UK set on leaving fossil fuels behind and turning into clean energy superpower

With climate change breathing down the world’s neck alongside the cost of living crisis and energy security concerns, the United Kingdom (UK) is determined to accelerate its energy transformation, moving away from coal, oil, and gas to turbocharge its clean, green energy mission before the end of the decade.

Following the UK general election, which took place on July 4, 2024, leading to the Labour Party’s landslide victory, the opening of Parliament and the King’s Speech occurred on July 17, setting out the program of legislation that the new government will pursue in the forthcoming parliamentary session focused on bolstering the economy and improving the living standards of working people.   

“Securing economic growth will be a fundamental mission. My Government will seek a new partnership with both business and working people and help the country move on from the recent cost of living challenges by prioritising wealth creation for all communities. My Ministers will establish an Industrial Strategy Council. It is my Government’s objective to see rising living standards in all nations and regions in the United Kingdom,” highlighted King Charles III, Britain’s sovereign since the death of his mother Queen Elizabeth II.

The package of more than 35 bills and draft bills is bent on growing the economy by speeding up the building of houses and infrastructure, improving transport, creating more jobs, and securing clean, green energy to make Britain a clean energy superpower by 2030. One of these bills is expected to assist in setting up Great British Energy, a publicly owned clean-power company focused on boosting energy security, creating jobs, and building supply chains across the UK. In addition, the new government plans to introduce legislation to help unlock investment in energy infrastructure, support sustainable aviation fuel production, and bolster the water regulator’s powers.    

King Charles III further emphasized: “My Government recognises the urgency of the global climate challenge and the new job opportunities that can come from leading the development of the technologies of the future. It is committed to a clean energy transition which will lower energy bills for consumers over time. A Bill will be introduced to set up Great British Energy, a publicly owned clean power company headquartered in Scotland, which will help accelerate investment in renewable energy such as offshore wind [Great British Energy Bill].

“Legislation will be brought forward to help the country achieve energy independence and unlock investment in energy infrastructure. A Bill will be introduced to support sustainable aviation fuel production [Sustainable Aviation Fuel (Revenue Support Mechanism) Bill].”

According to Ed Miliband, Energy Security and Net Zero Secretary, the Labour government’s mission to make Britain a clean energy superpower is about investing in Britain, with National Wealth Fund expected to help create thousands of clean energy industry jobs to fortify the country’s energy independence and mitigate climate change.

Paul Thwaite, CEO of NatWest Group, outlined: “The UK has led the way globally in reducing its carbon emissions in recent decades, but the next stage of the transition will require significant public and private investment. This is a major challenge and collaboration across not just the financing but also policy space is critical to deliver it in a way that supports economic growth across the UK.

“The National Wealth Fund has the potential to accelerate the transition and address some of the fundamental barriers that have existed to date. As the UK’s leading bank for business, we will continue to support the government in the development of the National Wealth Fund, and ensure it delivers on its objectives to drive the green economy whilst also supporting communities, businesses and industry across the regions and nations of the UK.”

In her first speech as Chancellor, Rachel Reeves pledged to build growth forged through a new partnership with the private sector and asked the Secretaries of State for Transport and Energy Security and Net Zero to prioritize taking decisions on critical infrastructure projects that are with them now. To this end, the government is expected to review how it can unlock infrastructure without weakening environmental protections.

Miliband underlined the plans to make Britain a clean energy superpower with zero carbon electricity by 2030 and speed up its journey to net zero by saying: “Families and businesses across the country are still struggling with energy bills that are too high and are expected to rise again in the autumn.

“In an unstable world, the only way to guarantee our energy security and cut bills permanently is to speed up the transition away from fossil fuels and towards homegrown clean energy. The job of our department will be to deliver our mission so we can make the UK energy independent, bring down energy bills for good, create good jobs, and tackle the climate crisis.”

In response to the King’s Speech, the Association for Decentralised Energy (ADE) welcomed Labour’s drive to deliver a mass acceleration of renewable energy across the UK through GB Energy, pointing out that the time has come to push further in decarbonizing Britain’s heat and energy systems to provide a secure future.

Sarah Honan, Head of Policy at the ADE, noted: “The King’s speech has set the tone for the pace at which Labour intend to roll out policies in their first 100 days, and the decentralised energy sector is ready to take the brakes off with them. The mass acceleration of renewables is only possible if a smart and flexible optimised system is prioritised.

“Unlocking the potential of a demand-led system is the only way the UK can achieve true energy independence and security. Now is the time to use investment – through initiatives such as the National Wealth Fund – to deliver the green industrial revolution. This will ensure a prosperous future is secured for Britain, all whilst meeting legally binding net zero targets.”

Given its concerns about the impact of proposals for a further windfall tax and an end to new oil and gas licenses, Offshore Energies UK (OEUK), representing over 400 organizations involved in energy production from the seas around Britain’s coast and gas, oil, wind, hydrogen, and carbon capture sectors, urged Labour to set out a path that supports the UK offshore energy industry in the King’s Speech.

David Whitehouse, OEUK Chief Executive, underlined: “The new government says it has put partnership working at the heart of its agenda and we have welcomed that. But we remain deeply concerned that some of the new proposals being put forward for our industry will undermine the very same homegrown energy transition we all want to deliver.   

“Labour’s leadership has recognised that North Sea oil and gas will be with us for decades to come and they have committed to managing this strategic national asset in a way that does not jeopardise jobs. They now need to deliver on their commitment to support our industry and work in partnership with us. Through working together with the sector, we can create the conditions which unlock investment, support our supply chain companies, underpin jobs and grow the economy.”

OEUK published a new blueprint commissioned from AFRY Management Consulting, mapping out how the UK can meet the government target of net zero power by 2030 and warned that the goal needs to be delivered by building on the existing industrial strengths, creating jobs, and growing domestic companies – not simply by importing the technology and skills from other countries.

The report pinpointed the challenges ahead and offered solutions to overcome them in a bid to reach the new net zero power ambition. One of these is the deployment challenge, since more than 90 GW of new generation capacity will be needed by 2030, equivalent to powering over 90 million homes.

Offshore Energies UK is adamant that 80 GW of the new capacity has to come from renewables, thus, tripling offshore wind capacity and doubling current onshore wind and solar power capacity need to be on the agenda, repeating or exceeding the maximum historical annual new wind and solar installations each year between now and 2030.

In addition, 15 GW more energy should come from low-carbon capacity which can be called upon to provide reliable electricity with gas-fired power generation offset with carbon capture, and hydrogen power generation for periods with no wind or sun. This needs to be further complimented by the expansion of interconnector power transmission capacity from 10 GW to 21 GW by 2030 for energy trade linking Britain to continental European markets and Ireland.

Regarding the planning challenge, OEUK outlines that coordinated support to cut long project lead times, expansion of existing pipelines of work, and additional capacity for approvals are required. In light of this, 6 GW of grid connection agreements for offshore wind needs to be rapidly brought forward. As most of the required new power generation capacity is anticipated to need government support, such revenue support schemes should be finalized for new dispatchable low-carbon technologies if they are to receive awards by 2027.

Additionally, the number of government-awarded contracts in terms of gigawatts per year for offshore wind, onshore wind, and solar power needs to double, with rates of planning consent remaining at the highest possible throughput which may require further streamlining of current planning consent processes.

Whitehouse elaborated: “This independent report commissioned by OEUK shows that plans for a fully decarbonised power grid by 2030 are achievable but need high speed collaboration with business. It will require a herculean effort by government, regulators and industry working together to deliver change to UK infrastructure on a scale unseen since the industrial revolution. We will need everything everywhere all at once. Every year between now and 2030 we will have to install as many or more new offshore wind farms as we have ever achieved.

“Zero carbon power generation must come from reliable supplies that can be easily called upon when the wind doesn’t blow and the sun doesn’t shine.  In our 2030 net zero power grid there will remain an important role for gas fired power offset with carbon capture. The UK offshore industry is up for the challenge. Getting this right could mean big opportunities for our companies and people which will drive economic growth across the UK.”

Last but not least, OEUK mentions the time challenge, as there is limited room for delay, thus, failure to deliver in one area is forecast to generally lead to knock-on problems in another area especially where there are already technological problems with scaling up energy supply.

“There will be no prizes if we do not support our existing industries and anchor jobs here in the UK. We know the UK energy supply chain has between 60% to 80% of the capabilities required to develop low carbon energies. We are ready to work with the new government to unlock investment in the homegrown energy transition,” concluded Whitehouse.