On Monday, the government announced that it would commit to doubling investment in clean energy industries, as part of its 10-year Industrial Strategy.
This “Clean Energy Superpower Mission”, underlines the government’s commitment to make the UK a global leader in clean energy.
Clean energy is one of 8 sectors, known as the IS-8, which the Industrial Strategy prioritises. These sectors are considered by the government to have the most potential for economic growth.
Emphasising clean energy as a government priority
Ed Miliband, Secretary of State for Energy Security and Net Zero, wrote that “the global transition to net zero calls for huge investment” in a variety of “frontier industries” within the sector.
These industries include: Wind (onshore, offshore and floating offshore), Nuclear Fission, Fusion Energy, Carbon Capture Usage and Storage (CCUS) including Greenhouse Gas Removals (GGRs), Hydrogen, and Heat Pumps.
Miliband continued that each of these “frontier industries” within the sector will benefit from “a doubling of current investment levels”, which will hopefully reach £30 billion overall by 2035.
The clean energy industry has already benefitted from over £40 billion in private investment since the Labour government was elected in July.
The plan notes that other industries within the clean energy sector, including “solar, bioenergy, storage including Long Duration Energy Storage, heat networks, and smart technologies”, are “vital”, but still not considered as part of these frontier industries.
Recent analysis from the Energy Transitions Commission and consultants Systemiq has found that 40 per cent of the solutions needed to move the economy to net zero are already cheaper than fossil fuels, or would be by 2030.
Key aspects of Clean Energy Plan
One major investment is a £700 billion increase in funding for Great British Energy Company, a new public company, which will “develop, invest in, build and operate clean energy projects and supply chains”.
This additional funding brings the government’s total public and private funding in clean energy supply chains to £1.7 billion.
Another major part of the plan is a new Workforce Strategy, which will be published by the Office for Clean Energy Jobs later this year. This will seek to transfer the UK’s existing energy workforce into the clean energy sector.
The government will also establish a new £1 billion Clean Energy Supply Chain Fund, overseen by GB Energy, which will be particularly focused on offshore wind supply chains.
The plans also included a £544 million Clean Industry Bonus for offshore wind developers aimed at supporting coastal industrial areas.
£13.2 billion for its Warm Homes Plan, to support the roll-out of heat pumps in British homes. The government will also soon launch its Heat Pump Accelerator Competition, which will give £30 million in grants to manufacturers investing in new heat pump capacity.
How have the Clean Energy plans been received?
The plans have been well-received by many within the energy industry, in key unions, and in think tanks.
Martin Pibworth, Chief Executive designate at SSE, welcomed the focus on clean energy, claiming: “It’s exactly the kind of commitment that gives industry the confidence to deliver at pace and scale”
Jon Butterworth, CEO of National Gas, also backed the plan, saying it “will position Britain as a world leader in technologies like hydrogen and carbon capture.”
The bosses of other major organisations also welcomed the news. These include E.ON UK, the Offshore Renewable Energy Catapult, the Trades Union Congress, GMB and Schneider Electric.
The Energy Transitions Commission’s chair Adair Turner responded to the announcements, saying: “We now need the right policies to enable other sectors of the economy to reach that tipping point, and to enable all countries to share in the economic opportunities created.”
Laith Whitwam, Senior Policy Adviser at the think tank E3G, also said: “This strategy cuts the sky-high electricity prices driven by gas dependency and gives British industry the shot in the arm it needs to lead the charge to a clean economy.”
Featured image via Michael Kobiela / Shutterstock.
