Kurdish Policy Analysis

 LONDON/SULAYMANIYAH, April 1 (Kurdish Policy Analysis) — Britain must urgently “reset” its energy strategy or risk locking itself into high costs, industrial decline and growing energy insecurity, a new report has warned, as debate intensifies over how countries balance climate goals with economic realities.

The report by the Tony Blair Institute for Global Change argues that the UK’s current approach—focused heavily on rapid decarbonisation targets—has overlooked a central objective: delivering abundant, affordable and secure energy.

While Britain has made significant progress in cutting emissions from electricity generation, the system has become “increasingly costly, inflexible and politically contested,” reflecting deeper structural challenges in the energy mix.

At the core of the problem is Britain’s growing dependence on imported energy. Once a net exporter, the country now relies heavily on imports, with about 43% of its energy needs met from abroad in 2024, exposing it to volatile global markets and rising costs.

The report highlights how gas continues to set electricity prices most of the time, meaning households and industries remain vulnerable to price shocks, even as renewable capacity expands.

Costs, industry, and public pressure

Rising energy bills have had widespread economic and social consequences. Surveys during the 2022 energy crisis showed nearly 80% of UK households reduced heating usage, while millions fell into fuel poverty or debt.

High electricity prices are also undermining Britain’s industrial base, particularly in energy-intensive sectors such as steel and chemicals, where competitiveness depends on affordable power.

The think tank warns that without reform, current policies risk deterring investment and weakening long-term growth, with critics arguing the system prioritises “clean” energy over energy that is also cheap and reliable.

A call for a strategic reset

The proposed “reset” includes a shift toward technological innovation, grid reform, long-term gas supply stability, and a more balanced energy mix that includes nuclear, renewables and flexible backup systems.

It also suggests reconsidering restrictions on domestic oil and gas production to improve energy security and reduce import dependency—recommendations that have already sparked political backlash.

The UK government has defended its current clean power strategy, insisting it remains the best route to lowering bills and achieving long-term energy independence.

Kurdish perspective: Lessons for the Kurdistan Region

The debate in Britain carries important lessons for the Kurdistan Region of Iraq, where energy policy faces similar tensions between affordability, security and sustainability.

Like the UK, the Kurdistan Region is navigating a transition—though from a different starting point. While Britain struggles with high costs in a decarbonising system, the Kurdistan Region remains heavily dependent on fossil fuels, particularly natural gas for power generation.

However, both face a shared challenge: energy security. Just as the UK has become increasingly reliant on imports, the Kurdistan Region depends on internal political stability, regional pipelines, and export routes that are often subject to geopolitical disruption.

A key takeaway for policymakers in Sulaymaniyah and across the region is the importance of balance. Britain’s experience suggests that pursuing environmental goals without ensuring affordability and system resilience can trigger economic strain and public backlash.

For the Kurdistan Region, this could translate into:

• Investing early in grid infrastructure and storage before scaling renewables
• Avoiding over-reliance on a single energy source
• Ensuring energy reforms are tied to economic growth and industrial development

As global energy systems evolve, the Kurdish region has an opportunity to “leapfrog” some of the structural issues now confronting advanced economies like Britain.

Global implications

The report underscores a broader shift in global energy thinking: climate policy is increasingly being judged not only by emissions reductions, but by its ability to deliver economic growth, resilience and public acceptance.

“The hardest challenges… will be solved not by deployment targets alone, but by sustained technological and system innovation,” the report concludes.

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