The reNEWS Podcast

RenewableUK's new CEO on the political challenges facing wind

Stephen Dunne Season 1 Episode 9

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0:00 | 25:30

Tara Singh is two months into her new role as chief executive of the UK's main renewables industry trade group RenewableUK. On the sidelines of WindEurope 2026 in Madrid, she sat down with reNEWS editor Stephen Dunne for a wide-ranging interview setting out her priorities in the job.

SPEAKER_00

Welcome to the Renews podcast with me, Stephen Dawn.

SPEAKER_01

I write an offense for the spectator saying uh the right shouldn't see wind as women, and I think that's my shorthand for saying it's really dangerous in the current world to presume that just a form of getting energy is associated with a particular set of values.

SPEAKER_00

So I'm joined by Tara Singh, two months into the job of the CEO of Renewable UK. Tara, you're very welcome to the Renews podcast.

SPEAKER_01

Thank you, I'm so excited to be here.

SPEAKER_00

Well, we're in Wind Europe here in Madrid. How have you found uh your first big industry conference?

SPEAKER_01

Oh, I absolutely love it. Like it's just buzzing. It's firstly, it's enormous. Just going around all the stands took me most of yesterday. Um, and I think it's just nice to see such a broad spread of our members here. So we had um Minister Michael Shanks here and Finton from Nisso giving uh a bit of a uh a tough time from all our members in the UK pavilion giving them a QA yesterday. It was just it was great to see the energy levels actually. So yeah, I'm loving it.

SPEAKER_00

Well, as I say, you're two months into the role. Okay. Keen to sort of understand your priorities and what you want to achieve from the position, and maybe use this as an opportunity to tell the industry and your members, you know, what your key areas of focus will be.

SPEAKER_01

Well, I I think I'd start by saying obviously, I mean, it may not be obvious, but um we're a member organization first and foremost, so we have around 470 members from the biggest international developers you can think of through to boutique developers, we've got offshore, we've got onshore, we've got um supply chain again from massive cable companies through to kind of you know one or two man or woman bands, um, ports, the whole, you know, everything you can think of do it on an offshore wind and flex as well, increasingly. Um so for me it's what do our members need? And I think um they're very supportive of the government, they're very um excited by the commitment to future auctions for renewables, but really we need that stability, so we need that kind of continual pipeline of auctions, we need certainty on things like connections reform, we need continued pressure on planning, and how do we get that certainty? We need political support, and I think we all know how fragile politics is now, especially with um the kind of ongoing energy and cost of living crises we face. So, what can we be doing in a really contested political environment to make the case for renewables in a way that resonates with all different political parties?

SPEAKER_00

And how do you think you're gonna navigate that pretty sticky wicket if you think about it? You got the government who are committed to renewables and holding firm and doubling down on that commitment, but you've got the Conservatives who are perhaps wavering on what was a commitment to renewables in the last administration from the pressure from the right and reforms approach. Very contested political terrain at the moment, and renewables is right at the centre of the battleground, particularly around cost of living. How are you and Renewable UK and the industry going to navigate that?

SPEAKER_01

Yeah, look, I um I wrote an op-ed for the spectator saying uh the right shouldn't see wind as work, and I think that's my shorthand for saying it's really um dangerous in the current world to presume that just a form of getting energy is associated with a particular set of values. And I think all our members are very committed to climate action, as as indeed am I. But I also make the case that even if climate action is further down your list, if you worry about energy security, if you worry about bill stability, and particularly if you want jobs and industrial growth, you have to back renewables. And I my personal view is that we win this argument in two ways. So I think the first is bottom-up. If you think of all the jobs that we're creating, so I think we have 2,000 supply chain companies, 160 factories across 70 constituencies. We have, I think today in the wind industry, 55,000 jobs that were more than double to 2013. We've invested 100 billion pounds in offshore wind alone in the past whatever 25 years, but the next five years in offshore wind alone is another 100 billion. So I think making that local case on jobs, and if you see the kind of um local leadership, even of uh right-leaning parties, they are very supportive of those jobs. So I think that's the first way, the bottom-up approach. But I think we also need a I guess top-down fact-based conversation because um I think it's a bit like someone saying, Oh, my house is much cheaper than yours because they bought it in 1990. And I often feel with the energy debate that everyone's anchored their heads on um gas prices from 1995, and actually, if you look at gas prices even before the current crisis, and if you look at the cost of new gas generation, it's really expensive. And I did a bit of playing around, and I thought, even if you take off the carbon price, which you know some politicians said they want to do, and a medium gas price scenario, offshore wind is cost competitive, and onshore renewables under every gas price scenario, under every carbon price scenario, is unbelievably good value for money. So I think we just need to help that reality-based conversation that in the world we're in, what is the best bet to take for the future?

SPEAKER_00

I suppose just to push back a little bit, to play devil's advocate, if the right would say on the first point around jobs, that the renewables industry hasn't created and hasn't delivered on the level of jobs it's promised over the years, and certainly it's as it's been touted, what would you say to that?

SPEAKER_01

I think for me, and like I said, we've got 55,000 jobs already, we're going to double that to 2030. You can see some massive investment coming in. So, kind of we've got the um Sematomo Cable Factory coming, we've got, you know, JDR, uh, you've just seen from Vestus an announcement. Um, I think there was always this approach of a sector deal with government, which is the wind industry can deliver jobs and investment, provided there is that kind of constant pipeline of auctions, there is de-risking of grid and connections, there's planning reform. And I think the honest truth is we've had a little bit of a stopstart with that from governments, and I think with the current government they've really doubled down, and you can really see the result. So for me, it's um what can we do together with government to deliver jobs and investment because we can't just do stuff by ourselves. And I think floating is a really good example of that because unless we get the port investment and the pipeline of auctions, then we will not get that massive industrial opportunity for the future.

SPEAKER_00

I might come back to the pipeline in a minute on your second point around price. Again, to play devil's advocate on this, I mean, do those figures include system costs? Because that's a very contested terrain now where a lot of people who are in favour of oil and gas and continuing with fossils point to whether it be curtailment costs, great expansion costs, delays, and so on and so forth. I mean, how is renewables gonna fight that battle? Because it's something that is lacking in the public debate.

SPEAKER_01

Yeah, it's a really good question. This is why I saved my interview with you for a couple of months, because I knew you'd be tough. Um uh no, I think um uh Aurora and Beringa have done some really interesting reports on this. Um I think Aurora was saying that uh they looked at everything, including systems cost, capacity market, and they found that at a price of £94 a megawatt hour, this was on central gas price scenarios from January, not today's crisis levels, offshore wind was good value for the consumer. And that included looking at constraints, it included looking at balancing. Um, one of the things that is not often considered is that renewables dampen the wholesale price, and when you look at that, that often offsets some of these systems' costs. I think the constraints cost is a really good question because a lot of that depends on the grid. So um LCP Delta did a really interesting report, I think, about a month or two ago, and they found that constraint costs will fall by 60% once the grid is built out. So I think there's a little bit of a lag between building the generation and building the grid. Um I think there's some interesting stuff that came out yesterday from the government. I confess I have not read the whole reform national pricing document. I'm being, you know, too busy socializing here, but I will be reading it. But one of the things that struck me was they were talking about are there ways at looking at how we cite demand? Because I think NISO said that 20% of existing um data centre capacity could be located in Scotland. And we we were doing some kind of back in the envelope numbers on that. Um, but I think that could, you know, potentially halve constraint costs if you did that.

SPEAKER_00

I mean the you mentioned gas, I mean the the gas prices there there's no uh suggestion that the UK government may look at unlinking, delinking the gas price from the electricity price. Some renewables folk I've spoken to here in Madrid express a little bit of concern about that for various reasons. What is the position on renewables around that issue?

SPEAKER_01

Uh the best way to decouple the power price and the gas price is to build more renewables. So we're here in Spain. Um, at the time of the Russian Ukraine crisis, gas set the power price in Spain 75% of the time. Today it's 15% of the time because they've had such a rapid expansion of wind, solar, and batteries. I think from the UK perspective, what I always think about is um we build out the renewables. Again, I think NISO's analysis is that if we build in line with clean power by 2030, then gas will only set the power price 30% of the time versus around 85% today. So build out the renewables. I think we're very supportive of contracts for difference because that provides a stable price for consumers even when the wholesale price spikes. Very supportive of having a voluntary process for generators who don't yet have CFDs to access that, and I think the government's going to be consulting on that soon, which is great. Um, I think one thing we wouldn't support is any moves around a strategic reserve for gas, because you know we have a power system built on marginal pricing, because that is the signal that you um are having pressure between supply and demand, and that is the signal which drives investment in the things which reduce that pressure. So I think we have to be a little bit careful on some of those elements, but uh but the government seems to be going in the right direction from my perspective.

SPEAKER_00

Politically, maybe to go back to that, the picture for renewables right now is very positive. The Labour administration has been bar maybe one or two hiccups like every government. I would imagine the renewables industry would say they've been very uh supportive and it's been a really strong administration. What are the elements though that the Labour administration at the moment needs to work on?

SPEAKER_01

Well, I actually take a step back. I think um we've had 15 years of support for offshore wind, um including from some quite reading right-leading governments, and I think onshore has been a little bit bumpier, and we were really pleased when Labour removed the ban, but I think we've had consensus for a long time in the UK, and one of my jobs is to make sure we try and rebuild some of that because I feel it has fractured from some parties which aren't Labour. So I think we've had a really positive environment, and and Labour have kind of lent into that. Um, I actually think our members, as you said, they they're really supportive of the government. AR7 was you know record-breaking. Um, great that they're going to be doing AR8 soon. Brilliant that they reformed the planning rules to get onshore renewables back into England and Wales. I think probably the one area where we need a little bit more closer collaboration is connections reform. Um, and actually, uh that that's no criticism of the government or indeed NESO or OffGem. We're really supportive of the direction of travel with this strategic spatial energy plan. It's just the transition has been a little bit messy. And I think for us, if you've got projects which already have CFDs or that want to bid into future rounds, we need some more certainty on how those gate two offers will actually process or give them.

SPEAKER_00

You are listening to the Renews Podcast. For breaking news or to access our exclusive market intelligence on the global renewable sector, subscribe at renews.biz. Now, back to the show. Give us a sense of what your members are saying about gay two, you know, specifically what the concerns are and how they're navigating that uncertainty.

SPEAKER_01

So we've had um uh delayed offers, we've had um uh dates changed, uh, we've had poor data quality, so even if you get offers, there's some annexes that tell you the price that you don't get. Um, and I think that's been a real challenge actually. You can't take FID unless you know what your um gate, you know, what your connection date will be, and indeed the price you're gonna pay for it. So we have price increases as well. Um and I think for people bidding in, they need to have a signed grid offer, right? So this is a real issue. I think the good news is the government's recognised it. There's been a silver command and a gold command set up where the kind of the great and the good from Niso off-gen Desnes and the industry are trapped in a room together trying to process some of this out. Um, I think also we've had probably too many batteries in the queue, um, by which I mean there's a lot of speculative offers from what we can tell, because you don't really need that much skin in the game to join the Q Jesse planning. So I think there was a letter from Desnes last week, two weeks ago, setting out potentially some reforms around requiring deposits from um from anyone who wants to join the queue, because I think that will weed out some of those um speculative batteries. Do we think more is needed? I I think potentially. Um, it's like I said, we've got projects which are ready to build, which have CFDs, which don't yet have the certainty they need. So I think the more we can do to double down, the better.

SPEAKER_00

Do you think it'll have an impact on AR8 and particularly around the acceleration of AR8, which on the face of it again was a positive, but actually if you actually strip away the layers and you look at the Gay 2 process, actually going a little bit earlier on AR8 might actually increase the uncertainty because some of the Gay 2 offers might not come out until you know later in the year, next year. So, do you think we might see some impact on AR8 in terms of the level of entries? Because developers are just don't have that certainty to be able to bid in?

SPEAKER_01

It's a great question, and one that was asked yesterday. So we had um Minister Shanks and also Finton from Nisso um trapped at the pavilion getting questions from our members, and that was exactly what someone asked. And they said they were very alive to this issue and they were confident they can work it out. So that was the view from the top.

SPEAKER_00

Ming Yang, I mean, it's one of the buzz topics at the moment. Obviously, the government has made a decision around uh national security grounds, haven't outlined the reasons for it. Ming Yang is, you know, still saying its doors open for discussions. I mean, you obviously represent the UK industry. I think the reaction probably falls into two categories: those that are supportive of the UK government's decision and those that are slightly concerned because of the dynamic barring Mingyang from the UK might create in the supply chain around particularly floating wind and the availability of other options. What's your and the industry's sort of official view, if you like, of the whole situation, not just Mingyang, but about other potentially Asian suppliers potentially supplying into the UK?

SPEAKER_01

Yeah, look, I think um uh on Min Yang, as you said, National Security Matter for Government. So if this is a government view, of course we'll support it. Um I think more generally um there is a really important balance to be struck because uh our members want to see turbine competition because that helps with pricing, and they also want to see turbine innovation. You know, turbines are floating, larger turbines, because again that helps with cost. Um, at the same time, we want to see jobs and investment in the UK, and it's really important that there are some places in the world who might have undue pressure on local supply chains, and I think we would always want um term manufacturers to be working in consort with the UK supply chain and in concert with our members. So I think from my perspective, anything the government can do to support greater um competition, but also to make sure that we respect and develop the UK supply chain. That's the the important balance for our members.

SPEAKER_00

And maybe just close out on the politics again, which is your, you know, you you have a background as we were talking beforehand uh in previous administrations, so I'm keen to try and understand as an Irish fella, right, uh looking at the UK political situation, one of the things I detect from a lot of renewables developers and and the supply chain is this you mentioned the pipeline of allocation rounds. You know, this year we'll have AR8. The current administration looks on rocky ground politically at the moment. There will be an election at some point in a couple of years. The opinion polls would suggest a drastic change in the makeup of a future government. There is a sense among your members that the good times with CFD rounds, regular annual rounds, might end pretty soon. What do you think about when you look forward that as you come into this role and are likely to be in this role as this transition happens? What's your view of that medium-term political environment?

SPEAKER_01

Yeah, look, I think um our members are very clear that they want and need new K to be politically neutral. And what I always say is I'm not concerned about political parties per se. My concern is what are voters thinking and how do we respond to that as industry? Because that is a lot of where this is coming from. And I think the good news is that um voters of all political parties support net zero. It's just not top of the list because they're so worried about cost of living. Um, and we've had kind of a almost a perma energy crisis for 15 years, and that is what people are responding to, but it's driven by gas, not renewables. I think More in Common is a really fascinating polling organization. They did some polling pre-the-current Iran crisis, and they found that the public tends to divide in two camps when they look at energy prices. If you lean right, you tend to blame government, and that becomes a shorthand for net zero because there's just a sense of we don't really understand what government's doing, why are prices so high. If you lean left, you tend to blame business, and you say, again, I don't really understand why bills are so high, someone must be profiteering. And I think our job as an industry is to make very clear that the crisis is driven by gas, renewables is the best way to get out of the crisis, that we are responsible companies that are delivering jobs and investment and working in harmony with nature and local communities. We it is incumbent on us to prove that case. And if we do prove that case, then I'm confident we will get the political support we need, but we can't sit back and and and wait for everyone to come to us. It's our job to go out there and make the case.

SPEAKER_00

Do you think looking back, the renewables industry maybe hasn't been as strong making its case in that's in that area?

SPEAKER_01

Uh look, I I think the industry's done a really good job. I mean, this is why we're we're the second biggest wind market in the world. Um uh and like I said, renewables are popular. For me, it's more there's been a bit of a global vibe shift, and I think there has reached a point where in lots of different European countries the public feel just frustrated with where the economy is, and that has made politics become more polarized. And we're also living in this social media world where it's much easier to have a kind of click than a thoughtful 30-minute podcast with a kind of trade press expert, right? And I think we have to potentially change how we communicate and the kind of messages we land in order to win in that world.

SPEAKER_00

And I mean, on that point, as you know, politics is polarized. How when you know when I look at the landscape and the different political entities, I I wonder how the industry is going to land those points with, you know, a government that might have reform members, a government that might have some of the more conservative types that are frankly anti-renewables. How in a polarised environment are we gonna is the renewables industry gonna make that point and make uh gains?

SPEAKER_01

Yeah, I think for me it's the the right messages, the right um facts and the right voices. So if you think of the right messages, um I think climate action is so important for all our members, it's very motivating, it's something that I'm personally committed to. But clearly there are some parties who are less concerned about that, and for that you have to lean into arguments around energy security. So I think um, you know, I'm supportive of the North Sea, but under the best industry scenarios, it can supply half of our net zero gas demand in 2050. So the the North Sea is not a solution by itself. So then it becomes okay, what will replace it? Um, some parties are looking at fracking. I tried that in government with number 10. Let me tell you, it is really unpopular, and I think the resource is very uncertain. So it's an uncertain bet on the future. So then, okay, what are you left with is LNG. I mean, I think we all realise given what the second fossil fuel crisis in five years, that's not a good bet either. Not for the majority of your fuel. So then what's left is I mean, nuclear. I think again, I'm I'm uh supportive of nuclear, but I think SMRs will take 15 years. As a two-gigawatt maximum, that's you know how many data sensors we have. Is it 40 gigawatts of demand? So, you know, it's it's important, but it's not a solution by itself. So then where are you left with? And it's got to be renewables. And I think we want to have that fact-based conversation because I think if you help politicians understand the different ways you can solve the energy crisis, really renewables are the best answer you come to. And I always say the state with the most renewables is Texas. Um I don't I don't think you have to be a really committed climate campaigner to recognise that renewables are good value for your economy.

SPEAKER_00

But what happens if they don't want to listen? You look at the US on a serious point. The US is going through this whole scenario right now. Energy security is a real issue along the eastern seaboard, but the US administration's decided it doesn't want offshore wind, it doesn't really want other renewables, even though, logically speaking, as you've just laid out, they are the best option for energy security to a certain extent. So what if the UK gets a government that just doesn't want to listen?

SPEAKER_01

It's a great point, and if I'm honest, one of the things I'm slightly worried about is a little bit of complacency from some of the industry I talk to where they say, Oh, ex-Party has said they're gonna tear up CFDs, but they're just campaigning. When they get in and they govern, they'll have a different view. I think what we realise over time politicians is you have to give them an off-ramp early because otherwise they will do what they say. Of course they will, because they're trying to appeal to their voters. And I think one of the things that we are talking to is the investment community because some of the policies that different parties have would be very damaging, not just to investment in renewables, which right now they say they don't care about, but actually investment in general. So if you look at um Spain, they um they said they were going to tear up feed-in tariffs about 15 odd years ago, and what you saw was um 10 years of a pause investment in renewables. Well, maybe certain parties wouldn't care, but you also saw a cost of capital increase in everything the government was doing: telecoms, water, rail, gas, because investors looked at the country and thought, we can't trust what you're saying. And I think you know, that is not a good place for the UK to be in. I think no one wants to be Liz Truss-esque. Uh, and again, our job is to kind of get the investor community together and say to certain parties, even if you're worried about renewables, doing it this way would be so damaging for that trust in Britain as an investment hub. It's just not worth it. And I think you know that that again that's incumbent on us. So I think for me, where there's policy which is very damaging, we will call it out. Um, where there is areas of alignment, we'll try and lean into them. And I think there are other ways of doing things as well, like um again, PPAs is a really interesting area. I think there might be parties who are nervous about CFTs, but PPAs could be a different way of trying to secure clean energy for steel or the automotive industry. So we're really open to working with parties on different models um depending on where they philosophically are.

SPEAKER_00

Well, Tara, you have a tough time ahead of you. I wish you all the best. And thanks for being on the podcast.

SPEAKER_01

Lovely speaking to you Stephen Pixar.

SPEAKER_00

The Renews Podcast was produced and edited by me, Stephen Dunn. Click subscribe wherever you get your podcast to make sure you never miss an episode. For more exclusive market intelligence on the renewable sector, see renews.biz.