I’m maligned as a ‘green energy sceptic’. I’m not. Dear Guardian reader, here’s what I think
It is always intriguing to see my own views through the lens of a newspaper refracted away from what I think. Although I am no admirer of Extinction Rebellion, I can assure Guardian readers that I am not a “green energy sceptic”. I am in favour of intelligent net zero in which green energy will play the biggest role.
I’m proud to belong to a country that has cut its greenhouse gas emissions by 40% since 1990, while growing the economy by over 70% in that time.
It is in this light that we can achieve our commitments to net zero by 2050, as dark satanic mills are replaced by onshore and offshore windfarms. But if the green agenda does not provide economic growth, it will ultimately not have political support and it will be selfdefeating.
Getting the British people on board with net zero requires us to demonstrate that we can go green in a way that makes them better off, not worse off, that drives growth instead of hindering it and that stimulates investment and innovation rather than driving traditional industries to the brink of ruin. The effect we have had on energyintensive industries increases carbon emissions as we import more from abroad while destroying high-paid jobs in the United Kingdom.
There are ways to make this work which the country is adopting. Consider the Contracts for Difference scheme. This programme has grown to support a bountiful range of renewable energy sources, from onshore wind to offshore, solar power to tidal and from remote island wind to energy production from waste – all while bringing down costs and growing the economy. The drive to produce up to 50GW of offshore wind by 2030 means that this sector alone should grow to support 90,000 jobs.
The scheme has successfully overcome demands for upfront capital and settled uncertainties for generators navigating volatile wholesale prices. It
has spurred £90bn of investment in renewables since 2012 and contributed to a five-fold increase in electricity generation from renewable sources over the decade. The latest auction round last year secured 93 new contracts for 11GW of renewable generation capacity – enough to power 12m homes.
In 2010, renewables accounted for a mere 7% of the UK’s electricity generation. Programmes such as Contracts for Difference mean that renewables now meet about 40% of our needs, reducing our reliance on authoritarian regimes such as Russia and strengthening our domestic energy sector. The war in Ukraine has thrown into sharp relief the need to rapidly increase our domestic energy supply and strengthen our energy security, from all forms of renewables to nuclear and our domestic oil and gas reserves, which are of course significantly greener than shipping liquefied natural gas from overseas.
That is why our recently announced growth plan will accelerate the delivery of major infrastructure projects including onshore and offshore windfarms. This plan will also boost the UK’s nascent hydrogen industry, which will work in harmony with the renewables and gas sectors alike.
The government will also align onshore wind planning policy with other infrastructure to allow it to be deployed more easily in England. We understand the strength of feeling that some people have about the impact of wind turbines in England. The plans will maintain local communities’ ability to contribute to proposals, including developing local partnerships for communities that wish to see new onshore wind infrastructure in return for benefits such as lower energy bills.
We are exploring options to support low-cost finance to help householders with the upfront costs of solar installation, permitted development rights to support deployment of more smallscale solar in commercial settings and designing performance standards to further encourage renewables, including solar PV, in new homes and buildings.
We also need to focus on another key part of our energy infrastructure, reinforcing the grid so that renewable electricity can be transported to homes and businesses all over the country.
Grid connection can often be on the critical path for getting new renewable infrastructure online, which is why I am committed to significantly reducing timelines for building new network infrastructure. But in exchange for the unprecedented support that is being offered to renewable energy companies, they must charge consumers and taxpayers a fair price for the energy they produce.
By separating the price of renewable energy from the most expensive form of production, which today is gas, and moving these companies on to Contracts for Difference, the government is providing the renewables sector with long-term stability and a sensible price that is fair to the industry and consumers alike.
The energy prices bill, introduced this week, will strengthen energy security and stop Putin holding our energy policy to ransom. It also has the potential to save billions of pounds for British billpayers, without deterring essential investment in low-carbon generation as we progress towards net zero.
Given the stakes, it’s important that the public debate on net zero and energy security is robust and lively, but I hope my commitment to making it a reality is clear.
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