In the past few months, Labour has fired out policy after policy with Ed Miliband leading the charge.
We’ve seen the birth of Great British Energy (GBE) – the state-owned energy giant set to turbocharge renewables – and the government has pledged to decarbonise the grid by 2030.
Offshore wind is on the march, as is CCS and of course the ban on new fossil fuel cars is back. We’ve got heating targets, more nuclear and a nationalised system operator for the grid and much more, phew!
Some say it is brilliant leadership, others are wary of a policy overload which will not be well managed.
Along with the trepidation ahead of the budget, questions are being asked if this is just rhetoric or setting out defined pathways for private investment.
I spoke to Lord Hunt, Minister for Energy Security and Net Zero about the rush to get out so many policies so fast. He was bullish in the view it was the right thing for Labour to do.
He said: “Overall, I think industry has really welcomed the coherent approach that we’ve agreed that we’ve run, we could have taken a year to make these announcements but the thing I’ve got to get over is look; Getting to clean power, accelerating to net zero is absolutely critical for this country and for the globe and for giving us energy security and giving us much more stability in prices.
“So these are not nice things to do. This is a coherent plan which is essential for our country and which at the same time we can help grow the economy and also, you know, provide many more highly skilled jobs.”
Bold or too ambitious?
At the core of this energy revolution is the government’s pledge to massively ramp up renewable energy. Offshore wind, solar power and nuclear energy are all in the spotlight with new partnerships between Great British Energy and the Crown Estate pushing things forward at lightning speed.
Lord Hunt who was in the last Labour administration, says this government is all-in. But while the policies sound amazing on paper, some in the industry are raising their eyebrows.
Is it all moving too fast? Are we throwing out more policy than the industry can actually handle?
“Listen, I do think that a lot of people at the top get it. Clearly, we have to help them get over the line. I believe that the policies that we’ve already enunciated are beginning to do this.
“I mean, people can see we mean business. You know, we’re going to carry on making further announcements in terms of the rest of the policy that we need to develop. The industrial strategy itself will show that we are very, very interested and focussed on growing the economy.
“I think the skills agenda that we’re developing similarly and I think it’s a combination of those things and a sense that we know what we’re doing, we understand the goals, we know it’s very challenging and I think we’ve got a lot of people really on our side in terms of the eventuality of where we want to get to.”
Certainty for investment?
One of the biggest question marks hovering over the UK’s net zero mission is: Where’s all the money coming from? The government has promised £8.3 billion for the energy transition during this Parliament but experts say that won’t be enough. Private investors will need to dig deep to help fill the gap.
A senior figure in the energy sector told us the policies are solid but added: “The concern is around investment. There isn’t yet enough confidence among investors to commit to these projects, particularly with ongoing economic uncertainty.”
In response the minister was positive private money will come.
“Why will you (investors) take it seriously? We are one of the five key missions the Prime Minister has set and clean power will have the energetic support from the centre of government and that in terms of convincing industry experts, finances, that I think would be a visible sign of the seriousness with which we are approaching this.”
UK leading net zero again
With COP talks in Azerbaijan around the corner, the UK has a chance to show the world just how serious it is about climate action says Lord Hunt.
“We clearly have a very, very strong agenda towards net zero clean power, growing the economy, getting more skills in this exciting sector. And because of this, I think it’s giving us a platform in which to influence global opinion on climate change.
“We’ve got the COP talks in Azerbaijan towards the end of the year where I hope we can bring our experience and leadership really to the fore.
So three months, massive change and a desire to make things happen. The government has promised more updates soon, including a detailed industrial strategy and skills plan to ensure the UK has the workforce it needs for this green revolution.
But as ever in politics it’s time that will reveal if ambition becomes reality.
