Savings of GBP 25-45bn (EUR 29-53bn) could be realised if the UK continues to invest in low-carbon technologies, according to the Committee on Climate Change (CCC).
In its report on UK electricity market reform, the CCC says the savings could reach £100bn if gas prices continue to rise. It also calls for the government to publish strategies for the further development of offshore wind, including setting out investment plans to 2030.
On offshore wind, the report represents something of a u-turn for the CCC. In a 2011 report into the development of a European supergrid, it described the UK's plans to develop 18GW of offshore wind by 2020 as "a big gamble". It had said that while encouraging and making use of the UK's huge offshore wind potential made sense, there were questions over cost and reliability.
CCC chair Lord Deben said: "In order to secure maximum economic benefit for the UK, it is crucial that the government gives certainty to investors by legislating to chart a clear course well beyond 2020. Only then will we be able to insure against the risk of much higher future energy prices, enhance Britain's energy sovereignty and protect ourselves against dangerous climate change."