King Charles unveiled the new Labor government’s plans to invest in renewable energy and other measures to tackle climate change at the State Opening of Parliament.
He set out Sir Keir Starmer’s plans to commit to clean energy – with a focus on floating offshore wind farms around Britain’s coast – and promised lower energy bills for consumers in the long term.
“My government recognizes the urgency of the global climate challenge and the new job opportunities that can come from leading the development of the technologies of the future,” King said.
What are the government’s plans?
The King’s Speech – which sets out Labour’s legislative agenda for the coming parliament – outlined how the government is “committed to a clean energy transition that will reduce energy bills for consumers over time”.
A key part will be investment in offshore wind farms, a technology in which the UK is already a global leader. It is second only to China globally in terms of planned offshore wind projects, and ahead of the US.
The new Labor government has pledged to double onshore wind and quadruple offshore wind by 2030 – with offshore wind reaching 60 gigawatts (GW) by 2030.
The move will turn Britain into a “clean energy superpower” and end Britain’s dependence on fossil fuels and imported energy, Labor believes.
King Charles said a bill would be introduced to set up Great British Energy, a publicly owned clean energy giant that would accelerate investment in technologies such as offshore wind.
Clean energy companies will be incentivized by a UK jobs bonus of up to £500m a year from 2026, with the aim of creating 650,000 new jobs by 2030.
The King’s Speech also promised legislation to achieve energy independence, a bill to support sustainable jet fuel and a bill to strengthen the powers of the water regulator and clean up Britain’s rivers.
How would utility bills be reduced?
Labor hopes Great British Energy will deliver “clean, safe, home-grown energy and lower bills for families”. The £8.3bn company will cut its energy bills by 2030 under Labor plans by switching to domestic renewable energy.
During the campaign, Labor politicians suggested it could be as much as £300 per household, based on October 2023 calculations by think tank Ember.
With ‘decarbonisation’ and the transition to renewables, the UK will no longer be dependent on imported oil and gas, meaning UK households will not be exposed to the rapid price rises that have been the case over the past few years. the result of the Ukrainian war.
Decarbonising the UK’s electricity system would mean that electricity prices would no longer be linked to global gas prices, theoretically allowing for lower bills.
Energy research firm Aurora believes that achieving a net-zero energy grid by 2030 – as opposed to the conservative 2035 plan – would lead to cheaper energy.
It will work?
The target to quadruple offshore wind by 2030 is extremely ambitious and many have expressed skepticism that the previous target of 50GW could be achieved – regardless of Labour’s new 60GW target.
The Institute for Public Policy Research (IPPR) think-tank suggested the government could take up to 18 years to meet the 50 GW target.
A lack of installation vessels and foundations for the turbines means the target is “impossible”, said Norman Skillen, UK and Ireland general manager of Benelux marine supplier Jan De Nul, speaking on energy title Recharge.
But campaigners for cheaper energy welcomed the move, saying a switch to renewables was “the only way” to avoid price shocks in the future.
Fiona Waters, spokesperson for Warm This Winter, said: “The only way to keep bills down in the long term is to rapidly introduce renewable energy and insulation to reduce our dependence on volatile oil and gas, protect consumers from price shocks and offer. local community work and The King’s Speech is a good start.’