Energy UK has set out detailed proposals and policies for the new Government in 2024, as the energy sector looks to work in partnership on delivery of its clean energy mission.
Mission Possible: The steps to make Britain a clean energy superpower groups these proposals into five areas – each crucial to fulfilling the Government’s clean energy ambitions.
Having led Britain’s world-leading progress in the development of clean energy and technologies as well as cuts in emissions, the energy sector welcomes the ambition shown by the Government and its potential to drive economic growth, ensure the country’s future energy independence, support a cleaner and healthier environment and improve people’s daily lives.
However, meeting the ambitious targets will require immediate and decisive action from the Government – removing barriers to progress, setting a clear strategic direction, and demonstrating the commitment to reform that is essential to bringing forward all the investment, expertise and innovation in the energy sector.
The five areas identified are:
- Achieving clean power by 2030 – refining and reforming the Contracts for Difference scheme as the main mechanism for delivering large renewable projects; making long-awaited decisions on nuclear, hydrogen, storage and carbon capture to provide the flexible and secure power to underpin a clean energy system; building infrastructure as well as power plants and tackling the delays caused by planning system and connections queue.
- Affordable energy bills and a sustainable retail market – A clean energy system powered by domestic sources will mean cheaper bills for homes and businesses but the Government needs to help customers in the meantime, providing better targeted support for those most in need and seeing how energy costs can be reduced for all households.
- Warmer homes and cleaner transport – cleaner heating systems, more energy efficient buildings and electrifying transport will all bring substantial social, economic and health benefits but progress in all these areas has been stymied by stop-start schemes and constant policy changes. Reforming and strengthening the raft of existing initiatives and support schemes will be central to increasing consumer demand and take-up of new technologies, developing supply chains and the roll-out of supporting infrastructure.
- A mission-led Government set up to succeed – existing organisations, structures and governance must work effectively to oversee plans and delivery and there will be important roles for GB Energy and for the newly established National Energy System Operator. A new body to advise on the delivery of new heating systems and energy efficiency should also be considered.
- Closer UK-EU cooperation on energy and climate – a lack of alignment with the respective Emissions Trading Schemes and the incoming Carbon Border Adjustment Mechanism threaten to undermine investment in clean energy and cost British businesses. Linking the two schemes, closer energy market trading arrangements and co-operation over the North Sea will lead to benefits for both sides.
Energy UK’s chief executive, Emma Pinchbeck said:
“Transforming our economy and improving our daily lives through clean, affordable homegrown power is something that both the Government and the energy sector see as an opportunity to be embraced. This mission will drive the new Government and bring jobs, investment and prosperity to all parts of the UK while also securing the country’s energy needs for the future.
“As we’ve set out today, there are many actions the Government can take in the first months of the new Parliament, and the sooner we get cracking, the sooner we reap the rewards. The Chancellor’s speech yesterday included some welcome first steps on planning reform. At a time of fierce global competition for green investment, clear commitment and decisive action from Government will help our industry to deliver on the aim of becoming a clean energy superpower.
“The Government needs to communicate the challenges and choices ahead in energy honestly and clearly to the public – but rapid delivery of the benefits of a clean energy system is the best way to demonstrate the prize on offer. We also need to look at how we can help make bills more affordable for all customers – especially after a tough few years caused by the international gas crisis – and underline that fairness in how costs and benefits are distributed will be the guiding principle for the energy mission.
“The investment and the expertise, the technology and the track record of delivery are all there. If the Government provides decisive and courageous leadership, shows the determination to tackle barriers and does the hard graft to streamline and coordinate regulation, policy, and strategy from the state – the private sector is champing at the bit to get on with the job”
Notes to editors
- Energy UK holds its Annual Conference on Tuesday 17 September 2024 where all of the above – and more – will be discussed and debated. More details are available on the EUK website.
- Today’s report builds on EUK’s previously published manifesto – Energy Matters: People, Power, Prosperity, which set out proposals for partnership between Government and the industry to increase investment, transform the economy and deliver the change society needs by pushing forward on the transformation of our energy system.
- Energy UK is the trade association for the energy industry with over 100 members – from established FTSE 100 companies right through to new, growing suppliers, generators and service providers across energy, transport, heat and technology. Our members deliver nearly 80% of the UK’s power generation and over 95% of the energy supply for 28 million UK homes as well as businesses. The sector invests £13bn annually and delivers nearly £30bn in gross value – on top of the nearly £100bn in economic activity through its supply chain and interaction with other sectors. The energy industry is key to delivering growth and plans to invest £100bn over the course of this decade in new energy sources. The energy sector supports 700,000 jobs in every corner of the country. Energy UK plays a key role in ensuring we attract and retain a diverse workforce. In addition to our Young Energy Professionals Forum, which has over 2,000 members representing over 350 organisations, we are a founding member of TIDE, an industry-wide taskforce to tackle Inclusion and Diversity across energy.