Government reaffirms commitments to long-term energy security and independence
Energy Security Secretary Grant Shapps has outlined a raft of measures designed to strengthen Britain's long-term energy security and independence by “scaling up affordable, clean, homegrown power.”
The government says its plans will help deliver on the Prime Minister’s promise to grow the economy across the country, supporting almost half a million new green jobs by 2030, creating a strategic advantage in new clean industries, and generating opportunities for UK businesses to export their expertise around the world.
The measures announced include:
“World leading” commitment to Carbon Capture Usage and Storage – The first projects will be announced to progress to the next stage of the negotiations to rollout the first Carbon Capture clusters in our industrial heartlands. The round for areas to apply for two additional future clusters has also been launched and there will be an opportunity for further projects to be added to the first two clusters. These announcements build on the £20 billion CCUS funding
Kickstarting investment into the UK’s emerging floating offshore wind industry by launching the £160 million fund to support port infrastructure projects, securing the UK’s leadership in this new technology.
Backing the first tranche of new green hydrogen production projects under the £240 million Net Zero Hydrogen Fund as part of development of this new power source.
Opening the fifth round of the UK’s world-leading scheme to incentivise investment in renewable electricity, backed by a budget of £205 million. Now being held annually, Contracts for Difference will build on the UK levy-funded support for renewable power since 2010 of around £80 billion.
Announcing Great British Nuclear, will initially be led by Simon Bowen as interim Chair and Gwen Parry-Jones OBE as interim Chief Executive Officer: with GBN’s first job to launch a new competition to select the best Small Modular Reactor technologies – one of the most advanced nuclear power technologies in the world – for development by Autumn.
Speeding up the planning process to attract investment – reforming the planning process to enable the building of more energy infrastructure including solar power and offshore wind projects more quickly.
Cutting household bills by expanding Government energy efficiency support to even more households - The Great British Insulation Scheme, a rebranded ECO+, will upgrade 300,000 of the country’s least energy efficient homes.
Investing more than £380 million into boosting EV charging points and infrastructure across the country to support the rollout of electric vehicles
Reducing our reliance on fossil fuels to heat our buildings – a new £30 million Heat Pump Investment Accelerator is designed to leverage £270 million private investment to boost manufacturing and supply of heat pumps in the UK. The Boiler Upgrade Scheme, which offers a £5,000 grant to anyone buying a heat pump, will be extended to 2028.
Providing UK Export Finance with an extra £10 billion capacity to boost exports, including from the UK’s world leading clean growth sectors.
Building a stable environment for businesses to invest and grow in the transition to electric vehicles and sustainable aviation fuel.
Prime Minister Rishi Sunak said, “When global energy supplies are disrupted and weaponised by the likes of Putin, we have seen household bills soar and economic growth slow around the world.
“We have stepped in to shield people from its worst impacts by helping to pay around half the typical energy bill. But we are also stepping up to power Britain and ensure our energy security in the long term with more affordable, clean energy from Britain, so we can drive down energy prices and grow our economy.
“That’s why we’re driving forward plans to boost renewables, revive nuclear and build new thriving industries like carbon capture, which will in turn create good jobs across the country, provide new opportunities for British businesses at home and abroad, and maintain our world-leading action to reach net zero.”
Chancellor of the Exchequer Jeremy Hunt added, “Transforming our energy system is no longer just about tackling climate change, it is also a matter of national security. To protect ourselves from future price spikes, we need to accelerate the move to cleaner, cheaper, home-grown energy.”
Ed Miliband MP, Labour’s Shadow Climate and Net Zero Secretary, responding to the announcement said, “What was billed as the government’s “green day” turns out to be a weak and feeble groundhog day of re-announcements, reheated policy, and no new investment.
“This confirms once and for all that, after thirteen years of failed energy policy, that Britain under the Conservatives will be stuck with higher energy bills, energy insecurity, lost jobs and climate delay.
“These announcements are most notable for their glaring omissions: no removal of the onshore wind ban which is costing families hundreds of pounds on bills, no new investment for energy efficiency which could cut bills and imports, no response to the Inflation Reduction Act which could help Britain win the global race for clean energy jobs.
“This is a government out of ideas, out of touch, and out of time. Only Labour has a mission to make Britain a clean energy superpower with a plan for zero-carbon power by 2030 and GB Energy, our publicly-owned energy company, which will cut energy bills, strengthen our energy security, and create hundreds of thousands of quality jobs across the country.”