On 30 March, now known as Energy Security Day, the British government launched Powering up Britain – a comprehensive, long-term plan to increase its energy security, reduce domestic bills, and maintain its position as a world leader in carbon net zero efforts.
These policies, seen by many as a response to the Biden administration’s $369 billion Inflation Reduction Act1, will act as the cornerstone of a green industrial strategy focusing on “incentivising private investment” and a “pro-growth regulatory regime.”
In the recent past, the country has risked falling behind its counterparts in the race to support climate technologies and emerging markets. The success of these proposals may revolutionise the UK’s approach to energy and finance.
During the announcement, Energy Security Minister Grant Shapp emphasised the need to boost clean, renewable energy sources such as solar, wind and nuclear. “Access to cheap, abundant and reliable energy provides the foundation stone of a thriving economy,” he stated, “with our homes and businesses relying on it to deliver our future prosperity.”2
A Shift in Power
If all goes according to plan, by 2035, Britain will have “rebalanced gas and electricity costs,” making it home to some of the “cheapest wholesale electricity prices” in Europe.
A new ECO+3 programme billed as the ‘Great British Insulation Scheme’4 will allow up to 80% of those in council tax bands A to D financial assistance in optimising the energy efficiency of their homes. After all, plugging any operational inefficiencies, whether in homes, offices, or factories, is vital to lowering emissions and costs. This area is where integrated, real-time-based platforms like Ecolibrium’s SmartSense™ can play a significant role. It offers building managers valuable insight before energy losses become extreme.
In addition, the government has proposed transferring existing ‘green levies’ from electricity to petrol prices. This is an effort to avoid penalising individuals primarily using the former, a less carbon-polluting option.5 It has also extended its Boiler Upgrade Scheme to 2028, granting £5000 to citizens who invest in the equipment over the next 5 years.6
Among the new budgets listed in Powering Up Britain is a £30 million Heat Pump Investment Accelerator designed to attract private investment. The Local Electric Vehicle Infrastructure Fund aims to provide support and security to the electric transport industry by installing thousands of new charging stations across the UK. It also outlines plans for a £240 million Net Zero Hydrogen Fund, pumping money into an industry that has the potential to power all of London within the coming decade.
Funding the Future
The ambitious, immediate target is to lower energy demands nationwide by 15% in 7 years.7 Bluntly put, meeting such an objective will require considerable private investment.
The Green Finance Strategy,8 unveiled by the Chancellor of the Exchequer, Jeremy Hunt, aims to mobilise the billions of pounds necessary for carbon net zero and nature recovery by becoming the world's first Net Zero-aligned Financial Centre.
The new system includes consulting on the regulation of ESG rating providers. It also requires the largest organisations in the UK to disclose net zero transition plans that mirror those of financial firms. Fortunately, measuring, monitoring and comparing ESG metrics is an in-built feature in SmartSense™’s digital dashboard. It can help companies create smarter, healthier environments that consider the long view.
Only a holistic approach that balances people, the planet and profit will mitigate the effects of the triple whammy that is the climate, energy, and cost-of-living crises. In theory, Powering Up Britain is a step towards relief.
Bibliography
1 Tuerk, M., 2022. Reviewing the US Climate Agreement - A $369 Billion Supercharge that the Clean Tech Industry Needs. [online] Forbes. https://www.forbes.com/sites/miriamtuerk/2022/08/04/reviewing-the-us-climate-agreement--a-369-billion-supercharge-that-the-clean-tech-industry-needs/?sh=25783efc45ec
2 Shetty, S., 2023. UK’s Multi-Billion Pound Plan Aims to Strengthen Long-term Energy Security. [online] Mercom. https://www.mercomindia.com/uks-multi-billion-pound-energy-security
3 Editorial Staff, 2022. Government joins with households to help millions reduce their energy bills. [online] Gov.UK. https://www.gov.uk/government/news/government-joins-with-households-to-help-millions-reduce-their-energy-bills
4 Merrick, J., 2023. ‘Great British Insulation Scheme’ at heart of Govererment’s energy security strategy. [online] inews. https://inews.co.uk/news/politics/great-british-insulation-scheme-at-heart-of-governments-energy-security-strategy-2242575
5 Mavrokefalidis, D., 2023. Powering Up Britain: Green initiative set to hike gas bills by £100 per year. [online] Energy Live News. https://www.energylivenews.com/2023/03/30/powering-up-britain-green-initiative-set-to-hike-gas-bills-by-100-per-year/
6 Merrett, N., 2023. Government extends Boiler Upgrade Scheme until 2028 in energy security rethink. [online] H&V News. https://www.hvnplus.co.uk/news/government-extends-boiler-upgrade-scheme-until-2028-in-energy-plan-rethink-30-03-2023/
7 Young, S., 2022. Britain targets energy efficiency with consumption cut goal. [online] Reuters. https://www.reuters.com/business/energy/britains-hunt-sets-out-plans-reduce-energy-consumption-by-15-by-2030-2022-11-17/
8 Shapps, G., Hunt, J., Coffey, T., 2023. Mobilising Green Investment. [online] HM Government. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1149690/mobilising-green-investment-2023-green-finance-strategy.pdf
