The government’s Department for Energy Security and Net Zero has revealed plans to scale up affordable, clean, homegrown power to boost the UK’s energy security and reduce household bills in the long-term. The government will deliver “a radical shift in our energy system towards cleaner, more affordable energy sources to power more of Britain from Britain”. It is said this will deliver on the prime minister’s promise to grow the economy across the country and support almost half a million new green jobs by 2030. The measures announced today include: Commitment to Carbon Capture Usage and Storage (CCUS). The first projects will be announced to progress to the next stage of the negotiations to rollout the first carbon capture clusters in the UK’s industrial heartlands. The round to apply for two future clusters has also been launched, and there will be an opportunity for further projects to be added. Kickstarting investment into the UK’s emerging floating offshore wind industry. A £160M fund to support port infrastructure ports has been launched. Backing the first tranche of new green hydrogen production projects. This will be done under the £240M Net Zero Hydrogen fund. Opening the fifth round of Contracts for Difference, the UK’s scheme to incentivise investment in renewable technology. This is backed by a budget of £205M and will now see Contracts for Difference bids held annually. Launching Great British Nuclear (GBN). The first job for GBN is to launch a competition to select the best Small Modular Reactor (SMR) technologies for development by autumn. Speeding up the planning process. Reforming the planning process will accelerate the building of more energy infrastructure including solar and offshore wind projects. Expanding energy efficiency support to more households. The Great British Insulation Scheme will upgrade 300,000 of the country’s least energy efficient homes. Investing over £380M in electric vehicle charging points and infrastructure. This will support the rollout of electric vehicles across the country.
Reducing Reliance on Fossil Fuels To Heat Buildings.
A new £30M Heat Pump Investment Accelerator has been designed to leverage £270M in private investment to boost manufacturing and supply of heat pumps in the UK. The Boiler Upgrade Scheme will be extended to 2028. Providing UK Export Finance with an extra £10bn capacity to boost exports. This includes exports from the clean growth sectors.M Building a stable environment for business. Enabling investment and growth in the transition to electric vehicles and sustainable aviation fuel. Meanwhile, the UK Infrastructure Bank (UKIB) has announced plans to invest up to £200M across two investment funds to accelerate the development and deployment of electricity storage technologies. The first is £75M committed on a match-funding basis to Gresham House Secure Income Renewable Energy & Storage LP (SIRES) alongside a £65M investment from Centrica. The second is a commitment of £125M on a match-funding basis to Equitix UK Electricity Storage Fund. The deals, which represent UKIB’s first investments in the electricity storage sector, could facilitate around 1300 jobs and will unlock at least a further £200M in match-funded private sector capital, acting as a catalyst for the sector and helping to build confidence among private investors. This week has also seen shadow secretary of state for climate change and net zero Ed Miliband call for the government to end its ban on onshore wind farms as a means of improving the country’s green energy credentials and energy security. Regarding the announcement of the government’s plan to drive investment into clean energy, 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.” Energy security secretary Grant Shapps said: “We have seen over the past year what can happen when global energy supplies are disrupted, and a tyrant like Putin uses energy as a weapon. “Access to cheap, abundant and reliable energy provide the foundation stone of a thriving economy with our homes and businesses relying on it to deliver our future prosperity. “Following our unprecedented cost of living support this winter, which continues, this plan now sets out how we fix this problem in the long term to deliver wholesale UK electricity prices that rank amongst the cheapest in Europe, as we export our green growth expertise to the world.” Chancellor of the exchequer Jeremy Hunt said: “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. “By unlocking billions of pounds of private capital through our Green Finance Strategy, we generate more of the energy we need in Britain and create new industries and jobs that are built to last.”