The clean energy future will be “built in Britain”, the government has declared, after unveiling a new Clean Energy Industries Sector Plan.
Developing alongside industry, trade unions and workers throughout the UK, the plan sets a target of “at least” doubling investment levels across frontier clean energy industries to more than £30 billion a year by 2035. Those industries are wind, nuclear, fusion energy, carbon capture usage and storage, hydrogen and heat pumps – industries that government considers there to be the greatest growth potential.
The overarching vision is for the UK to become the most attractive place in Europe to invest in clean energy industries, with exports ramped up across all of the above industries and hundreds of thousands of good quality jobs across the country created.
To make it happen, as well as calling on existing strengths such as the UK’s status as a coastal power and leading nuclear nation, the government is pledging to provide a clear mission to drive investment certainty; deliver targeted catalytic public investment to drive jobs, innovation and growth – including the new £1 billion Clean Energy Supply Chain Fund through Great British Energy; break down barriers to investment; and ensure that the UK has the skilled workforce it needs, with a Clean Energy Workforce Strategy to be set out “shortly”.
Government cuts energy costs for industry…
This came as the government revealed its wider modern Industrial Strategy which sets out a 10-year plan to boost investment, create good skilled jobs and transform Britain into the best place to do business by addressing two of the biggest barriers that UK industry finds itself facing – high electricity prices and lengthy waits for grid connections.
A new British Industrial Competitiveness Scheme, introduced from 2027, will see electricity costs reduced by up to £40/MWh for more than 7,000 electricity-intensive businesses, exempting them from levies such as the Renewables Obligation, Feed-in Tariffs and Capacity Market. The British Industry Supercharger will also see the most energy-intensive firms, such as steel, chemicals and glass, get a 90% discount on electricity network chargers, up from 60%.
Finally, to address grid connections, a new Connections Accelerator Service will streamline grid access for major investment projects. Those that stand to create high-quality jobs and deliver significant economic benefits will be prioritised, with this scheme targeted to enter operation from the end of 2025.
…and should do same for consumers
It is not just industry that government should be making electricity cheaper for, however, according to the Climate Change Committee (CCC). In its first assessment of the new government’s progress in reducing emissions, it spoke of encouraging signs, but with action still needing to accelerate it stressed that cheaper electricity will help people feel the benefits of the transition which, in turn, will help to speed up the uptake of crucial clean energy technologies such as heat pumps and electric vehicles.
Electric vehicles’ share of the new car market grew to 19.6% in 2024, with heat pump installations up 56% and woodland creation up 59%. This was noted as being mostly down to previous government policy, but the CCC did welcome ‘bold policy decisions’ that have been made by the new government such as greater clarity on the clean power mission and reinstatement of the 2030 phase-out of new petrol and diesel vehicles.
Key steps going forward to help accelerate progress even further include providing confidence and certainty to scale heat pump deployment in existing buildings; implementing regulations to ensure new homes are not connected to the gas grid; effectively delivering a rapid expansion of the low carbon electricity system; putting policies and incentives in place to ramp up tree planting and peatland restoration; and publishing a strategy to support skills.
Also in the news:
UK to be sustainable finance capital of the world: The government has outlined plans to support banks and large companies in developing climate transition plans as it looks to make the UK the “sustainable finance capital of the world”.
Government backs key industries to ramp up national security: Energy is among the industries earmarked to get a greater share of the £400 billion spent on government procurement each year in a bid to ensure the UK retains a strong, homegrown industrial base, enhancing national security.
UK shuns Morocco energy link in favour of homegrown power: The government has rejected plans for a £25 billion renewable energy link with Morrocco that would have seen enough solar and wind imported to cover a tenth of the UK’s electricity demand, with it said to instead be wanting to focus on ‘homegrown’ energy supplies.
New map shows UK’s wind energy supply chain: RenewableUK has released a map, powered by its EnergyPulse market dataset, that highlights the locations of the 1,996 supply chain companies in the wind energy industry, as well as key areas of industrial growth.
Solar to power tubes in London: Transport for London (TfL) has awarded a Power Purchase Agreement (PPA) to EDF Renewables UK to provide it with 80GWh of solar from its Longfield Solar Energy Farm, helping to power the tube network, with it looking to secure up to 70% of its electricity use from renewable sources through future PPAs.
Opergy makes case to electrify boating industry: Opergy has released a new think piece that sets out how a transition to clean maritime offers a generational opportunity for renewal, growth and innovation across the Norfolk Broads and beyond.
Octopus Energy and BYD joins forces for car and charging bundle: Britain’s first vehicle-to-grid bundle has been launched with Octopus Energy and BYD joining forces for the ‘Power Pack Bundle’ that, for less than £300 a month, offers a leased V2G-ready BYD Dolphin, bi-directional Zaptec Pro Charger, and access to a smart tariff offering completely free home charging.
Green Plant Academy to address construction skills shortages: A new Green Plant Academy has been launched in London, designed to specialise in training on zero-emission equipment, providing career development while further helping the construction industry to transition to cleaner ways of working and address the climate emergency.
