Government sets out new energy and net zero strategy

The ‘Powering Up Britain’ strategy aims to deliver the cheapest electricity in Europe by 2035 through investment in renewable, nuclear, and carbon capture technologies. It also sets out in detail Britain’s route to net zero, after the High Court ruled last summer that the original proposal was not comprehensive enough.   

Explaining the strategy, chancellor Jeremy Hunt said: “Transforming our energy system is no longer just about tackling climate change, it is also a matter of national security. To protect ourselves from future price spikes, we need to accelerate the move to cleaner, cheaper, home-grown energy.” 

Policy Measures 

Over 1,000 pages in length, the report outlines dozens of revised and new measures, including: 

• £30 million Heat Pump Investment Accelerator to leverage £270 million of private investment to boost manufacturing and supply of heat pumps in the UK. 
• Extension of Boiler Upgrade Scheme to 2028, offering a grant of up to £5,000 to anyone buying a heat pump. 

• Launch of Local Electric Vehicle Infrastructure fund and On-Street Residential Chargepoint Scheme to install tens of thousands of new chargers across the country.   
• Launch of Great British Insulation which will incentivise people in council tax bands A-D to insulate their properties. This is part of the £1 billion energy efficiency programme which will run until March 2026 aiming to reduce energy demand by 15 per cent by 2030.   
• Rebalance of gas and electricity costs to make electricity more affordable and effective for households and businesses. 
• Speed up planning approvals for energy infrastructure projects such as solar power and offshore wind. 
• Extra £10 billion capacity added to UK Export Finance to boost exports which clean growth sectors can access. 

• Commitment to Carbon Capture Usage and Storage to be rolled out in industrial heartlands. 
• Investment into UK’s emerging floating offshore wind by launching £160 million fund to support port infrastructure projects. 
• Update to the Green Finance Strategy to mobilise investment for net zero and nature recovery. This will include a consultation on requirements for largest firms to publish their net zero strategy; regulation for ESG rating providers and investment road maps for offshore wind, hydrogen, CCUS and heat pump sectors. 
• Support for the new green hydrogen production projects as part of the £240 million Net Zero Hydrogen Fund. 
• UK Infrastructure Bank to invest up to £200 million into funds on a matched basis for long- and short-term electricity storage solutions. 

What does this mean for you? 

Many of the measures in the document had already been announced. 

One of the key new parts of the strategy is the UK's first carbon capture site in Teesside. It is hoped this could reduce industrial emissions by up to 50 percent. The site will also create temporary and permanent jobs in the North East.  

You’re not likely to be getting an onshore windfarm in your backyard any time soon, as the government did not lift the de facto ban, despite pressure from campaigners. But with more support for offshore farms promised, renewables are likely to contribute more to the country’s energy mix in the future.  

Those without a driveway or off-street parking should find it easier to own an electric vehicle (EV), with £30 million being allocated for local authorities to improve residential EV charging.  

There is also an opportunity for renewable and clean energy technology suppliers and tradespeople to capitalise on new government subsidies and initiatives.  

Next steps 

The subsidies and incentives unveiled yesterday will help many small and medium-sized enterprises across the country meet their climate responsibilities and become more energy efficient. However, many firms will be eager to understand how they will be implemented and what the government plans to do to ensure UK businesses do not fall behind their European and American counterparts when it comes to much needed financial and technical support for the transition to net zero. 

To find out how you can access support to reduce your energy bills and carbon footprint, visit the Bee Net Zero website: Bee Net Zero | The journey to becoming Net Zero 

If you want to learn more about sustainability and how your business can benefit from going green, you can join Green Economy’s free webinar on solar power, which takes place at 12:00 on 18 April. Presided over by industry experts, the session aims to help you understand what is involved in buying, installing, and profiting from solar technologies. It will cover the procurement process, costs and potential savings, and advice on how to find local specialists to support your business. Book your place now: Demystifying solar – what you need to know | Apr 18 (zohobackstage.eu) 

Qualified electricians, plumbers, and roofers with ambitions to grow their client list, meanwhile, are invited to attend Enterprising You and Green Economy’s event, ‘Is your business ready for the Green Revolution – The future is now’. Hosted by the Green Skills Academy at 18:00 on 25 April, the event will highlight how you can access support to reskill and start installing heat pumps, solar panels, EV charge points, and numerous other green technologies. Register now: Events for the Self-Employed in Greater Manchester | EnterprisingYou (enterprising-you.co.uk)