RenewableUK reacts to the Government’s latest energy plan…

As you’ll know, the new Energy Price Guarantee has capped bills from 1st October onwards at £2,500 per household. In addition to the £400 energy bill discount for available for all, official figures suggest the scheme will save households an average of £1,000 a year on their energy bills for the next two years. Action was also announced to reduce the cost of energy over time, including a new Energy Supply Taskforce to negotiate prices with suppliers and a joint scheme between HM Treasury and the Bank of England to explore liquidity requirements faced by energy firms operating in the UK.

In an attempt to further accelerate domestic energy supply, Prime Minister Liz Truss also announced the launch of a new oil and gas licencing round expected to include more than 100 new licences, as well as lift the moratorium on UK shale gas production, and continuing progressing nuclear power production. Energy production in the North Sea was included as well, with a spotlight on accelerating the transition of oil and gas to clean energy sources in the area.

The PM also indicated that she would lift the three-year fracking ban in England and announced a review of the UK’s 2050 net zero emissions target to ensure that ambitions were not putting ‘undue burdens’ on businesses or consumers.

Though some of these declarations have been met with huge positivity and relief, some have ignited debate from various groups among the UK population. For example, there are questions over who will benefit most from the new energy cost cap – those who are financially better off may receive the greatest advantage.

The focus on a short-term solution that will drive down costs in the immediate future is understandable, given the continued increases in cost-of-living, but this could have a significant bearing on the development of the energy sector – as well as energy costs and availability in the years to come. Rather than prioritising traditional industries for investment, money may be better spent by funding the transition of traditional industries such as oil and gas to greener energy options. In the long-run, this would better provide the industry with the funding it needs to deliver cost-competitive energy to the consumer.

The return to fracking could also have a profound impact on the natural environment, local communities and the country’s green energy future. The practice was halted in 2019 following an earth tremor caused by fracking for shale near Blackpool. Not only does this cause concern for residents and businesses within close proximity to fracking sites, but there is also uncertainty about whether a shale gas industry could be viable. Experts are questioning whether there would be enough shale to make a significant impact on energy supply or price and how quickly this would be seen in real terms if production were to begin.

It is crucial that we maintain momentum across the green energy sector to stay on course and meet net zero ambitions. Many in our industry have already suggested that we could surpass the targets set by government with sufficient support to facilitate accelerated growth.

Indeed, the new Prime Minister aims for the UK for be a net energy exporter by 2040 – this would have a much greater impact if we could export more green energy.

RenewableUK enthusiastically welcomes the new Government Taskforce and any new initiatives designed to look closer at the opportunities for growth within the renewable energy sector. Our industry and Government are working together to help suppliers and developers lay strong foundations which will put the UK in a much stronger trading position for the future.

Though only time will tell how much of a difference the new energy price cap and other measures will have on rising prices, inflation and the cost-of-living crisis, renewable energy will remain an important part of the UK’s future.

For more information about RenewableUK, please visit www.renewableuk.com