The United Kingdom government has unveiled its intent to secure unprecedented levels of investment in renewable energy sources, as outlined in today's King's Speech. The move comes as part of broader efforts to enhance energy security and reduce dependence on unpredictable energy markets, said King Charles.
Additionally, London is determined to initiate reforms in grid connections to facilitate the UK's transition to achieving net-zero carbon dioxide emissions by 2050.
RenewableUK's Chief Executive, Dan McGrail, welcomed the government's commitment but emphasized the need for specific policies. McGrail stated, “The UK's energy security and net-zero goals can only be met if we have offshore wind as the backbone of our energy system.”
To strengthen the UK's position in the global offshore wind market, McGrail called for close collaboration with the Chancellor to define an overall budget and maximum strike prices, conducive to the return on investment for crucial new projects. He also highlighted the importance of adjusting capital allowances for offshore wind projects and removing the Electricity Generator Levy for projects opting to sell their power directly on the open market before securing Contract for Difference (CfD) agreements.
However, the decision to grant additional oil and gas leases has faced criticism from clean energy groups. Greenpeace UK's Head of Politics, Rebecca Newsom, expressed concern over the government's approach, particularly in light of other nations' investments in green infrastructure and renewables. She asserted that such investments promote economic growth, job creation, and environmental sustainability.
Sam Richards from Britain Remade emphasized the need to prioritize clean energy sources and accelerate the development of renewable energy infrastructure.
Energy UK's Chief Executive, Emma Pinchbeck, highlighted the importance of diversifying energy sources to reduce dependence on gas and minimize exposure to volatile international energy markets. While acknowledging the ongoing role of oil and gas licenses during the energy transition, Pinchbeck underscored that these licenses may not significantly lower customer bills or enhance energy security.
