Plans to boost the 海角视频’s offshore wind capacity, build eight new nuclear reactors and breath new life into North Sea oil and gas projects have received mixed reaction from business leaders in North East.
The Energy Security Strategy includes an ambition to boost 海角视频 offshore wind capacity to 50GW in the next eight years – stretching the previous goal of 40GW – and according to the Government supporting 90,000 jobs in offshore wind by 2028.
Plans to accelerate nuclear energy capacity to 24GW by 2050 aim to cover about 25% of the country’s projected electricity demand, while a new licensing round for new North Sea oil and gas projects will also launch in autumn.
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The strategy comes just a few weeks after group was launched by business and political leaders that aims to make the North East a leader in the offshore renewables sector - with the aim of capitalising on the jobs it is expected to create.
Reacting to the strategy, Joanne Leng, chief executive of sector group NOF, which represents more than 400 supply chain companies in the North East energy industry, said: “A renewed focus on nuclear and greater emphasis on offshore wind, together with a fast-tracked increase in other renewable energy generation including hydrogen gives the 海角视频 supply chain confidence to invest in innovation, people and technology to deliver the energy transition at the same time as utilising 海角视频-developed energy resources.
“As well as creating security of supply through a balanced energy mix, which will importantly continue to include oil & gas, the strategy can also be a boost to 海角视频 industry though increased supply chain opportunities, job creation and economic growth.
“The 海角视频 supply chain is strong, innovative and has extensive experience across the energy sector, but these new fast-tracked investments and projects must ultimately lead to more 海角视频 content from our own home-grown supply chain. 海角视频 projects should mean 海角视频 contracts.”
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The strategy comes only weeks after the EU began to petition the World Trade Organisation saying the 海角视频’s subsidy support for green energy projects under the Contracts for Difference scheme violates WTO rules that imports must be able to compete on an equal footing with domestic products.
CBI chief economist Rain Newton-Smith said the Energy Strategy set an “ambitious bar” and the proof of its success would now be in the delivery.
She said: “While it’s welcome this strategy addresses some long-standing challenges, companies are continuing to really struggle with increased wholesale energy costs right now. The Government’s next step should be to provide immediate cashflow support for firms through the Recovery Loan Scheme – and move to cut bills for Energy Intensive Industries to maintain competitiveness.
“Kickstarting an ambitious national programme for household energy efficiency upgrades should follow this Strategy too – making people’s bills more affordable and cutting carbon across the country.”
But Mark Stephenson, of North East firm Stephenson-Mohl Developments – which has a pipeline of 500MW of renewable projects under development – said the strategy was “incomplete” and would fall short of helping businesses and households.
He said: “Unfortunately, the Government is running scared of a vocal minority, especially within its own party, when it comes to various moves towards planning reform whether with regards to housebuilding, onshore wind or other areas of major infrastructure development. Onshore wind is one of the cheapest forms of power yet has been largely omitted from this strategy purely for reasons of internal party management.
“A Government truly focused on the eye watering utility bills being faced by businesses and households alike, not to mention our country’s energy security, would have been braver and taken an enabling approach to onshore wind in England.
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“Nevertheless there are many positives to take away from today’s announcements as well, including the prioritisation of solar energy which is to be applauded. Nobody said these decisions are easy. The Government must now get the bit between its teeth and finish the job this strategy has started.”
The Strategy offers fewer measures to grow more controversial onshore wind projects with the Government saying it would consult with a “limited number of supportive communities” about new projects.
Current National Planning Policy Framework directives in England mean that new onshore wind turbines cannot receive planning permission unless an area is marked as suitable of wind energy in a local plan, and that local communities are satisfied that any impacts are addressed.
Joe Ridgeon, a director at Hexham-based Hedley Planning Services, argues the Government needed to be “braver and bolder” in its approach to onshore wind - calling for further planning policy adjustments to unlock small-scale wind turbine projects.
He said: “The 海角视频 Government has unveiled its plans but they’re disappointing. Surely the time has come for a radical rethink. Every farm and business - indeed, any individual with an appropriate site - would be able to erect a wind turbine, without the worry that planning is going to be the biggest risk to investment.
“The opportunity to develop partnerships with only a limited number of supportive communities who wish to host new onshore wind infrastructure does not go far enough, and the link to a guarantee for lower energy bills indicates that this is clearly in relation to large scale wind farms.”
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