Cleaner and more affordable energy to be made in Great Britain under bold plans to boost long-term energy independence, security and prosperity. However, builders have warned that the strategy will fail consumers.
The government’s British Energy Security Strategy sets out how Great Britain will accelerate the deployment of wind, new nuclear, solar and hydrogen, whilst supporting the production of domestic oil and gas in the nearer term – which could see 95% of electricity by 2030 being low carbon.
However, the FMB has said that it fails to deliver for builders, with no significant measures announced to improve the UK’s 29 million energy inefficient homes which would help cut bills and lower emissions.
Brian Berry, Chief Executive at the FMB said: “The Energy Security Strategy completely misses the mark in tackling energy consumption in our homes. After the disappointment of the Heat and Buildings Strategy this was an opportunity for Government to implement a National Retrofit Strategy, focussing on improving the energy efficiency of the UK’s draughty and leaky homes.
“While the strategy does deliver 0% VAT on energy efficiency improvements to properties, a welcome move that the FMB has long been campaigning for, this only helps those with the money to pay in the first place. A broader, insulation led, retrofit strategy would have been an immediate solution to reduce energy consumption, boost the economy and importantly, help save homeowners money on their bills during a cost-of-living crisis.”
RIBA President Simon Allford added: “The publication of this energy strategy signals progress and should help to boost the UK’s energy independence. But today’s measures will not help to help to tackle energy consumption or crippling price rises. The Government must realise that we will not ease the burden on vulnerable households unless we improve the energy efficiency of our buildings. We urgently require a National Retrofit Strategy.”
One housebuilder pointed out that the strategy won’t help consumers struggling to pay their bills. Mark Booth, co-founder of Hayfield, added: “We all accept that, following the invasion of Ukraine, the focus needs to be on building the UK’s energy security. It’s inevitable that it was going to concentrate on the supply side.
“What’s disappointing is that, coming only a few weeks after an underwhelming Spring Statement, there is so little on the consumer side, particularly heating. We’re fitting heat pumps in all our new homes but not all housebuilders are. And millions of Britain’s houses are old and poorly insulated, which is increasing energy demand.
“In the current cost-of-living crisis there needs to be a greater commitment to increasing the rollout of heat pumps beyond a competition and a temporary VAT cut. And housebuilders should be installing heat pumps instead of gas boilers as standard now, given we know old-fashioned heating systems will need to be scrapped later this decade.”
The strategy will see a significant acceleration of nuclear, with an ambition of up to 24GW by 2050 to come from this safe, clean, and reliable source of power. This would represent up to around 25% of our projected electricity demand. Subject to technology readiness from industry, Small Modular Reactors will form a key part of the nuclear project pipeline.
A new government body, Great British Nuclear, will be set up immediately to bring forward new projects, backed by substantial funding, and we will launch the £120 million Future Nuclear Enabling Fund this month. We will work to progress a series of projects as soon as possible this decade, including Wylfa site in Anglesey. This could mean delivering up to eight reactors, equivalent to one reactor a year instead of one a decade, accelerating nuclear in Britain.
The Prime Minister, Boris Johnson, said: “We’re setting out bold plans to scale up and accelerate affordable, clean and secure energy made in Britain, for Britain – from new nuclear to offshore wind – in the decade ahead.
“This will reduce our dependence on power sources exposed to volatile international prices we cannot control, so we can enjoy greater energy self-sufficiency with cheaper bills.
This plan comes in light of rising global energy prices, provoked by surging demand after the pandemic as well as Russia’s invasion of Ukraine. This will be central to weaning Britain off expensive fossil fuels, which are subject to volatile gas prices set by international markets we are unable to control, and boosting our diverse sources of homegrown energy for greater energy security in the long-term.
“Consumer bills will be lower this decade than they otherwise would be as a result of the measures this government has taken.
“The British Energy Security Strategy will also increase the number of clean jobs in the UK by supporting; 90,000 jobs in offshore wind by 2028 – 30,000 more than previously expected; 10,000 jobs in solar power by 2028 – almost double our previous expectations; and 12,000 jobs in the UK hydrogen industry by 2030 – 3,000 more than previously expected.
“In total, the British Energy Security Strategy builds on the Prime Minister’s Ten Point Plan for a Green Industrial Revolution, and, together with the Net Zero Strategy, is driving an unprecedented £100 billion of private sector investment into new British industries including Offshore Wind and supporting 480,000 new clean jobs by the end of the decade.”
