Energy Security Secretary highlights measures to bolster Britain’s long-term energy security and independence to foster a thriving, sustainable future.

The government unveiled ambitious plans to scale up affordable, clean, homegrown power and build thriving green industries in Britain, boosting the country’s energy security and independence, reducing household bills over the long term, and maintaining a world-leading position in achieving net zero.

Putin’s illegal invasion of Ukraine wreaked havoc on global energy markets, driving up wholesale prices and, by extension, the energy bills of homes and businesses in the UK and worldwide. 

The government has insulated households and businesses from the harshest impacts.

They cover almost half of a normal household’s winter energy bill and half of the wholesale energy prices for some firms.

After decades of reliance on the importation of expensive, foreign fossil fuels, the government is implementing a major transformation in our energy system towards cleaner, more affordable energy sources to power a greater portion of the UK using domestic resources.

In doing so, plans will fulfil the Prime Minister’s pledge to grow the economy across the nation, creating nearly half a million new green jobs by 2030, establishing a strategic advantage in new clean industries, and fostering export opportunities for UK businesses.

In addition to actions done by the government since 2021, the measures outlined today include:

  • Announcement of the first projects to go to the next round of talks for deploying the first Carbon Capture clusters in an industrial heartland. Additionally, the round for regions to apply for two additional future clusters has begun, and there will be an option to add additional projects to the first two clusters. These initiatives are in addition to the £20 billion in CCUS investment.
  • Initiating investment in the United Kingdom’s burgeoning floating offshore wind industry by introducing the £160 million fund to support port infrastructure developments, thereby securing the United Kingdom’s leadership position in this new technology.
  • As part of developing this new energy source, the Net Zero Hydrogen Fund will fund the first batch of new green hydrogen production projects.
  • With a budget of £205 million, launch the fifth phase of the UK’s world-leading scheme to encourage investment in renewable electricity. Contracts for Difference will build on the over £80 billion in levy-funded subsidies for renewable energy in the United Kingdom since 2010.
  • Simon Bowen will initially lead Great British Nuclear and Gwen Parry-Jones OBE as interim Chief Executive Officer. 
  • Reforming the planning process to expedite the construction of more energy infrastructure, such as solar power and offshore wind projects, to attract more investment.
  • A rebranded ECO+ will renovate 300,000 of the nation’s least energy-efficient homes to reduce household bills by expanding government funding for energy efficiency to an even greater number of people.
  • More than £380 million will be invested in the nationwide expansion of EV charging sites and infrastructure to assist in introducing electric vehicles.
  • Reducing Britain’s reliance on fossil fuels to heat buildings, the new £30 million Heat Pump Investment Accelerator aims to leverage £270 million in private investment to increase the production and supply of heat pumps in the UK. The Boiler Upgrade Scheme offers purchasers of heat pumps a £5,000 incentive and will be extended until 2028.
  • Increasing the capacity of UK Export Finance by £10 billion to enhance exports, notably those of the UK’s world-leading clean growth sectors.
  • Creating a stable climate where businesses can invest and expand during the transition to electric automobiles and sustainable aviation fuel.

Prime Minister Rishi Sunak stated: “When global energy sources are disrupted and weaponized by leaders like Putin, home bills increase, and global economic growth slows.

We have intervened to shelter them from its harshest effects by covering almost half the average energy expenditure. But we are also quickening to power Britain and safeguard our long-term energy security with cheaper, cleaner energy from Britain so that we can reduce energy prices and expand our economy.

This is why we are advancing plans to increase renewables, revive nuclear, and build new thriving industries such as carbon capture, which will create fantastic jobs across, provide new opportunities for British businesses at home and maintain our world-leading efforts to reach net zero.”

Secretary of energy security Grant Shapps said: “In the past year, we have witnessed what may occur when global energy supplies are disturbed, and a despot like Vladimir Putin uses energy as a weapon.

Access to affordable, abundant, and reliable energy is the cornerstone of a functioning economy, with our homes and companies dependent on it for future growth.

Following our record cost of living support this Winter, which continues, this strategy outlines how we will fix this problem in the long term to offer wholesale UK power costs that are among the cheapest in Europe while exporting our green growth knowledge to the rest of the globe.”

Jeremy Hunt, Chancellor of the Exchequer, stated: “The transformation of our energy system is now a question of climate change mitigation and national security. We must expedite the transition to cleaner, cheaper domestic energy sources to prevent future price surges.

By releasing billions of private capital through our Green Finance Strategy, we can generate more energy in the United Kingdom and develop new industries and employment that will last.

Since 2010, the United Kingdom has invested £198 billion in low-carbon energy through government subsidies, corporate investment, and consumer bill levies. We expect that approximately £100 billion will be invested privately in the UK’s energy revolution in the future. Additionally, the United Kingdom has smashed multiple records in the production of renewable electricity and is the global leader in offshore wind; the country is, therefore, in a good position to export its world-leading knowledge.

This will stimulate green growth domestically and internationally, and British enterprises will set the benchmark for a clean, secure, and prosperous future.

Building on our COP26 Presidency and our involvement in establishing the Global Biodiversity Framework, the United Kingdom will continue to lead international action to combat climate change and biodiversity loss in collaboration with our partners and fulfil our £11.6 billion International Climate Finance pledge.”