at Greenpeace UK, said: “It’s ludicrous that UK households are footing the bill for propping up polluting fossil fuel power plants while we’re supposed to be transitioning to cleaner energy. This system needs urgent reform.”
The capacity market, launched in 2014, is funded by charges added to consumer energy bills. While designed to secure grid reliability during high-demand periods, critics believe the scheme has disproportionately favored gas and coal plants over renewable energy technologies and battery storage solutions.
Government officials have defended the program, highlighting its role in maintaining energy security during winter demand spikes. However, calls are growing for a significant overhaul to align the scheme with the UK’s long-term climate and energy goals.
As household energy costs continue to rise, this revelation adds pressure on policymakers to redirect funding towards cleaner and more sustainable energy sources.
