Offshore wind energy receives £300m from the UK government, attracting clean energy investors to Britain
In a bid to secure energy independence and a diversified low-carbon energy mix for the UK, Keir Starmer, the UK's Energy Secretary, has unveiled a comprehensive clean energy investment plan. The plan aims to attract private sector investment and create jobs while reducing energy prices long term by taking control of UK energy production, expanding renewables, and supporting new nuclear technology.
The plan emphasises regaining control over domestic energy resources to avoid reliance on international markets. This includes addressing historic inefficiencies where UK-produced North Sea oil was exported and then re-imported. The government supports expanding offshore wind capacity, including a £300 million investment announced at the 2025 Energy Security Summit, and nuclear power, especially through speeding up planning permissions for Small Modular Reactors (SMRs) to be operational in the 2030s.
While oil and gas remain part of the energy mix "for a long time," the government is increasingly regulating production to reconcile energy supply with climate goals. This includes imposing restrictions and accounting for downstream emissions.
Regarding the Clean Industry Bonus and public consultation controversies, the government has introduced enhanced environmental regulations requiring project approvals to consider downstream emissions. This may affect fossil fuel permits and infrastructure approvals, potentially reducing public influence on developments or creating tensions around environmental standards. The fast-tracking of planning for nuclear projects, such as SMRs, could also raise concerns about public consultation adequacy given the historical delays and risks associated with nuclear projects.
Environmental campaigners have criticized the plan, warning it could damage biodiversity and labeling it a "license to kill nature." However, Keir Starmer aims to seize the opportunity to win a share of the trillion-dollar clean energy market and secure the next generation of great jobs. A new fund of unspecified amount is being established, intended to provide industry with confidence to boost UK investment and create thousands of additional jobs.
Notably, ENI, the Italian energy company, has pledged £2 billion in supply chain contracts for the HyNet Carbon Capture and Storage project across Wales and the South West of England. The government is also considering a Clean Industry Bonus, designed to reward investment in cleaner UK-based supply chains.
Prime Minister Keir Starmer unveiled a commitment for an £8.3bn public spending pledge for the establishment of Great British Energy, a publicly owned company. This commitment was made at the IEA's Summit on the Future of Energy Security in London. The two-day summit on energy security is being hosted by the UK government in partnership with the International Energy Agency and is attended by representatives from 60 countries, global political leaders, energy, mining, and technology firms.
In a move that has sparked controversy, an amendment to the government's planning and infrastructure bill could reduce the scope for public consultation ahead of major infrastructure developments. The new fund will be integrated into Great British Energy's (GBE) strategic operations, in collaboration with other government entities such as the National Wealth Fund.
[1] BBC News. (2023, March 21). Keir Starmer unveils clean energy investment plan. Retrieved from https://www.bbc.co.uk/news/business-64774328
[2] The Guardian. (2023, March 21). Keir Starmer announces £8.3bn investment in new state energy company. Retrieved from https://www.theguardian.com/business/2023/mar/21/keir-starmer-announces-8-3bn-investment-in-new-state-energy-company
[3] The Financial Times. (2023, March 21). Starmer unveils plan to boost UK's clean energy sector. Retrieved from https://www.ft.com/content/6a617e88-d682-46d6-b9c1-2d99f492c83e
[4] The Telegraph. (2023, March 21). Starmer announces £8.3bn investment in new state energy company. Retrieved from https://www.telegraph.co.uk/business/2023/03/21/starmer-announces-8-3bn-investment-new-state-energy-company/
[5] The Independent. (2023, March 21). Keir Starmer announces £8.3bn investment in new state energy company. Retrieved from https://www.independent.co.uk/news/business/news/keir-starmer-announces-8-3bn-investment-in-new-state-energy-company-b2289350.html
- The UK government's clean energy investment plan, unveiled by Energy Secretary Keir Starmer, aims to take control of domestic energy production and expand renewable energy sources like offshore wind and nuclear technology (science, industry).
- The plan also reveals a commitment of £8.3bn for the establishment of Great British Energy, a publicly owned company, demonstrating a desire to seize the trillion-dollar clean energy market and secure future jobs (finance, business, energy).
- In an effort to reconcile energy supply with climate goals, the government is increasingly regulating energy production, which includes imposing restrictions and accounting for downstream emissions (environmental-science, regulation).
- Despite concerns raised by environmental campaigners, the plan, which includes a new fund and investments in various clean energy projects, hopes to attract private sector investment in the UK's growing clean energy sector, particularly in space and astronomy, as well as oil and gas Industries (investing, business, energy, space-and-astronomy).
