Category: Energy

  • Miatta Fahnbulleh – 2026 Speech on the Future of our Energy System

    Miatta Fahnbulleh – 2026 Speech on the Future of our Energy System

    The speech made by Miatta Fahnbulleh, the Energy Minister, in London on 14 October 2026.

    Good afternoon.

    It is a pleasure to be here and I would like to say a huge thank you to Energy UK for bringing us all together.

    You have heard today about the choices facing our energy system.

    And I want to spend our time together talking about what it will take to build its future and the partnership between government and industry that will make this possible.

    That starts with recognising what the people in this room do. You keep the country powered. You invest in our infrastructure, develop our people and build the projects on which our future depends.

    You know what it takes to turn ambition into investment and investment into something people can see around them.

    And you continued to do that through years of economic and political uncertainty.

    So I just wanted to start by saying thank you to each and every one of you for everything you have done to get us to this point – and for the work I hope we will do together in the months and years ahead.

    And that work begins with our ambition as a government to deliver a 10-year plan for national renewal.

    One that unlocks growth in every single postcode.

    Reindustrialises parts of the country that have been held back.

    And ensures that people have the basics to live well.

    In a Britain that is confident, that is forward-looking and that is hopeful.

    And energy has an absolutely vital role to play in that.

    An everyday essential that we all rely on.

    But one that is increasingly unaffordable for too many families and too many businesses.

    In a system that is simply not working for them as consumers.

    Now look I know that this is not a reality that any of us can be happy with – and it is one we are absolutely determined to turn around as a government.

    And we have taken the next steps for the drive for homegrown clean power.

    We all know that one of the reasons we are seeing rising prices is because we are uniquely exposed to volatile global fossil fuel markets.

    Which means that conflicts miles away in Ukraine and now the Middle East reverberate deeply in people’s pockets.

    That’s why our ambition to deliver homegrown clean power is so important and is why we set it out when we came into government.

    Now I know there are a few raised eyebrows, but look the point wasn’t just about the target itself, but the confidence and momentum it would create in the system.

    And what we have delivered in partnership in just 2 years in pursuit of this mission has been incredibly impressive.

    £100 billion of private investment in clean power unlocked.

    Enough clean power consented to power over 20 million homes.

    189 terawatt hours of clean power delivered last year.

    And over the course of 2025, almost two-thirds of Britain’s electricity generation came from clean power.

    Huge progress – and we will continue to play our part to sustain this momentum.

    But we know the public doesn’t measure the success of our energy system in gigawatts.

    They measure it in bills and whether they can live comfortably.

    And by these measures, the framework within which you are being asked to deliver is not working.

    That is not a criticism of the businesses that have invested, built and innovated within it.

    It is a recognition that even the best companies cannot compensate for a system that lacks sufficient coordination and long-term direction.

    That is failing in its purpose of providing this essential good to the British people at a reasonable cost.

    So let’s be clear with how we got here.

    And look I often say, if you have a blank piece of paper, and you can design the energy system, would you design the system we have now? Probably not.

    So I think it is important we are honest about where Britain went wrong.

    The privatisation of the energy system changed more than the ownership of individual assets.

    Generation, transmission, distribution and retail were separated into different parts of the system.

    And those reforms changed the state’s relationship with the energy system.

    Government moved away from direct ownership and coordination.

    Responsibility was carved up, and farmed out across companies, regulators, network operators and public bodies.

    And when responsibility fragments, accountability weakens.

    Successive governments recognised that markets alone could not make every decision the country required.

    So, they introduced targets, created new regulation, new frameworks.

    And the cumulative effect of all these interventions was that central government and regulators ended up micromanaging the system, often with imperfect information.

    The result was neither free market, nor public direction. It was a system in which industry was often asked to deliver without the infrastructure, certainty or joined-up decision-making it needed.

    And crucially, the state never really left the energy system.

    Because it can’t.

    The idea that the state could be absent from providing a service as critical as energy was fundamentally flawed from the outset.

    The state cannot – it cannot – relinquish responsibility for keeping the lights on.

    For protecting consumers.

    For maintaining national security.

    Or for preparing the system for the future.

    So government returned through regulation, subsidy, contracts, targets and interventions.

    But it never resolved the fundamental question of how to make our energy system work for the families and businesses it is there to serve.

    And we are now living with the consequences of that.

    We have inherited an energy system that is too exposed to volatile global markets.

    We have projects ready to invest and businesses ready to expand, but can’t secure timely connections.

    We have renewable power available in a system that still pays generators to turn down their output because the network cannot always use or move that power efficiently.

    And we have families who want lower bills, but who are locked out from accessing cheaper electricity because they cannot upgrade their homes.

    When energy suppliers failed during the last energy crisis, 4 million households were affected and customers were left carrying £2.7 billion in costs.

    And look, these are not isolated problems.

    They show what happens when the system as a whole lacks sufficient coherence and accountability.

    A system can have ambitious targets.

    It can have willing investors.

    It can have viable projects.

    But if the networks cannot connect them, those ambitions remain on paper.

    If people do not see and feel the benefits of them, the system loses the confidence of the public.

    So the answer cannot simply be another layer of targets.

    That is why piecemeal reform is no longer enough.

    Stronger consumer protection matters. Of course it does.

    A more powerful and effective Ofgem matters. Of course it does. And we’re driving forwards with those reforms.

    But our ambition must be greater than making another adjustment to the model that we have.

    Our task is to make the whole system work coherently in the interest of the consumers that we serve.

    Now that requires us to be clear about the choices that are in front of us.

    There are some choices that will make sense for the state to step in.

    There are some choices where competition, private investment and innovation have a vital role to play.

    And there are those that should sit closer to communities, giving people the freedom and opportunity to shape the energy future of their places.

    But the choice is not a binary between state or market.

    That is a false choice.

    Many countries around the world, with far lower electricity prices than ours, combine public ownership with vibrant markets.

    So the real question is: who is best placed to do what?

    Where should government set the strategic direction and establish firm rules?

    Where should businesses have the operational freedom to compete, to innovate and deliver?

    And where should communities have the power to lead, participate and benefit?

    The purpose of reform should be to accelerate delivery, not to pause it.

    To give investors greater certainty, not less.

    And to replace accumulated uncertainty with clear responsibilities, freedom and accountability for the system to deliver.

    And this is precisely the purpose of Great British Energy.

    Giving the state the ability to do more than regulate industry and its decisions again.

    Instead, creating the capability to invest directly.

    Develop projects, build partnerships and take a longer view.

    Entering parts of the market where the strategic value is high, even when the immediate commercial incentives aren’t obvious.

    Ensuring that more of the value created by Britain’s natural resources is retained for the benefit of the British people.

    Ensuring the public have a direct stake in the energy assets that will shape our economic future.

    And we can already see what practical public investment means.

    Take the Sizewell C nuclear power station for example. My department is the primary public shareholder, alongside private consortium partners.

    Taxpayers will see up to £18 billion in net consumer benefits and we’ll reduce overall electricity system costs by roughly £2 billion per year compared to other routes to net zero.

    Lower costs.

    Good jobs, buoyant supply chains, greater security.

    Great British Energy working alongside private investors.

    Building capability in technologies and supply chains where Britain has a strategic interest.

    And helping shape markets rather than merely responding to them.

    The same principle underpins Great British Grid that the Prime Minister announced at conference.

    We cannot, we cannot deliver cheaper power if viable projects remain stuck in a queue.

    We cannot electrify industry if businesses cannot get the connections they need.

    And we cannot build a more secure energy system if generation, networks and demand are planned as separate challenges.

    Great British Grid is about acknowledging what industry has been telling us – projects cannot be delivered at the required scale unless network planning, connections and investment are treated as a strategic national priority.

    Great British Grid will provide additional public investment and dedicated leadership, working alongside existing network operators and private investors.

    It will enable the vital grid upgrades needed after decades of underinvestment, helping to reduce constraint costs and meet rising electricity demand.

    This is the shift that we want to see from fragmentation to coordination.

    But of course, of course, the number one test for reforming our energy system must be whether it benefits people. And that is the ultimate test we will apply in everything we do as a department.

    Whether families and businesses can afford the energy they use.

    Now there are short-term reliefs that we must provide to give people some breathing room. And we know that and we understand that particularly in the current context.

    That’s why one of the first thing’s the Prime Minister did when he came into office was to cut VAT on energy bills, building on the £150 off the costs of energy bills that we did in the Budget last year. 

    And the expansion of the £150 Warm Home Discount to over 6 million families.

    So we know we need to do our part to give people breathing room.

    But this cannot be a substitute for the big changes we need to deliver in the energy system to drive down energy costs for good. And we are very clear as a government this is our responsibility and this is the moment we must grip this.

    Now I have given you a top-down view as you will expect.

    But I am really clear these reforms cannot simply be mandated from Whitehall.

    They will be delivered hand in hand with the people, places and communities that must see the benefits.

    When communities host the infrastructure that powers Britain’s future, they should share fairly in the rewards.

    Places shouldn’t host the transition. They should have a stake in it.

    So we will back local energy, support greater community participation and put a fairer relationship between clean-energy infrastructure and the communities hosting it.

    Through Great British Energy, which will support over 1,000 community and local energy projects by 2030.

    We will pave the way for communities to own more of the renewable energy projects built in their area and share more directly in the benefits of the clean power transition.

    And vitally we will put our communities at the centre of delivering the Warm Homes Plan.

    Devolving funding so regional and local government can play a critical role in co-ordinating and accelerating the pace of home and building upgrades that we absolutely need to see over the course of the next decade.

    So that we can insulate, solar, clean heat and smart technology street by street, state by state, community by community.

    So that people can directly benefit from the drive towards electrification.

    There’s a lot of work that I know we need to do together.

    There will be those who say you should slow down.

    That the answer is to build less.

    To reform less.

    To relinquish control.

    To blindly place our faith in the established way of doing things.

    But I believe that we must seize the opportunity of this moment as we must make this transition.

    And to do that, we’ve got to be ambitious.

    And we can only do that with clear strategic direction from government.

    With certainty, opportunity and autonomy for industry in the right parts of the system.

    And a stronger voice for communities.

    The need for the energy transition is real and urgent. And for those that question that, I simply say look at the summer we’ve just had. Record heatwaves, droughts, wildfires. They are an indication that climate change is there and we have got to do our part to respond to it.

    And in this transition which is accelerating every day in the UK and all around the world.

    The UK’s net zero economy now generates around £105 billion in Gross Value Added and supports 1.1 million full-time equivalent jobs, spanning energy, manufacturing, construction, engineering and professional services.

    Oil and gas will of course remain part of our energy mix for decades to come.

    And we will bring these vital communities with us as we move towards mass electrification and renewable power.

    Because the UK must be a leader for making the transition work for all people.

    And all of you here today are world leaders.

    You are the backbone of the energy system that we must build and of the future economy that we must build.

    So what we do and what that looks like, we must do in partnership. And that brings some questions, what do we want the end goal to look like?

    More control over the sources of our power, the level of our bills, the infrastructure that forms the bones of our economy?

    Or less?

    Do we want more certainty for businesses to invest? Or do we want less?

    Or remaining overexposed every time a crisis overseas shakes fossil fuel markets, is that the reality that we want? Or less?

    These are the big questions that we’ll be asking all of you and of ourselves.

    But for me we are really clear there’s an absolute imperative for government to grip this.

    There is an absolute imperative for the state to provide direction.

    To build public capability.

    To invest where the national interest demands it.

    And to create the conditions in which we collectively make to ensure businesses can invest, can build the infrastructure that we need, and can get us to an energy system that does the very simple job of ensuring this essential good – not a luxury – a basic that everyone needs, is provided to people at a cost that is affordable.

    And look, the commitment that you have from me is, from my department and from all of government is to do everything that we can to work in partnership to get there. We will play our part because the stakes are far too high.

    But I hope you are all willing to go on this journey with us.

    And to work in partnership to deliver the energy future that I believe we can.

    Thank you.

  • Andrew Bowie – 2026 Statement on North Sea Oil

    Andrew Bowie – 2026 Statement on North Sea Oil

    The statement made by Andrew Bowie, the Conservative MP for West Aberdeenshire and Kincardine, on 22 September 2026.

    We are on the brink of a serious oil supply shock in Europe.

    We are sending RAF planes to support the Saudi’s re-secure shipping routes and pipelines.

    Diesel is about to cross $2 a litre.

    And yet, in spite all of that, it remains the policy of this Labour Government to ban new oil licences in our own North Sea!

    And they still refuse to approve Rosebank.

    It isn’t just mad, it is unforgivable. A complete and utter dereliction of duty.

    Energy Security IS National Security. Labour can’t be trusted with either.

  • Michael Shanks – 2026 Statement on Blackout Risk

    Michael Shanks – 2026 Statement on Blackout Risk

    The statement made by Michael Shanks, the Minister for Energy, in the House of Commons on 15 July 2026.

    On 7 July, the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), wrote to the Government alleging practices of poor information handling in NESO and interference in operational decision-making in the control room. The Government take this issue incredibly seriously. Since the allegations came to light, we have been engaging with NESO and Ofgem to establish the facts. Both my right hon. Friend the Secretary of State and I have spoken to the chief executive of NESO.

    NESO has now appointed an external legal firm to conduct a full investigation into the claims, and a report is to be delivered to the board’s head of risk and controls and to Ofgem in the coming weeks. The legal firm will interview members of the control room, without any other NESO employees present. NESO has already responded publicly that all operational decisions are taken solely by authorised operational control room personnel, and that NESO does not instruct employees to avoid retaining records. We will work closely with Ofgem to monitor both the progress and the outcome of the investigation. However, it would be wrong to pre-empt that outcome, and the investigation must be allowed to run its course.

    I want to make it clear that during this period of unprecedented extreme heat, the Great British grid remains stable. No customers were impacted by tight electricity margins, and NESO had a number of tools available to ensure our energy security. Great Britain has one of the most resilient energy systems in the world, and the Government work closely with NESO and the wider sector to ensure that this resilience is constantly maintained. Market notices, such as those issued by NESO during the heatwaves, are standard operational tools that can be used to support energy security, and these were used successfully to maintain grid stability. However, it is important to acknowledge that extreme heat events, such as those experienced this summer, are likely to occur more frequently as our climate continues to change.

    My Department will continue to work with NESO and Ofgem to identify any lessons from these events, and to work to ensure that our electricity system remains resilient. Ofgem, as the independent regulator, is also working with NESO to initiate a formal review of events during the June heatwave. I welcome this important transparency, and look forward to working with NESO and Ofgem on taking forward the lessons learned.

  • Michael Shanks – 2026 Comments on Nuclear Power and Scotland

    Michael Shanks – 2026 Comments on Nuclear Power and Scotland

    The comments made by Michael Shanks, the Energy Minister, on 30 June 2026.

    For decades thousands of Scots have worked in the nuclear sector and provided the country with low-carbon, reliable power.

    This new report shows there is potential for new nuclear in Scotland, which could boost the country’s energy security and deliver new jobs.

    We are delivering a golden age of nuclear in England and Wales from Sizewell C to small modular reactors. Sadly Scotland is missing out on the enormous economic and energy security potential.

  • Ed Miliband – 2026 Comments on Clean Energy

    Ed Miliband – 2026 Comments on Clean Energy

    The comments made by Ed Miliband, the Secretary of State for Energy and Net Zero, on 2 June 2026.

    As Britain faces the second fossil fuel shock of the decade, the only way to protect family and business finances is to drive for clean homegrown power that we control.  

    What has been achieved so far by businesses and communities across the country is a great British success story – cutting costs by upgrading homes, backing British businesses, supporting one million good jobs according to new analysis from CBI Economics, and protecting our beautiful countryside.  

    Some people want to stick their heads in the sand and let our children face the consequences of climate breakdown – but this government believes in the timeless British value of protecting our country for generations to come.

  • Kemi Badenoch – 2026 Comments on Drilling Oil

    Kemi Badenoch – 2026 Comments on Drilling Oil

    The comments made by Kemi Badenoch, the Leader of the Opposition, on 28 May 2026.

    Ed Miliband’s ideological shut-down of Scotland’s North Sea Oil & Gas Industry is going to hand Vladimir Putin £1 billion in oil revenue. Our own oil is right there, under the North Sea. All we need to do is drill it. Only the Conservatives will get Britain drilling.

  • Kemi Badenoch – 2026 Comments on Energy Prices

    Kemi Badenoch – 2026 Comments on Energy Prices

    The comments made by Kemi Badenoch, the Leader of the Opposition, on 14 January 2026.

    Labour promised to cut your energy bills. The opposite has happened.

    Ed Miliband cares more about ideology and his vanity projects than saving you money.

    If Keir Starmer had a backbone, he would back the Conservative’s Cheap Power Plan, abandon the absurd Net Zero ideological zealotry, and lower bills for everyone now.

  • Michael Shanks – 2026 Statement on Prax Lindsey Oil Refinery

    Michael Shanks – 2026 Statement on Prax Lindsey Oil Refinery

    The statement made by Michael Shanks, the Minister for Energy, in the House of Commons on 6 January 2026.

    On 30 June 2025, I made an oral statement regarding the deeply disappointing news that Prax Lindsey oil refinery had entered insolvency, and I made a written ministerial statement on 1 July 2025. I also made a written ministerial statement on 22 July 2025 providing further information on the insolvency process led by the official receiver. Today, I am updating the House on the sale of the site and the assets.

    The insolvency process at PLOR is led by the court-appointed official receiver, who must act in accordance with his statutory duties and independently of Government.

    After a thorough process to identify a buyer for the site, the official receiver has determined Phillips 66 Ltd is the most credible bidder that can provide a viable future for this site. The sale is expected to complete in the first half of 2026.

    Phillips 66 is an experienced and credible operator, and this sale allows it to quickly expand operations at its neighbouring Humber refinery, with all remaining 250 staff guaranteed employment until the end of March 2026.

    Phillips 66 plans to integrate key assets into its Humber refinery operations. This will expand Phillips 66’s ability to supply fuel to UK customers from the Humber refinery, boosting domestic energy security, securing jobs including hundreds of new construction jobs over the next five years, and driving future growth opportunities for renewable and traditional fuels.

    This agreement marks the next step in securing an industrial future for the site and the workers, who were badly let down by their former owners.

    The former owners left the company in a poor state and gave the Government very little time to act. That is why the Energy Secretary immediately demanded the Insolvency Service launch an investigation into their conduct and the circumstances surrounding insolvency. That investigation is ongoing.

  • Ed Miliband – 2025 Speech to the Energy UK Conference

    Ed Miliband – 2025 Speech to the Energy UK Conference

    The speech made by Ed Miliband, the Secretary of State for Energy Security and Net Zero in London on 14 October 2025.

    Let me start by offering sincere thanks for Energy UK for hosting this conference.

    And I want to thank Dhara [Vyas] for your leadership over the last year as CEO, can you join me in giving this tribute.

    You are a brilliant champion of this industry.

    Coming here today I am once again reminded that it is an incredibly exciting time for the energy sector.

    Wherever you work, there is a sense of huge possibility for the future—and I want to thank you all for the work you are doing.

    And I am incredibly proud of everything we have achieved together over the last 15 months, it has only been possible because of our work together, including:

    Consenting record amounts of clean energy, enough to power the equivalent of more than 7.5 million homes—including just today Tillbridge solar farm, which alone will power hundreds of thousands of homes.

    We are ending the first come first served grid connections queue.

    Introducing the biggest reform of planning in a generation.

    Setting up Great British Energy.

    Investing in the biggest nuclear building programme in half a century.

    And kickstarting our carbon capture and hydrogen industries.

    None of this would have been possible without your advice, support and delivery.

    All these achievements speaks to a wider purpose, which I believe unites so many people in this room.

    Building our country’s clean energy future as part of a bigger vision of a fairer, more prosperous economy.

    Soon we’ll publish our Clean Energy Jobs Plan, which will show not just the hundreds of thousands of good jobs that already exist in this sector, but also the hundreds of thousands of new jobs we expect to be created by 2030. This making a difference.

    But of course, we also know that creating an economy for the many involves tackling the long-running cost of living crisis that so many people face.

    And that’s what I want to focus on today.

    We will be judged on the success of our mission in delivering for consumers, and rightly so.

    My case today is this:

    First, our exposure to fossil fuel markets remains the Achilles heel of our energy system, keeping bills high and giving us no long-term certainty over price.

    Second, that we face further challenges of historic under-investment in our energy system and growing electricity demand. The choice for the future is therefore what kind of energy system we want to build, not whether we want to build it at all. 

    Third, building clean energy is the right choice for the country because, despite the challenges, it is the only route to a system that can reliably bring down bills for good, and give us clean energy abundance.

    Fourth, as we build this new infrastructure, the government is determined to work with you to bring the benefits to families and businesses as quickly as possible.

    First, memories can be short in Westminster.

    But we should never forget the huge damage to family finances, business finances and the public finances caused by the energy shock we have been through in recent years—a shock that still reverberates today.

    And the reason for this damage is because the UK was and is so exposed to international fossil fuel markets due to our dependence on gas across the economy.

    Even today, wholesale gas costs for households are still 75% higher than before the energy crisis.

    If they were at pre-crisis levels, bills would be more than £200 a year lower than they are today for families.

    The same story applies to business.

    Industrial electricity prices soared at the start of the energy crisis and have remained stuck at high levels.

    So while it is true we have inherited a system of paying for network and other costs which is less weighted towards public spending than other countries, a large part of the issue facing industry in the UK is our exposure to fossil fuels.

    As UK Steel said earlier this year when talking about why energy intensive industries like theirs pay higher electricity prices in the UK than our European competitors:

    “The main driver of the price disparity is now wholesale electricity costs, driven by the UK’s reliance on natural gas power generation.”

    Going back further, this has been a long-standing weakness at the heart of the British economy and society, with half of our recessions since 1970 caused by fossil fuel shocks.

    And looking forward it remains a massive risk, particularly at a time of global instability.

    According to the Office for Budget Responsibility, if gas price spikes occurred even once every decade, it could cost the UK between 2 to 3% of GDP annually.

    So anyone who tells you we can solve the issues of energy security and affordability without addressing our reliance on fossil fuels seems to me to be ignoring the evidence before our eyes and this country’s painful recent experience.

    Second, this of course is not the only challenge we face in our energy system.

    In the years ahead, we expect a massive increase in electricity demand—around 50% by 2035 and a more than doubling by 2050.

    This is a massive opportunity for us.

    We want as a country to seize the opportunities of electric vehicles that are cheaper to run, new industries such as AI, and the benefits of electrification across the economy.

    But this task is made harder by the legacy of decades of under-investment in energy in this country to overcome.

    Whatever power sources they favour, people need to confront this reality.

    Much of the UK’s current nuclear fleet began operating in the 1980s and we haven’t brought a new nuclear power station onto the system since Sizewell B 30 years ago.

    At the same time, according to NESO, half the existing gas fleet has already been operating for over 20 years.

    To listen to some people talk, you would think there was a free pass to just carry on using unlimited gas from existing stations for the next few decades, but that is simply not the case.

    Of course, we could decide to stop building renewables and just rely on a whole new fleet of gas-fired power stations, but we need to be candid that this would involve the costs of building not just operating these plants.

    And the underinvestment we face isn’t just about generation:

    Much of the electricity grid was built in the 1960s and hasn’t been upgraded since.

    So the reality is there is no alternative to investment in both generation and the network to keep the power system running and seize the opportunities and meet the needs of the future.

    If the question therefore is not whether to build but what to build, the third part of my remarks is about why the government believes clean power is the right choice for the country.

    Let’s be absolutely clear what the cheapest sources of power are in this country, according to levelised cost estimates.

    Solar power and onshore wind.

    Strike prices for solar and onshore wind in our last auction, AR6, were nearly 50% cheaper than the levelised cost estimate to build and operate a new gas plant.

    Offshore wind, despite global cost pressures, was also cheaper than new gas.

    At a systems level, the prize of a renewables-based system, supported by nuclear and other technologies, is clear:

    It gets us off the fossil fuel rollercoaster, reducing our exposure as a country. Clean power 2030 will mean volatile gas sets the wholesale electricity price much less often than today.

    It is homegrown clean energy, which cannot be weaponised by dictators or petrostates, giving us much greater energy sovereignty.

    And it will significantly lower the wholesale costs of electricity, which will benefit heavy industry and has the potential to bring down consumer bills for good.

    At the same time, of course, wholesale prices aren’t the only costs paid for by consumers, and we need to fund investment in energy infrastructure—including in the upgrade that is now sorely needed because of previous neglect.

    In 2023 the previous government estimated four times as much transmission infrastructure needed to be built by the end of the decade as had been built since 1990.

    That network infrastructure is what is now being delivered under this government.

    Even taking this investment into account, the independent Climate Change Committee was clear in its Carbon Budget 7 advice:

    “As the electricity system decarbonises, with wind and solar displacing unabated gas, the underlying costs of electricity supply are expected to fall over time.”

    Of course, in this majority renewables system we are building, we will need a mix of energy technologies.

    That is why we are driving forward on renewables, nuclear, storage, CCUS, hydrogen, and gas will continue to play an important backup role for some time to come.

    Now as I have said, people are entitled to advocate for more fossil fuels and less, or even no more renewables as part of this mix.

    But here is the reality:

    They would leave us more exposed because we don’t control the price.

    They are more expensive to build and operate.

    They would leave us losing out in the global race for the jobs, investment and industries of the future.

    And they would drive a coach and horses through our efforts to tackle the climate crisis.

    That is why we believe that clean power is the right choice for the country.

    And the task ahead is to bear down on the costs of building, which face significant upward pressures, and work relentlessly to translate the lower wholesale costs of clean power into lower bills for consumers.

    As we face these challenges, we are looking at all the tools at our disposal:

    How public investment can help reduce costs, as we are doing through Sizewell C, for example.

    Using Reformed National Pricing to plan and build a more efficient system, which provides the right incentives to build the right generation in the right places. This is crucial to reduce constraint costs.

    And relentlessly focussing on value for money in each and every decision, as we have done for example by halving the subsidy for Drax power generation.

    And this approach will be what we apply to the upcoming auction round, AR7, and beyond, where delivering value for money is our top priority.

    We have made reforms to the auction to maximise competition between bidders and reduce the costs to consumers.

    And there are multiple pathways and technology mixes that can get us to clean power 2030.

    I want to be clear:

    We won’t buy at any price and if specific technologies aren’t competitive, we will look elsewhere.

    We will take the long-term decisions to secure the right amount of capacity at the right price for the country.

    In the coming weeks I will set the initial budget for AR7, working with the Treasury, and we will only go beyond it if it delivers clear value for money.

    As we drive towards clean power, we know that many are struggling with their bills now.

    And that takes me to the fourth part of my remarks about what we are doing to help families and businesses.

    This winter we are expanding the Warm Home Discount to give nearly three million more families on the lowest incomes £150 off their energy bills.

    We are increasing support for 7,000 energy intensive businesses.

    And we will shortly publish our Warm Homes Plan, kicking off Britain’s biggest programme of home upgrades in generations.

    Backed by £13.2 billion of public investment to upgrade up to 5 million homes over this parliament.

    The Warm Homes Plan will help families with the costs of solar, batteries, heat pumps and insulation to lower bills and tackle fuel poverty.

    In this room, we all know the potential this has to bring the benefit of clean electricity to people and lower their bills.

    This is something consumers with the means to do so are already taking advantage of.

    We want to spread those benefits much more widely so that this is not just a privilege for those who can afford it.

    Alongside this, we will reform the system of consumer protection and advice to help families make the choices that work for them and ensure the highest standards of installation.

    We also want to go further.

    That is why we will ensure new homes are built with solar and clean heating as standard.

    A common-sense policy which has been demanded by the public, championed by this industry, and will be delivered with the Future Homes Standard.

    And we don’t just want to stop at new homes.

    Solar power offers a cheap and quick way for people to generate their own energy and cut their bills by hundreds of pounds a year.

    Currently just 1.5 million homes—around 1 in 20—have solar panels installed.

    This is a massive opportunity to cut bills using the free resource of the sun.

    I am determined to extend this possibility to millions more families and I want to work with you to do it.

    So this is our plan: pursuing clean power by 2030 and bringing the benefits to families as quickly as possible to help with the pressures of affordability that so many face.

    The final point I want to make is this.

    There are two roads opening up for Britain, in a way that hasn’t been true for the last two decades.

    One road, a sprint to clean power—a partnership between industry and government.

    The other road, doubling down on our exposure to fossil fuels and turning our back not just on the progress in clean energy of the last 15 months but on the partnership of government and business over many decades.

    Going down this road would lose:

    The good jobs from the best economic opportunity of the 21st century.

    The energy security and sovereignty within our reach.

    And of course, our efforts on the climate crisis.

    Indeed, waving the white flag in the climate fight would mean we were rightly held in infamy by future generations.

    Now of course the breakdown of this consensus poses a challenge to our shared agenda.

    I am really confident we can persuade people that the road we have chosen is the right one.

    Because the country wants a positive vision and hope for the future and you are all in the hope business. I spoke to an apprentice at Sizewell C and he was buzzing about the opportunity and there will be many others.

    This country wants hope and optimism. 

    Because it is in our economic interests as a country.

    And because it is the answer to the affordability challenges that families and businesses face.

    I feel humbled to be Energy Secretary.

    Together I am determined we will make the right decisions in the months and years ahead to show the British people how our shared agenda can deliver for them.

  • Andrew Bowie – 2025 Speech on Energy Grid Resilience

    Andrew Bowie – 2025 Speech on Energy Grid Resilience

    The speech made by Andrew Bowie, the Shadow Energy Minister, in the House of Commons on 30 April 2025.

    I thank the Minister for advance sight of his statement, and echo his comments; of course, the Conservatives’ thoughts are with all those affected by the blackouts in Spain, Portugal and more widely.

    The Minister rightly addresses concerns about the security of our grid in the context of the shutdown witnessed on the Iberian peninsula, and I am glad that he can confirm that he is carrying on implementing the recommendations from Exercise Mighty Oak, in which I was involved, on the action that would be required if such an event took place in GB. The primary responsibility of the Minister’s Department is to keep the lights on in this country. The images from Spain and Portugal are a sombre reminder of what happens when the grid fails. Extended blackouts are devastating, and it is a relief that power was restored to 99% of customers by 6 o’clock yesterday morning. The grid collapse in Iberia has demonstrated the fragility of the complex, interconnected systems that support modern life, and the very real impacts on human life of such a collapse.

    It is the Minister’s responsibility to ensure that the same thing does not happen in Great Britain, as the price for our economy and for communities across this country would be catastrophic. We cannot get away from the fact that this Government’s plans to rush ahead to build a grid that is entirely dependent on the wind and the sun in just five years’ time will make our electricity grid significantly less reliable.

    The stability of our electricity grid depends on what is called inertia, which is the ability for the system to resist destabilising fluctuations in frequency. It is the reason our grid has been so secure and resilient over the decades the Minister references. This inertia is provided by turbines, like those found in nuclear, hydro or, crucially, gas power stations, but it is not provided by solar or wind farms. If the grid does not have enough inertia to resist sudden changes in frequency, it can become destabilised, and cascading grid failure can occur. That means blackouts. As the Spanish NESO said in its latest annual report, the closure of conventional generation plants, such as coal, gas and nuclear, has reduced the firm power and balancing capacities of its grid, as well as its strength and inertia. This has also happened here in Great Britain. Data from NESO shows that the inertia in our grid has been steadily decreasing over time, as gas and coal have come off the system, to be replaced by wind and solar. This comes with a hefty price tag, which is the problem with so much of the Labour Government’s approach to energy security. Their imposed targets are saddling the British people with mountains of extra costs, as the Government rush ahead towards a power system that depends on the weather, rather than on firm, reliable baseload.

    Tens of billions of pounds are spent subsidising wind farms, expanding the grid, and providing back-up from reliable gas plants. The Government set their 2030 target, and now they are trying to work out how they can achieve it, but they refuse to be honest with the British people. They refuse to do an open and honest assessment of the costs and risks that come with this approach. It is no wonder that even Tony Blair has said that the present policy solutions are inadequate and doomed to fail.

    The Conservatives believe in a system that delivers secure, affordable and clean energy for the UK. A cyber-attack has been ruled out by the Spanish Government as a cause of their grid collapse, but we know that the threat of interference from hostile states is constant. Will the Minister update the House on the action he is taking to protect the grid from hostile activity? When will he finally tell us which single Minister is responsible for the safety and security of our offshore energy infrastructure?

    The lessons from the incident on the Iberian Peninsula are abundantly clear. We must retain inertia in our grid to keep it stable and resilient. Nuclear power provides vital baseload power generation, along with inertia, which would have helped to mitigate a cascading failure like the one earlier this week. Will the Minister give the nuclear industry the certainty that it is asking for, and commit to 24 GW of nuclear power, as the previous Government did? Will he ask NESO to provide this House with a full, transparent update on the role of inertia in our power system, on the consequences of declining inertia, on the impact that has on grid stability, and on the costs associated with it?

    Finally, the Minister has said that Great Britain has never experienced a complete shutdown such as that seen on the continent. What assurances can he offer this House that work is being undertaken, so that NESO and the National Grid are prepared for a black start, if ever that is needed?

    Michael Shanks

    I shall start with the more serious of the hon. Gentleman’s questions, and then, in reply to some of his other questions, I might gently remind him who was in office not that long ago. On a serious note, I agree entirely with him on his opening point: the first priority of my Department and the Government is to ensure our energy security. The past few days in Spain and Portugal have brought to light just how much of our day-to-day lives are dependent on a functioning electricity system, so he is right to make that point, and we are very aware of it.

    I am surprised that the hon. Gentleman did not recognise the work that the previous Government did on building the renewable system, and on introducing inertia into the system, because that all started a number of years ago. We have a resilient grid in this country, and it is important to continue to have that. That means building new grid infrastructure, which he and a number of his colleagues quite often oppose. It is important to build that grid infrastructure and to invest in it. We will continue to work with NESO and others to understand the full causes of this outage. I will not be drawn into speculation on what may have caused it, because clearly the first priority of the Spanish and Portuguese Governments has been restoring power, but they will carry out investigations to find out the cause, and we will implement any lessons from that.

    Finally, the hon. Gentleman was right to reflect on Operation Mighty Oak, which was carried out under the previous Government. We have been taking forward those recommendations right across government. My right hon. Friend the Chancellor of the Duchy of Lancaster is looking at resilience across Government. These are all important points. However, I say gently that energy security is an absolute priority for this Government, which means building the energy infrastructure that this country needs, and not opposing it at every turn.