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UK uses inflated carbon price to shape energy policy, analysts say

High cost makes renewable projects appear much cheaper relative to gas-fired power stations
The Desnz paper suggests onshore and offshore wind and solar projects would have lower total lifetime costs than new gas-fired generators

The UK government is using a carbon price more than three times higher than its current price to help shape energy policy over the next two years, raising questions over its strategy to weaken the cost of pollution.

A paper published by the Department of Energy Security and Net Zero last week argued new wind and solar projects will be substantially cheaper than new gas-fired generation from 2025, using a carbon price of near £150 per tonne to underpin its analysis.

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