The UK is set to outline its strategy to speed up the deployment of renewable power and capture carbon, part of a plan to boost energy investment in Britain that lacks the financial might of endeavors in the US.
(Bloomberg) — The UK is set to outline its strategy to speed up the deployment of renewable power and capture carbon, part of a plan to boost energy investment in Britain that lacks the financial might of endeavors in the US.
Billed as a response to the limitless green subsidies in US President Joe Biden’s Inflation Reduction Act, the measures in a draft document seen by Bloomberg News show little in the way of new spending. Any meaningful funding could come in the Autumn budget.
Key measures for the plan to be unveiled Thursday include the expansion of a home energy efficiency program, steps to speed up the planning process for renewable power developments and an announcement of the first projects to go forward in the country’s carbon capture and storage support mechanism.
The government is also opening another consultation on how it can work with communities to deliver onshore wind infrastructure to give them benefits like cheaper power. The move effectively delays a similar consultation launched last year, after the government came under pressure to lift a ban on onshore wind. “We want a rational solution that works for communities,” Energy Secretary Grant Shapps said.
The details may disappoint both the renewable power industry and the fossil-fuel one. While permitting reform is a key ask for green energy developers, there’s little by way of fresh funding and no sign that the government will budge on the terms or budget for an upcoming auction round to support new wind farms. Developers have warned that the price may be too low to make investments viable after soaring costs in recent years.
Windfall Tax
Similarly, there’s no indication yet on government plans to relax the terms of a windfall tax on North Sea oil and gas companies that has some of the biggest producers rethinking future investments in the UK.
Other measures set to be announced include appointments of interim executives of a body called Great British Nuclear that is meant to help deliver future investments in new nuclear power plants. However, it’s unclear how that will solve the most vexing problem for nuclear power in the UK, finding the billions of pounds to build new plants.
The UK also plans funding for hydrogen production projects and the £30 million Heat Pump Investment Accelerator, which is meant to multiply with private investment alongside it. It will also extend the Boiler Upgrade Scheme until 2028, a program provides grants to subsidize home heat pump installations.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.