Nuclear, offshore wind ambitions boosted in new UK energy security strategy

The British government launched a plan April 6 to "supercharge" renewables deployment and add new nuclear capacity in a bid to bolster its energy independence in light of rising geopolitical risk.

The Department for Business, Energy and Industrial Strategy's energy security plan increases Britain's offshore wind target from 40 GW to 50 GW by 2030 and commits to increasing nuclear capacity to 24 GW by 2050.

This will mean nuclear will account for about 25% of the country's projected power demand in 2050, the government said.

The government will set up a new body, Great British Nuclear, and task it with accelerating new nuclear projects. The agency will be supported by a £120 million Future Nuclear Enabling Fund, with the aim of developing up to eight new reactors, "equivalent to one reactor a year instead of one a decade," the government said. One site earmarked for construction is Wylfa in Anglesey, Wales.

The quick timeline is ambitious, given that Electricité de France SA began construction work on its Hinkley Point C nuclear plant in western England in 2018 and the facility is not set for completion until 2027.

Leveraging nuclear and offshore wind, in particular, will mean Great Britain will be powered by 95% low-carbon electricity in 2030, the government said. The U.K. previously outlined a goal of running its power grid on entirely low-carbon sources by 2035.

Mixed fortunes for onshore, offshore wind

Of the offshore wind target, 5 GW will come from floating wind, and reformed planning procedures will accelerate the time it takes for projects to begin construction from four years down to one.

The government did not install new targets for onshore wind deployment, however, to the dismay of the sector. The strategy only says that government will liaise with a "limited number" of supportive communities that wish to host new projects in return for lower bills.

"Deploying more onshore wind is the quickest and cheapest way to produce more homegrown electricity and the government appears to have missed a huge opportunity to unleash its power," Monika Paplaczyk, investment director at developer Thrive Renewables PLC, said in a statement posted on Twitter.

"We need to make use of every tool in the box to boost our energy independence," Dan McGrail, CEO of lobby group RenewableUK, said in a statement. Overall, the group welcomed the government's plan, including the proposals on permitting procedures, which have been a recurring agenda item for renewables players across Europe for years.

Solar capacity across the U.K. could increase fivefold from the current 14 GW by 2035, according to the strategy, delivered particularly by rooftop solar.

"This is a welcome plan from the government to recognize the reality of real-time shifting geopolitics," Michael Burns, energy partner at law firm Ashurst, said about the strategy. "What will be key is to have the right technologies, at the right price and, importantly, sufficient supply of the right skill sets in the labor market, to execute on it."

More North Sea oil and gas

The government also said it would aim to double its current low-carbon hydrogen plan from 10 GW by the end of this decade, with at least half coming from green hydrogen, made with renewables via electrolysis.

"This will not only provide cleaner energy for vital British industries to move away from expensive fossil fuels, but could also be used for cleaner power, transport and potentially heat," the government said.

More fossil fuels may be made in Britain, however. A new licensing round for oil and gas projects in the North Sea will be launched in the autumn, according to the strategy.

British households are seeing their energy bills rise significantly as a result of the global gas shortage and market volatility of recent months. A price cap, which was meant to limit expenses, was lifted at the beginning of April to allow utilities to pass on more costs to consumers. The move sent energy prices up by more than half and pushed 5 million English households into fuel stress, according to the Resolution Foundation.

"Consumer bills will be lower this decade than they otherwise would be as a result of the measures this government has taken," the new strategy said.

British houses are also among the most difficult in Europe to keep warm because of poor insulation and low efficiency. This point remained unaddressed in the energy security strategy.

"We are surprised to learn that the government is not doing more to drive energy efficiency," Jonathan Maxwell, CEO and founder of Sustainable Development Capital LLP, said in a statement. "Improving energy efficiency in commercial, industrial and public sector buildings, as well as households, has a huge role to play in cutting carbon, lowering costs, and increasing our energy security."

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