Clean energy future to be ‘built in Britain’

Communities across Britain will benefit from good jobs and investment in the clean energy economy, as the government today (Monday 23 June) publishes its Clean Energy Industries Sector Plan to ‘build it in Britain’.

Clean energy is the economic opportunity of the twenty-first century, and thanks to the government’s clean energy mission, investment is booming in the UK, with over £40 billion of private investment in clean energy announced since July.

This landmark plan, developed with industry, trade unions, and workers across all regions of the country, sets the UK on a path to unleash the tidal wave of jobs and investment that clean energy can bring, with the government targeting at least a doubling of current investment levels across our frontier Clean Energy Industries to over £30 billion per year by 2035.

It comes after the Spending Review confirmed the biggest programme of investment in homegrown energy in UK history – from launching a golden age of nuclear with funding to build Sizewell C nuclear power station on the Suffolk coast and small modular reactors, to £9.4 billion for carbon capture industries.

Energy Secretary Ed Miliband said

This government is doubling down on Britain’s clean power strengths as we build this new era of clean energy abundance, helping deliver good jobs, energy security and lower household bills.

The UK’s pitch is clear – build it in Britain. Power the world.

Great British Energy Chief Executive Dan McGrail said

Great British Energy will help the UK win the global race for clean energy jobs and growth by investing in homegrown supply chains and ensuring key infrastructure parts are made here in Britain.

We are working closely with businesses across the clean energy sector to invest in areas of strategic need and will get funding out as fast as possible to get new projects off the ground.

As part of this plan, Great British Energy will have an additional £700 million to help build manufacturing facilities here at home for key components for the clean power revolution like floating offshore platforms, electric cables, and cutting-edge hydrogen infrastructure. This builds on Great British Energy’s initial £300 million for offshore wind supply chains, which the Energy Secretary confirmed last week has already catalysed a further £700 million from industry and The Crown Estate. With today’s additional funding, this brings total public and private funding in clean energy supply chains to £1.7 billion. This investment will unlock thousands of jobs, kickstarting growth in coastal communities and industrial towns, and secure a cleaner, more independent energy future for Britain.

Lucy Yu, CEO and founder of the Centre for Net Zero, has also been announced as the government’s Clean Energy AI Champion – helping to drive the adoption of AI across the UK’s clean energy sector and accelerate the net zero transition.

The Clean Industry Bonus – the financial reward scheme for offshore wind developers to invest in homegrown, cleaner supply chains – could also be expanded to more sectors, such as hydrogen and onshore wind. This will ensure clean energy investment is directed to regions that need it most, including traditional oil and gas communities, ex-industrial areas and coastal communities.

The Industrial Strategy sets out how Britain’s strengths make it the natural home for clean power industries as a coastal nation, a scientific and innovation superpower, with strengths in high-value manufacturing and a skilled energy workforce to match.

Stakeholders

Martin Pibworth, Chief Executive designate at SSE plc, said

The government’s industrial strategy is a welcome signal of long-term thinking and ambition – doubling down on homegrown energy is the right thing for security, resilience and affordability, making the most of the UK’s competitive geographical and technical advantages in renewables in particular.

It’s exactly the kind of commitment that gives industry the confidence to deliver at pace and scale, and with important decisions on energy policy expected in the weeks ahead, we hope to see a continued focus on unlocking investment that drives growth.

As the UK’s clean energy champion, SSE is investing £17.5 billion over 5 years to 2027 – building the infrastructure, creating high-quality jobs, supporting the supply chain and driving the innovation needed to deliver a net zero economy.

Jon Butterworth, CEO of National Gas, said

The Industrial Strategy makes clear the scale of economic opportunity within the clean energy sector. As an essential enabler for all growth sectors, we warmly welcome the Clean Energy Industries Sector Plan which will position Britain as a world leader in technologies like hydrogen and carbon capture.

As Britain’s national gas network, we believe technologies like hydrogen and carbon capture will attract major investment, creating highly-skilled jobs across the country, as well as decarbonising our existing industries and bolstering energy security.

We welcome the recent commitments and recognition shown by the government on the role of green gases and Britain’s national gas network and look forward to working in partnership to deliver the clean energy economy of the future.

Steve Foxley, Chief Executive of the Offshore Renewable Energy Catapult, said

Wind energy is not only a critical enabler of Net Zero as the foundation of our future clean energy system but also a once-in-a-generation industrial growth opportunity. Through clear pathways from research and development to commercialisation and deployment, the UK’s Modern Industrial Strategy will capitalise on our long history of innovation to not only attract critical manufacturing investment, creating thousands of highly skilled jobs the length and breadth of the country, but also ensure our energy security in an otherwise increasingly uncertain world.

Chris Norbury, Chief Executive of E.ON UK

We welcome the government’s bold ambition to put clean energy at the centre of the UK’s industrial strategy. This is a once-in-a-generation opportunity to grow the economy, strengthen energy security and create skilled, secure jobs across the country.

Our £2 billion UK investment plan is already driving forward decarbonisation, digitalisation and green skills, including through our Net Zero Academy and over 1,300 apprenticeships since 2018.

This strategy is a chance to accelerate that progress with the right clarity, long-term investment signals and genuine partnership between government, cities and industry. If we get this right, Britain can lead the world in clean energy and deliver real meaningful benefits to every household and business.

Paul Nowak, General Secretary of the Trades Union Congress (TUC) said

We welcome the government’s Clean Energy Sector Plan and its clear commitment to creating high-quality, secure jobs – not just any jobs.

The explicit pledge to a new generation of good industrial jobs will strike a chord with workers from Teesside to Merseyside, many of whom felt left abandoned by the last government’s failure to act.

We strongly support the launch of the UK’s first-ever Clean Energy Workforce Strategy – a vital recognition that workers are central to both our economy and the clean energy transition.

By prioritising sectors like nuclear fusion, nuclear fission, and offshore wind, the government is showing a serious commitment to a balanced, resilient energy mix.

The TUC backs the ambition to ‘Build it in Britain. Power the World’ and stands ready to help make it a reality.

Charlotte Brumpton-Childs, National Officer at GMB

This strategy is a welcome shift, recognising that Britain’s clean energy future must be built here, by skilled workers in secure, union jobs. For too long, energy policy has meant offshoring opportunity and hollowing out industry.

If delivered properly, this plan could help turn that tide. GMB will work to make sure these promises translate into real investment, real jobs, and a just transition that puts working people at the heart of our industrial future.

Sue Ferns, Senior Deputy General Secretary at Prospect union said

Boosting clean energy is not only an important mission in its own right, it is central to the success of every other sector. It is welcome to see the government doubling down on this mission, focusing investment on key technologies like renewables and nuclear energy, and recognising the key role that trade unions play as partners in this strategy.

Securing the investment is important, but perhaps the biggest challenge in this area is around the workforce. The energy workforce is undergoing an unprecedented transition, which creates opportunities for many but also serious challenges that need to be addressed.

Delivering on this strategy in a way which creates prosperity and supports jobs will require the government’s forthcoming energy workforce plan to be as ambitious as possible and fully backed by all parts of government.

David Hall, VP, Power Systems, Schneider Electric, said

The Clean Energy Industries Sector Plan will help to provide much needed certainty for businesses and investors. We welcome the recognition of electricity networks as a ‘foundational sector’ and look forward to working with the Government to develop an electricity networks growth plan.

We also welcome the commitment to phasing out SF6 gas – a potent greenhouse gas – from switchgear. Regulatory certainty on this issue is key for manufacturers like Schneider Electric who are committed to invest in our domestic capabilities and support the decarbonisation of the grid.

Schneider Electric is a key supplier of the electrical infrastructure powering the UK’s electricity networks. Over the past two years we have invested almost £50 million to further boost the UK’s domestic supply chain, including investing £42 million to build a brand new factory in Scarborough, North Yorkshire.

Vattenfall’s UK Country Manager, Claus Wattendrup, said

The government is right to back clean energy as a growth engine for UK jobs and skills. Offshore wind already supports over 50,000 UK jobs and is scaling up fast through initiatives like the Offshore Wind Industrial Growth Plan, and we now await the government’s Onshore Wind strategy to help unlock even more investment, jobs, and energy security.

We must avoid own-goals along the way, however the benefits of district heating must not be overlooked, whereas zonal pricing in Great Britain risks future investments without cutting bills.

Dhara Vyas, CEO of Energy UK, said

Energy UK welcomes the government’s new Industrial Strategy and Clean Energy Industries sector plan, which rightly recognise the pivotal role energy will play across the whole economy, powering growth through digitalisation and electrification, boosting regional prosperity and delivering economic security and resilience.

Stable, affordable energy prices will help ensure that the UK remains a competitive place to do business, and in an increasingly uncertain global operating environment, clean power will deliver energy security. Focussing on priority technologies where the UK has global expertise will deliver a strong competitive advantage for our businesses and economy.

We know the investment necessary to decarbonise the economy will mostly be funded by the private sector. Clarity on government policy, removal of the barriers to investment and targeted support are all essential to meet this ambition.

Jane Cooper, Deputy CEO of RenewableUK, said

Today’s industrial strategy identifies clean energy as one of the sectors with the highest growth opportunity, and we are going to see tens of billions of pounds of new investment in wind energy, grid and hydrogen in the coming years. With that new infrastructure comes a golden opportunity to secure new jobs, manufacturing, innovation and exports, in the growing industrial clusters across the UK, in areas like the Humber, Scotland, South Wales, the South West and Teesside.

There are already nearly 2,000 companies in the UK who have benefitted from contracts to deliver work in the wind energy sector. Collectively, wind energy currently employs 55,000 people, a figure which has risen by a quarter from two years ago. By keeping a laser focus, as this Industrial Strategy does, on unlocking investment, remaining competitive, and supporting UK companies to innovate and grow, the offshore wind supply chain alone could boost the UK economy by £25 billion over the next decade.

The opportunity and vision is there, now government needs to ensure they deliver on the critical aspects of this industrial strategy. Most notably for renewables, that means ensuring the next two contract for difference allocation round are as successful as possible, clearing large volumes of projects in a stable market framework to reduce costs. This is essential if we want to attract investment in the UK’s supply chain, skills and capabilities.

Claire Mack OBE, Chief Executive of Scottish Renewables, said

Placing clean energy at the heart of the new industrial strategy is a vote of confidence in the enormous economic growth potential of Scotland’s renewable energy industry and supply chain. The scale of opportunity is clear with sectors like offshore wind expected to generate £35 billion for the economy, helping to deliver good jobs and energy security.

Scottish Renewables has been urging the UK government to be bold in removing barriers to investment and we’re pleased to see the ambition outlined in this strategy, including measures to build a grid fit for the future, drive competitive supply chains and grow exports.

In the years ahead, success will be seen in the delivery of new clean energy infrastructure, thriving supply chains and skilled jobs across Scotland. Our industry stands ready to continue meeting that challenge head on.

Olivia Powis, CEO of the Carbon Capture and Storage Association (CCSA), said

We are delighted to see the Government’s continued commitment to Carbon Capture, Utilisation & Storage (CCUS), including Greenhouse Gas Removals (GGRs), as a frontier industry. This rightly positions CCUS and GGRs as a core pillar in delivering on three vital national objectives reaching net zero, driving regional growth, and strengthening economic security.

The UK’s CCUS industry stands ready to deliver and is pleased to see government’s prioritisation of cross-border CO₂ transport and storage networks in the North Sea, recognising the significant economic benefits for both UK and EU CCUS projects. This builds on the positive momentum from the recent UK-EU Summit – alongside the support confirmed in the Spending Review.

Following these government commitments, a clear timetable for deployment is essential to secure investment, as well as investment in scaling up supply chains and growing the workforce needed to deliver at pace. With continued partnership between government and industry, CCUS can anchor a new era of sustainable industrial growth – one that revitalises communities, boosts energy resilience and ensures the UK leads in tackling climate change.

Charlotte Lee, Chief Executive of the Heat Pump Association said

It is great to see heat pumps, and by association heating systems, being listed as a frontier industry within the plan and identified as one of six areas with the highest growth potential.

With a new Heat Pump Investment Accelerator Competition confirmed, £13.2 billion recently announced for the Warm Homes Plan alongside a clear timeline for the introduction of the Future Homes Standard and a pledge to expand heat networks, it is clear the government are committed to enhancing the UK’s energy security by decarbonising heat from buildings.

Whilst we await the detail within the Warm Homes Plan, this strategy sets clear intentions for the sector, and the HPA will continue to work closely with government to support their missions to break down barriers to investment and deliver nationwide growth.

Clare Jackson, CEO at Hydrogen UK, said

The UK can, and should, lead the world in hydrogen, creating jobs and skills, driving economic growth, and lowering emissions. With hydrogen as a key pillar, the Industrial Strategy and Clean Energy Industries Sector Plan are welcome, positive steps forward to achieving that goal, with strong policy signals and funding to match.

The Clean Energy Industries Sector Plan in particular acknowledges hydrogen’s economic and export potential, and we look forward to working with the government as it puts these strategies into practice.

Dr Emma Guthrie, CEO of the Hydrogen Energy Association (HEA) said

We welcome the publication of the Clean Energy Industries Sector Plan and the clear recognition of hydrogen as a central pillar in the UK’s clean industrial future.

The commitment to a dedicated hydrogen sector plan – 1 of 8 outlined across key growth industries – provides the clarity and direction that hydrogen investors, innovators and infrastructure providers urgently need.

The extension of the Clean Industry Bonus to hydrogen is a particularly positive step, signalling that government recognises the role hydrogen can play in decarbonising heavy industry and strengthening energy resilience.

The wider Industrial Strategy’s focus on reducing energy costs, accelerating grid connections and supporting frontier technologies reflects many of the priorities the hydrogen industry has long been calling for.

We now look forward to working closely with government and industry to ensure this strategy delivers tangible outcomes – unlocking investment, creating skilled green jobs, and accelerating the transition to a low-carbon economy.

Yselkla Farmer, CEO at BEAMA said

BEAMA’s members are pleased that our calls for improvements to industrial conditions have been recognised. This long term strategy distinguishes electricity networks and electric heat – uniquely, both represented by BEAMA – as critical sectors for the UK’s economic prosperity. They have the potential to deliver significant benefits to consumers and those seeking excellent employment opportunities in our domestic supply chains.

We are well aligned with the government’s overall vision and objectives for our sector. We are looking forward to keeping the momentum up over the ten years of this strategy, working with government to bring tangible change and hugely increase investment in our members’ markets, with specific benefit to British manufacturing. In addition to some further measures from upcoming policy announcements, this strategy has the potential to build on our existing strengths for an exciting future.

We are especially pleased to see the level of financial support being targeted for BEAMA sectors through GB Energy, the National Wealth Fund and the British Business Bank and our hope is this can help bring forward investment in UK manufacturing to supply the UK’s electrification needs across the grid and in homes. The decision to reduce electricity costs for the IS-8 manufacturing sectors is an incredibly welcome step as we strive to ensure we can compete for investment globally.

Stuart Dossett, Senior Policy Adviser at Green Alliance, said 

As international events threaten to drive up the price of oil and send bills soaring once again, it is vital the government look at how to make the UK energy secure. If we’re successful in doubling the amount of investment in clean energy over the next ten years, as the government proposes today, this will provide the cheap, secure power we need for the rest of the economy to grow. The government is also right to focus on making sure more homegrown renewable energy results in cheaper electricity costs for businesses. 

Darren Davidson, Head of UK, Siemens Energy said

Today’s Industrial Strategy announcement, a 10-year UK government plan focused on partnership with business, is welcome news. As one of the world’s leading energy technology companies Siemens Energy has invested significantly in the UK, and we already employ over 6,500 people working on energy projects across the regions.

The new plan is a significant step forward in helping to create a coherent, strategic policy framework – including funding support – to help strengthen the UK’s industrial base, encourage job creation and deliver the energy transition.