UK Government unveils strategy to support multi-billion pound funding for green energy
The Department for Energy Security and Net Zero, under the government, has made known its proposal to increase the availability of cost-effective, clean energy derived from sources in the UK. This intends to enhance the country's energy security and lower families' bills in the long run.
The government plans to bring about a "dramatic alteration" in the energy system of Britain, which will be powered by more affordable and cleaner sources. This is expected to meet the Prime Minister's pledge to enhance the economy throughout the country and to create almost 500,000 new green jobs by 2030.
Today's announced measures are as follows:
The UK government has announced its commitment to Carbon Capture Usage and Storage (CCUS), with the first projects being rolled out in the nation's industrial heartlands. Furthermore, an invitation for two more clusters has been made available and the possibility for additional projects is open.
Additionally, a £160M fund has been established to support port infrastructure for the development of the UK's emerging floating offshore wind industry.
The Net Zero Hydrogen Fund, which is worth £240M, is being utilised to support the first tranche of new green hydrogen production projects.
The Contracts for Difference scheme, which incentivises investment in renewable technologies and has been backed by a budget of £205M, will now see bids accepted annually.
The launch of Great British Nuclear (GBN) marks the first step in a competition to select the most suitable Small Modular Reactor (SMR) technologies for development by autumn.
Reforms to the planning process will expedite the building of solar and offshore wind projects.
The Great British Insulation Scheme seeks to upgrade 300,000 of the least energy efficient homes in the country.
An investment of over £380M to install electric vehicle charging points and infrastructure has been made to support the rollout of electric vehicles.
A £30M Heat Pump Investment Accelerator is expected to leverage £270M in private investment for the manufacturing and supply of heat pumps in the UK, while the Boiler Upgrade Scheme will be extended to 2028.
UK Export Finance has been provided with an extra £10bn capacity to boost exports from the clean growth sectors.
Finally, this funding provides a stable environment for business to invest and grow in the transition to electric vehicles and sustainable aviation fuel.
The UK Infrastructure Bank (UKIB) has declared their intention to invest as much as £200M throughout two funds, with an aim to spur the progress and usage of electricity storage solutions. The first of the two is a £75M investment to the Gresham House Secure Income Renewable Energy & Storage LP (SIRES), with Centrica contributing an additional £65M. The second commitment is a £125M investment to the Equitix UK Electricity Storage Fund.
Through these investments, UKIB has made its first foray into the electricity storage industry, which could result in the creation of approximately 1300 jobs and also unlock around £200M in private sector capital that has been match-funded. This will form an important catalyst for the sector and provide assurance to private investors.
Ed Miliband, the Shadow Secretary of State for Climate Change and Net Zero, has requested that the government terminate its prohibition of onshore wind farms to increase the nation's energy security and green energy credentials.
The Prime Minister, Rishi Sunak, expressed that when Putin manipulates and exploits global energy sources, it has a detrimental effect on economic growth and increases the cost of household bills. He also spoke of the government's intention to inject resources into clean energy.
In order to protect people from the most severe effects of energy prices, we are helping to pay around half of the usual bill. Additionally, we are working hard to provide Britain with more budget-friendly and environmentally friendly energy sources so that energy costs can be decreased and the economy can be bolstered.
Our endeavor is to propel plans that will increase use of renewable energies, revive nuclear power, and construct new profitable industries such as carbon capture, which will create rewarding jobs across the nation, offer new chances for British companies domestically and internationally, and keep up our top-notch initiatives to get to net zero.
Grant Shapps, the Energy Security Secretary, noted that the world has witnessed in the last twelve months how Putin has exploited energy resources as a weapon when global supplies are disrupted.
Cheap, plentiful and dependable energy is a key factor for a thriving economy; it is indispensable for homes and businesses to guarantee future success.
This winter, we have provided an unprecedented level of cost of living support, which continues, and now our plan sets out how we can resolve this issue permanently and make UK electricity prices among the most affordable in Europe, while we share our knowledge on green development with other countries.
Jeremy Hunt, the chancellor of the exchequer, emphasized that the shift to a cleaner and more cost-effective energy system is not just about addressing climate change, but also providing a safeguard from potential price hikes. He asserted that it is necessary to speed up the transition to home-grown energy sources.
Through the implementation of our Green Finance Strategy, we are able to tap into billions of pounds of private capital, allowing us to generate more energy in Britain and develop industries and employment opportunities that will endure.