Unsurprisingly given the energy shock stemming from Russia’s invasion of Ukraine, the UK Government has published a plan, entitled Powering Up Britain, to “ensure the UK is more energy independent, secure and resilient.” 

While the recommendations of the Independent Review of Net Zero have been accepted, the plan outlines shorter term measures to secure adequate gas and electricity supplies for 2022 and 2023 including “maximising the production of UK oil and gas” to minimise reliance on overseas imports. The finite reserves in the North Sea basin mean that gas production is expected to fall to “30% of current levels by 2035” even with continued exploration and production. This means that alternative sources of gas will be needed if the UK economy continues to rely on gas in its energy system.  

Reduce demand

New targets have been set to reduce energy demand, including improving the energy efficiency of buildings, products and industrial processes. The Government expects to spend £12.6bn ($15.6bn) on these efforts between now and 2028. Consultations on consumer protection and a price cap on default tariffs are expected in 2023.

The strategy paper makes very clear that the Government is betting heavily on innovation and new technologies to improve future energy security. This includes a commitment to nuclear, including new projects and support for the development of advanced modular reactors. Investment is not limited to existing renewable sources of energy such as wind and solar, but also bioenergy, carbon capture, as well as electrolytic hydrogen production and fusion energy technology.

Examining the delivery timelines makes clear just how much of this work is, at the present moment either in the planning stages or entirely aspirational in nature. The plan is complemented by a net zero growth plan, which focuses on reducing emissions and supporting the economic transition to net zero in the longer term.