Industry responds to the UK energy security plan
Released On 17th Apr 2023
Industry responds to the UK energy security plan
The UK’s energy sector is about to undergo a change thanks to a comprehensive package of policies and investments that the government unveiled today.
The package contains a wide range of activities that deal with everything from carbon capture technologies and building renovation to energy storage and transportation.
Significant investments have also been made in nuclear, hydrogen, and offshore wind energy.
But what does the business community think of the recently put forth energy security plan?
Enormous opportunity
Emma Pinchbeck, CEO of Energy UK, believes that the government’s plan offers a significant opportunity for the energy sector to achieve climate change goals and set up a safe, cheap, and sustainable energy system.
The strategy has advantages for the economy, society, and environment, including the creation of jobs, a boost for British businesses, manufacturing, and supply chains, and bettering people’s lives with warmer, comfortable houses that use less expensive energy.
Pinchbeck also emphasised the significance of creating the ideal environment to encourage investment and putting an emphasis on delivery, including the meticulous effort needed to reform laws and policies and put in place the appropriate systems and infrastructure to create low-cost, low-carbon domestic power.
The necessity of a hydrogen economy
The government’s acknowledgement of the value of investment and innovation in the UK’s energy networks as a means of achieving net zero in a timely manner was warmly welcomed by Lawrence Slade, Chief Executive of the Energy Networks Association.
The need for planning, legislation, and policy to keep up with the passing of time was stressed by him. He expects that the Electricity Commissioner’s assessment of connections and planning would make it easier for customers to connect to the grid and hasten the construction of crucial energy infrastructure.
Slade also stressed the significance of creating a hydrogen economy to decarbonise industry, enterprises, transportation, and households and advocated forward movement in choices about hydrogen blending and commercial models for hydrogen transport and storage.
Industry responds to the UK energy security plan
Not many people hear announcements
The executive director of policy for RenewableUK, Ana Musat, responded to the government’s Energy Security Day statement by saying: “These announcements do not go far enough to attract the investment we need in the renewable energy sector – we need much bolder action to secure Britain‘s clean energy future.
“Global competition for investment in renewable energy projects is fiercer than ever, and the UK risks falling behind and surrendering our global lead.
“The government has highlighted some important steps forward in existing policies and schemes, but we need much more than a “business as usual” approach to kickstart investment on the level we need to boost energy security, cut consumer bills and reach net zero.
“Without that, we won’t land the UK-wide economic benefits of building up new clean energy supply chains, as they will go elsewhere where the investment environment is more conducive and attractive.”
Need for more ambitious goals
Dr. Nina Skorupska CBE FEI, the Chief Executive of the Association for Renewable Energy and Clean Technology (REA), asserts that even though important renewable technologies have been delivered, bigger objectives are still required to maintain the UK’s position as a global leader in the field. Urgent action is needed in order to keep up with the global race for investment and to meet net zero goals.
Recent CCC and IPCC assessments have emphasised the need for speedier progress, according to Dr. Skorupska, and today’s announcements have left large gaps in crucial measures that would help the quick decarbonisation of power, heat, and transportation.
Lift the moratorium on new onshore wind projects
The government’s energy security strategy, in Sam Richards’ opinion and as the founder of the advocacy organization Britain Remade, is a step in the right direction but falls short of expectations.
According to Richards, Great British Nuclear has to provide urgent attention to developing Small Modular Reactors at both current and previous coal-powered plants.
In order to speed up the processing of planning requests for renewable energy projects and lift the restriction on new onshore wind projects in England, he also asks for the updating of National Policy Statements.
Investors may become dissuaded by delays
According to Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit, the recent gas crisis emphasises the necessity of moving away from oil and gas for true energy security, particularly in light of the North Sea reserves’ inevitable decline.
Ralston is also concerned that as long-term policy and regulatory clarity are essential for investment, the UK’s response to the US Inflation Reduction Act and the EU Net Zero Industry Act may deter offshore wind investors and harm businesses.
Ralston contends that in order to achieve net-zero goals and achieve reduced costs and greater energy security, the government must ensure that renewable energy sources are treated equally to fossil fuels.
