The UK government has put renewables and new nuclear at the heart of a plan to transform its power system for net zero by 2050.
London has reiterated its backing of the 40GW by 2030 offshore wind goal and 1GW floating target as part of a blueprint to generate “overwhelmingly decarbonised power” in the next decade, a key step to the mid-century ambition.
The government, which will lay out the vision in an Energy White Paper to be published today, vowed to attract more offshore wind manufacturing for the sector that will be the backbone of an energy system of the future based mainly on electricity. Demand for power will double thanks to a suite of other decarbonisation measures in transport and heat.
Whitehall has also confirmed it will enter negotiations with EDF in relation to the Sizewell C nuclear project in Suffolk and may take a direct financial stake in its construction. It is considering options to enable investment in “at least one” nuclear station by the end of this parliament.
Negotiations will be subject to reaching a “value for money deal” and all other relevant approvals, before any final decision is taken on whether to proceed.
Officials will explore a range of financing options for new nuclear, including the “potential role of government finance during construction, provided there is clear value for money for consumers and taxpayers”.
The clean power system will be further supported by the kick-starting a hydrogen economy by working with industry to aim for 5GW of production by 2030, backed up by a new £240m Net Zero Hydrogen Fund for low carbon hydrogen production.
To deliver this, the Conservative administration has pledged support for the people and communities most affected by the move away from oil and gas production to ensure this expertise can be used, including in carbon capture and storage where £1bn will be invested in four industrial clusters by 2030.
A UK Emissions Trading Scheme will also be set up from 1 January 2021 to replace the current EU ETS at the end of the transition period.
Meanwhile, the government has promised to keep bills affordable for consumers by making the retail market competitive, including a simpler switching system, spend £1.3bn to accelerate the rollout of electric vehicle charge points and move away from domestic fossil fuel boilers.
All of this will “unleash a green economic recovery” by supporting up to 220,000 jobs over the next decade across England, Scotland, Wales and Northern Ireland, according to the government.
“Today’s plan establishes a decisive and permanent shift away from our dependence on fossil fuels, towards cleaner energy sources that will put our country at the forefront of the global green industrial revolution,” said BEIS Secretary Alok Sharma.
“Through a major programme of investment and reform, we are determined to both decarbonise our economy in the most cost-effective way, while creating new sunrise industries and revitalising our industrial heartlands that will support new green jobs for generations to come.”