Tag: Energy Security and Net Zero Department

The press release issued by the Department for Energy Security and Net Zero on 12 February 2025.

Energy Secretary travels to New Delhi to champion UK businesses, strengthen our partnership with India and accelerate work to tackle climate change.

The UK and India joined forces this week to unlock economic growth from the clean energy transition, supporting new jobs, creating export opportunities and tackling the climate crisis.

During a visit to New Delhi, the Energy Secretary Ed Miliband backed British businesses at India Energy Week – a major international energy event. He met with UK companies who are using their expertise to speed up India’s transition from fossil fuels to clean power, including offshore wind, solar, battery storage and hydrogen.

He met a number of UK companies who are using the UK’s world leading technology to speed up the global clean energy transition, create job opportunities and protect the climate. These include:

• Sherwood Power – Sherwood Power has developed energy storage technology that converts excess, low-cost, renewable energy into compressed air and heat. When demand is high, this stored energy is released to generate electricity, reducing grid load and customer costs. The company is based in Richmond, North Yorkshire.
• Oomph EV – Oomph EV designs and manufacture a range of rapid, mobile, electric vehicle charging solutions. They are addressing the Indian market with a view to local manufacture. They offer hardware, software and data services to the global EV market and are based in Cambridge.
• Flock Energy – London based Flock Energy is building the digital infrastructure for the global energy transition. Using advanced AI, Flock Energy enables energy providers to analyse customer energy data usage in detail, all on one digital platform, to improve demand forecasting, demand-side management and energy efficiency.
• Venterra Group – Venterra Group, established in 2021, is a London based offshore wind services company. Venterra operates globally with over 700 employees and specialises in providing comprehensive technical services across the wind farm lifecycle to reduce project risks, time, and costs.

India is one of the fastest growing economies in the world and one which is projected to be the fourth largest global importer by 2035. Delivering on the UK Government’s Plan for Change, the Energy Secretary used his visit to increase UK clean energy investment opportunities and place British businesses at the forefront of the global race for renewables.

As one of the world’s biggest emitters, working with India on clean energy and climate is crucial to protecting British families and businesses from the threat of climate change. Increasing investment in renewables and clean technology supports the government’s mission to become a clean energy superpower, protecting households from unstable fossil fuel markets and helping keep bills down for good.

Energy Secretary Ed Miliband said:

We are standing up for the British people by fighting for investment into our country, and setting the example for all countries play their part in protecting our planet for future generations.

The UK and India are strengthening our partnership under our Plan for Change to unlock investment and accelerate the global transition to clean, secure, affordable energy.

Both our countries are determined to address the climate emergency to protect our way of life, while reaping the rewards of the industrial and economic opportunity of our time.

The  Energy Secretary took part in the fourth UK-India Energy Dialogue with India’s Minister of Power Manohar Lal Khattar, and met with G20 Sherpa Amitabh Kant.

Both countries agreed:

• a new shared ambition on offshore wind, including a UK-India Offshore Wind Taskforce to drive the progress needed across the offshore wind supply chains and financing models
• funding to reform in India’s power sector to support decarbonisation through UKPACT, which aims to deliver grid transformation as part of India’s renewables rollout
• an extension of the bilateral Accelerating Smart Power and Renewable Energy in India (ASPIRE) programme, which will work to deliver round-the-clock power supply, accelerate industrial decarbonisation and roll out renewables

This builds on the UK and India’s close collaboration to tackle climate change through innovation agreed as part of the Technology Security Initiative in 2024, from using AI to increase resilience, to bringing together experts to safeguard the critical minerals needed for renewable technologies like wind turbines and batteries.

Talks come ahead of expected negotiations with India on a Free Trade Agreement and Bilateral Investment Treaty, led by the Business and Trade Secretary, at the end of the month.

Striking a deal would increase economic growth across both countries, facilitating the trade of renewable technologies and sustainable materials, supporting the government’s mission to become a clean energy superpower.

There are over 950 Indian-owned companies in the UK and over 650 UK companies in India supporting over 600,000 jobs and driving innovation across both economies.

Engagement with India comes ahead of COP30, due to take place in Brazil later this year, where both countries will be pushing for ambitious outcomes to address the climate emergency.

The press release issued by the Department for Energy Security and Net Zero on 7 February 2025.

Households across the country are set to benefit from cheaper bills and warmer homes as the government accelerates its Plan for Change.

Families have faced rocketing energy bills as a direct consequence of an overreliance on international gas markets, while at the same time thousands of tenants have been left exposed to cold, draughty homes, pushing bills up even higher.

The government is now calling time on this inheritance by consulting on bold new plans, which could save private renters £240 per year on average on their energy bills, with all private landlords in England and Wales mandated to meet higher energy performance ratings in their properties by 2030.

While 48% of private rented homes in England are already Energy Performance Certificate C or above, ministers now want to ensure this good practice is extended to all properties in the sector, making sure landlords are not undercut, while protecting tenants.

As of 2030 all private landlords will be required to meet a higher standard of Energy Performance Certificate (EPC) C or equivalent in their properties – up from the current level of EPC E.

This will deliver on the priorities of working people, in line with the Prime Minister’s Plan for Change, by requiring landlords to invest in measures such as loft insulation, cavity wall insulation or double glazing, ensuring homes are warmer and more affordable for tenants.

Deputy Prime Minister and Housing Secretary Angela Rayner said:

For far too long we have seen too many tenants plagued by shoddy and poor conditions in their homes and this government is taking swift action to right the wrongs of the past.

Through our Plan for Change we are driving up housing standards, improving quality of life, and slashing energy bills for working people and families.

Today is just one of many steps we are taking to deliver on our promise to transform the lives of millions of renters across the country, so families can put down roots and raise their children in secure and healthy homes.

Energy Secretary Ed Miliband said:

For years tenants have been abandoned and forgotten as opportunities to deliver warm homes and lower energy bills have been disregarded and ignored.

As part of our Plan for Change, these new changes could save renters £240 a year by raising the efficiency of homes to cut the cost of bills.

These plans will also make sure that all private landlords are investing in their properties, building on the good work of many to upgrade their homes to Energy Performance Certificate C or higher already.

The government is now seeking views from tenants and landlords on the proposals to boost living standards in the private rented sector and cut the cost of energy bills, which include:

• offering landlords a choice over how to meet energy efficiency standards. This will require them to meet a fabric standard through installing measures such as loft insulation, cavity wall insulation or double glazing, before moving on to a range of other options including batteries, solar panels and smart meters
• a maximum cap of £15,000 per property for landlords, with support currently available from the Boiler Upgrade Scheme, and Warm Homes: Local Grant which begins delivery this year
• an affordability exemption, which would lower the cost cap to £10,000 and could be applied based on lower rents or council tax band
• requiring all landlords to meet the new standard by 2030 at the latest, providing an extra 2 years compared with previous proposals. Homes that are already rated A-C before the introduction of new Energy Performance Certificates would be considered compliant until they expire

The government is also consulting on a revised fuel poverty strategy, which will focus on improving the energy performance of homes, supporting low-income households with energy affordability and protecting them from high prices.

Today’s steps mark further progress to deliver the government’s Plan for Change, putting more money in people’s pockets and rebuilding Britain.

This follows planned reforms to empower Ofgem, the energy regulator, to become a strong consumer champion, upgrading up to 300,000 homes through the Warm Homes Plan this financial year, and driving a new era of clean energy through the Clean Power Action Plan.

Stakeholder reaction

Rt Hon Caroline Flint, Chair of the Committee on Fuel Poverty, said:

Private rented sector tenants have far greater risk of being in fuel poverty particularly in low-cost older homes. The lack of investment by some landlords to end the scandal of cold homes has gone on for too long.

In the last 5 years the efforts to reduce fuel poverty flatlined. I welcome the focus on improving standards in the private rented sector and the opportunity to reset and re-energise England’s Fuel Poverty Strategy.

Adam Scorer, Chief Executive of National Energy Action said:

Alleviating fuel poverty means ensuring everyone can afford to keep their homes warm and healthy. It is about addressing high energy bills and inefficient homes, but it also contributes to other government missions, supporting efforts to reach net zero, preventing ill-health and tackling child poverty. A more vigorous, ambitious approach is very welcome to get back on track to lift millions out of the daily despair of a cold home and unaffordable bills.

Millions of households are struggling to pay their bills. A disproportionate number of these live in privately rented properties. Working towards stronger energy efficiency standards for landlords is the level of ambition needed to meet legal fuel poverty commitments. The private rented sector includes some of the worst quality housing, lived in by some of the most vulnerable people. We hope that these steps signal an end to fuel poor renters enduring in cold, leaky homes.

The UK government must now seize the opportunity that this new strategy and regulations bring, fortifying them with new spending to improve the homes of fuel poor households.

Charles Wood, Deputy Director at Energy UK, said:

This announcement marks a welcome recommitment from the government to improving energy efficiency standards in rented properties by strengthening Energy Performance Certificate (EPC) requirements. The most affordable energy is the energy we don’t use – yet too many households still lose money and warmth due to inefficient homes. With some of the least energy-efficient housing in Western Europe, there are serious financial and health consequences, particularly for renters who have little control over improving their homes.

With energy bills remaining high, it’s vital that the government prioritises measures that bring real savings to households and give clarity to the market to ramp up supply chains and training. Boosting energy efficiency is the most effective way to lower energy bills and system costs, and to create warmer, healthier homes for everyone.

Ben Twomey, Chief Executive at Generation Rent, said:

One in four private renters live in fuel poverty, the highest rate of any tenure. If we can’t afford to heat our homes properly that makes us vulnerable to ill-health and other problems in the home like damp and mould. Therefore, we encourage renters across the country to respond to this consultation to make sure the benefits of the Warm Homes plan are felt by tenants.

Madeleine Gabriel, director of sustainable future at Nesta, said:

Private renters too often face steep energy bills without a clear way to make their home more energy efficient. Private rented properties have worse energy efficiency ratings than both owner-occupied and social rented homes, while private renters are less confident taking energy efficiency measures like turning down boiler flow temperature than homeowners. The government is right to set a clear target for improving energy efficiency in the private rented sector and provide landlords with flexibility to achieve this.

Stew Horne, Head of policy at Energy Saving Trust, said;

With energy bills still high, it’s great to see the publication of the much anticipated consultation to get England closer to making the homes of private renters warmer and more affordable to heat.

With almost a fifth of homes across England being privately rented and around a quarter of these households living in fuel poverty, improving the energy efficiency of these properties is key to supporting a fair transition to a low carbon society. It will also be important to facilitate the changes landlords can make to upgrade private rented homes, including providing access to attractive green finance options.

We look forward to helping to shape the Warm Homes Plan so it encourages the retrofit of the private rented sector, creating more comfortable homes and lowering bills for renters.

Notes to editors

The average cost to landlords of complying with the proposals to upgrade their properties is estimated to be between £6,100 and £6,800 by 2030.

The press release issued by the Department for Energy Security and Net Zero on 5 February 2025.

Government relaunches an expanded Net Zero Council, bringing together business, civil society and local authorities to drive the clean energy transition as part of the Plan for Growth.

Leaders from major businesses, civil society and local authorities have backed the government’s pro-growth and clean energy superpower missions following a meeting of the relaunched Net Zero Council (5 February), with a plan to help sectors accelerate to net zero and support thousands of jobs.

Co-chaired by Energy Secretary Ed Miliband and Co-operative Group CEO Shirine Khoury-Haq, the Council brings together leaders from some of the UK’s biggest businesses, charities and organisations, as well as trade unions and local authorities.

New members include representatives from the Trades Union Congress and Design Council, bringing expertise of green skills and jobs creation to the council to support the government’s mission for clean energy growth on the path to net zero.

This broader coalition strengthens the Council’s ability to unlock the opportunities of decarbonisation, with major industry players such as Siemens, Nestle and HSBC returning to the Council alongside new members including the Local Government Association and Aviva Investors to seize the growth opportunities of decarbonising the economy.

The first meeting focused on agreeing the Council’s priorities for 2025 to 2026, which will include:

• a new focus on providing expert input to inform government strategies relating to net zero
• supporting the development and delivery of sector roadmaps, helping businesses to develop transition plans and investors to identify opportunities
• supporting small and medium-sized enterprises to decarbonise while maximising the benefits of the transition
• informing the government’s approach to public engagement and developing products to support public participation with net zero

A new Delivery Group will oversee the Council’s workstreams and help to drive progress.

The relaunch reflects a new mission-led approach, ensuring government actively engages with a broad range of industry leaders and stakeholders to drive progress towards net zero. This will support the Plan for Change to help deliver new jobs and economic opportunities while ensuring a fair transition.

Energy Secretary Ed Miliband said:

Businesses and leaders across our country recognise that clean power and accelerating towards net zero represents the economic opportunity of the 21st century.

It is one which will protect bills, create jobs, and tackle the climate crisis. This Council is about mission-driven leadership, bringing government, business and civil society together to turn ambition into action.

By working in partnership, we can drive the investment, innovation and industrial transformation needed to make the UK a clean energy superpower.

Climate Minister Kerry McCarthy said:

The relaunch of the Net Zero Council comes at a critical moment in the UK’s journey towards a clean energy future.

Bringing together leaders from across business, finance and civil society, the Council will play a crucial role in accelerating net zero ambitions, driving economic growth and creating thousands of jobs.

Shirine Khoury-Haq, CEO of The Co-operative Group, said:

Working urgently for a faster, fairer transition to a greener, cleaner economy is an absolute imperative. For the sake of our planet and for every community here in the UK and around the globe, it’s crucial we work together to unlock the significant opportunities the transition will bring for economic growth too.

I’m therefore delighted to be continuing in my role as Co-chair of the Net Zero Council. The science couldn’t be clearer that we must act collectively and decisively, and co-operation between businesses, civic society and government is what we need now more than ever.

While the Council itself is made up of senior leaders from key sectors, it is committed to an inclusive engagement strategy, ensuring a broad range of voices contribute to net zero delivery beyond formal members. This approach will ensure that businesses, communities and experts across the UK have opportunities to inform strategy, share best practices and help shape the transition.

Statements from Net Zero Council and Delivery Group members

Bev Cornaby, Director of the UK Corporate Leaders Group (CLG UK), said:

The relaunch of the Net Zero Council marks an important step in strengthening collaboration between government, business, civil society, and local government to accelerate the UK’s transition to net zero. Businesses are ready to lead, invest, and innovate, but they need the right policy framework and long-term clarity to unlock the full potential of a clean, competitive economy. The UK Corporate Leaders Group welcomes the opportunity to bring business leadership and ambition to the Council, supporting accelerated delivery and ensuring that government strategies are informed by real-world insights and that industry can play a central role in delivering a net zero future.

David Thomas, Chief Executive of Barratt Redrow, said:

I’m pleased to join the Net Zero Council at a critical time for the environment and as we scale up to build the new high quality, energy efficient homes the UK desperately needs.

Government has set out its clear ambition to shift to clean energy, meanwhile the homebuilding industry is making good progress towards delivering net zero homes and places – but we must unite behind one plan and work together to build a sustainable future.

Minnie Moll, Chief Executive of the Design Council, said:

I am honoured to join the Net Zero Council to contribute to this crucial national mission and represent the voice of design as a transformative tool for innovation. Design has the power to cut across sectors, fuelling innovative thinking, embracing circular approaches, and turning the challenges of climate change into opportunities for economic growth, improved quality of life, and a cleaner, more sustainable future for all. We are excited to bring our expertise to this ambitious mission and support the UK’s leadership in becoming a clean energy superpower.

John Scanlon, Chief Executive Officer for SUEZ recycling and recovery UK said:

I am delighted to bring SUEZ’s expertise in the circular economy to the Net Zero Council. Often unseen, the work of the waste and resources sector sits at the core of the delivery of the Industrial Strategy – at the same time as we are taking steps to decarbonise our own operations, the sector is helping other sectors to decarbonise by providing secondary resources for manufacturing, and energy and fuels for transport, homes and industry. A resource efficient economy is a thriving economy and I’m looking forward to working in partnership with industry peers to advance the government’s mission to become a Clean Energy Superpower.

Ian Simm, Founder and Chief Executive, Impax Asset Management said:

It’s very encouraging to see the Net Zero Council relaunched and I welcome the decision to expand its membership to include representatives from civil society and local government. The Council has a vital role to play at a moment when pivotal decisions are being made that will decide the future shape of the UK economy, not least on housing, infrastructure, and energy supply. I look forward to providing an investor’s view regarding how the Council can maximise its impact and effectiveness, both in helping to shape the shift to a net-zero economy and in supporting the government’s broader and much needed growth agenda.

Joanna Killian, Chief Executive of the Local Government Association said:

I’m delighted to be representing local government on the Net Zero Council.

Partnerships between central and local government, businesses, the financial industry and communities are essential to delivering green energy.

Local government can influence over 80% of an area’s emissions, and as a sector want to play our full role in achieving objectives to accelerate to net zero.

As local leaders, councils are uniquely able to lead local climate action while taking the incredible opportunity for local jobs and growth, and to improve the health and quality of life of our communities.

Jennifer Beckwith, Senior Manager, CBI, said:

Accelerating to net zero and achieving growth is society’s defining economic challenge – one that can only be achieved through industry and government partnership. Inaction on the transition is costlier than action and business wants to play its part in achieving sustainable growth.

Increasing decarbonisation beyond the power sector is the big opportunity to grow clean energy markets, scale infrastructure and advance green technologies. The government leading collaboration across business and finance sectors powerfully signals to investors a focus on delivery that can help get capital moving.

Ed Lockhart, Convenor, Broadway Initiative, said:

UK businesses need certainty, including on the transition to a clean energy future, to invest, grow and ultimately improve living standards.

By launching the Net Zero Council aligned to the clean energy mission, the government is providing a much-needed platform for the business community, financial institutions, civil society and government to work in partnership on a shared and inclusive long-term plan.

The Broadway Initiative looks forward to bringing business and environmental organisations together to make the most of this opportunity.

The press release issued by the Department for Energy Security and Net Zero on 29 January 2025.

New measures will unlock up to £30 billion investment in homegrown clean power as permissions for new offshore wind projects are streamlined.

Up to thirteen major offshore wind projects have today (Wednesday 29th January) been unlocked as the Government announced measures to accelerate the construction of offshore infrastructure.

Inheriting outdated and archaic infrastructure restrictions that slowed and jammed the building of offshore clean energy projects, Ministers are streamlining the consenting process to accelerate their construction. As set out in the Chancellor’s growth speech, this will hasten the delivery of vital infrastructure projects and unlock growth as part of the Government’s Plan for Change, while protecting nature and the environment.

Together, the unlocked projects will generate up to 16GWs of electricity – almost equivalent to the electricity generated by all of the country’s gas power plants last year – and create thousands of good jobs in the offshore wind sector, potentially spurring £20-30bn of investment in homegrown clean power.

These changes will allow the Government to designate new Marine Protected Areas or extend existing Marine Protected Areas to compensate for impacts to the seabed caused by offshore wind development. This will prevent delays that have previously resulted from insufficient environmental compensation being agreed, while protecting the marine environment and contributing to our commitment to protect 30% of our seas for nature by 2030.

Marine Minister Emma Hardy said:

Under the Government’s Plan for Change, we are committed to boosting growth and making Britain a clean energy superpower while defending our important marine habitats.

These changes show we can make significant progress in expanding homegrown British clean power in a way that protects vulnerable sea life.

Energy Minister Michael Shanks said:

Offshore wind will be the backbone of delivering clean power by 2030 as we enter a new era of clean electricity.

As part of the Government’s Plan for Change, today’s announcement will help unlock crucial offshore wind projects that will boost our energy security, protect billpayers from volatile fossil fuel markets, and help make the UK a clean energy superpower.

Any new designations of Marine Protected Areas will follow the existing process required under legislation, and will include consulting other affected industries and communities.

The new or extended Marine Protected Areas will protect a range of marine habitats, with the cost of their designation and management funded by offshore wind developers through the Marine Recovery Fund.

This follows the announcement that the Government’s forthcoming Planning and Infrastructure Bill will unlock much-needed infrastructure projects whilst supporting nature recovery, and targeted changes to the management of underwater noise will fast-track the UK to deliver a clean power system by 2030.

The press release issued by the Department for Energy Security and Net Zero on 29 January 2025.

Climate Minister forges stronger UK-EU cooperation to drive growth and energy security.

Cooperation on the North Seas was at the top of the agenda for Climate Minister Kerry McCarthy’s first visit to Brussels yesterday (Tuesday 28 January).

During the visit, Minister McCarthy delivered a keynote speech to European leaders at the European Energy Forum, where she said that by working together the UK and the EU can turn the North Seas into the green power plant of Europe and unlock thousands of well-paid, skilled British jobs.

This comes as independent consultants Grant Thornton publish a report commissioned by the Department for Energy Security and Net Zero, which finds that closer cooperation on the clean energy transition in the North Seas could lower bills, create up to 51,000 jobs, and add up to £36 billion to the UK economy.

Minister McCarthy also made the case to EU counterparts that the energy transition in the North Seas will ensure the oil and gas workforce are the ones who deliver the North Sea’s decarbonised future, through offshore wind, carbon capture and storage and hydrogen.

Climate Minister Kerry McCarthy said:

The EU is a crucial ally in bolstering our energy security and protecting families and businesses across Europe from volatile fossil fuel markets.

There is so much more we can do to speed up the clean energy transition, deliver our Plan for Change and make the North Seas the green power plant of Europe.

Through greater cooperation, we can build on our Mission to make Britain a clean energy superpower by 2030 helping keep bills down and kickstarting economic growth.

Tsvetelina Penkova President of the European Energy Forum and Member of the European Parliament said:

We simply have to build a robust cooperation between the EU and the UK on energy matters. It is crucial for addressing our shared challenges and ensuring energy security.

Key areas such as energy grids, connectivity and nuclear power require close collaboration to strengthen infrastructure, drive innovation, and support the transition to cleaner, more sustainable energy systems. By working together, we can create a more resilient and interconnected energy network that benefits both parties and contributes to a secure and sustainable energy future.

Minister McCarthy has met with a series of international partners including Belgian Energy Minister, Tinne van der Straeten and the European Union’s Principal Adviser on Energy Diplomacy, Tibor Stelaczky.

The visit comes as the UK continues work to reset its relationship with Europe, an ambition grounded in a new spirit of co-operation intended to strengthen ties, tackle barriers to trade and collaborate in the face of shared global challenges from climate change to illegal migration.

The press release issued by the Department for Energy Security and Net Zero on 16 January 2025.

Government announces £410 million investment to accelerate development of fusion energy and kickstart economic growth as part of its Plan for Change.

A future powered by limitless clean energy is a step closer to reality, as researchers developing cutting-edge fusion energy receive a record £410 million investment, helping to kickstart economic growth as part of government’s Plan for Change.

The funding will support the rapid development of the UK fusion energy sector over 2025 to 2026 with investment in the skills needed for scientists, engineers, welders and programme managers to enter the cutting-edge industry. Fusion already supports thousands of jobs in the UK, with thousands more to follow as the technology advances.

Industry leaders have been shortlisted by UK Industrial Fusion Solutions (UKIFS) to help construct a world-leading fusion power plant in Nottinghamshire, unlocking a new clean energy industry for the UK.

Five construction and engineering bids have progressed to the next round of the UKIFS competition to deliver the prototype fusion energy plant by 2040, driving progress towards the commercialisation of fusion in the UK to supply families and businesses with secure, clean and unlimited energy.

The prototype fusion energy plant is set at the site of a former coal power plant in Nottinghamshire, and will revitalise a UK industrial heartland, supporting new, skilled jobs in former coal communities.

Energy Secretary Ed Miliband said:

After scientists first theorised over 70 years ago that it could be possible, we are now within grasping distance of unlocking the power of the sun and providing families with secure, clean, unlimited energy.

Britain is at the forefront of this global race to deliver fusion, and today’s record level of funding will provide investment and economic growth through our Plan for Change, delivering on net zero and creating the clean energy of the future.

Climate Minister Kerry McCarthy said:

Last year Nottinghamshire marked the end of coal in our country after 142 years and today it starts the process to create the energy of the future.

We are taking a step forward in the global race to commercialise fusion, growing our economy, attracting investment and harnessing the power of the sun to create clean limitless secure energy.

This is what our clean energy transition is about – creating jobs in our local communities and building the skills that we need on the path to net zero.

Professor Sir Ian Chapman, UK Atomic Energy Authority (UKAEA) CEO, said:

I am delighted by the strong support from government to delivering fusion as a safe, sustainable energy of the future, and to anchor this exciting new industry in the UK.

Mayor for the East Midlands Claire Ward said:

This is fantastic news for Nottinghamshire and the East Midlands, a region that’s ready and willing to lead the way in clean, green energy.

I am delighted the government is committed to this investment in the East Midlands and look forward to working together to kickstart a green industrial revolutions, creating skilled jobs in our former coal mining communities.

Fusion uses the same process that powers the sun by combining 2 forms of hydrogen and heating them at extreme temperatures, releasing vast amounts of energy. The UK is at the forefront of the global race to commercialise fusion and unlock its potential.

Earlier this week the government also proposed plans for the UK’s first AI Growth Zone to be at the UKAEA’s fusion energy campus at Culham, Oxfordshire, which will utilise the advancements of AI to leverage computing power for fusion research and benefit the UK’s wider national AI infrastructure and the local area.

The multi-stage procurement process to deliver a fusion plant, known as STEP (Spherical Tokamak for Energy Production), is led by UK Industrial Fusion Solutions (UKIFS), a wholly owned subsidiary of the UK Atomic Energy Authority (UKAEA) Group.

The shortlisted companies will undertake detailed discussions with UKIFS, with one successful engineering and one successful construction partner set to be awarded contracts, worth an initial combined value of hundreds of millions of pounds, in late 2025 / early 2026.

Notes to editors

The £410 million investment of R&D funding will fund the UK fusion programme in 2025 to 2026.  This includes:

• STEP (a world leading prototype powerplant)
• Fusion Futures (a suite of measures aimed at building fusion capability, including skills development and LIBRTI, a new fusion fuel R&D facility)
• repurposing JET (the old fusion machine at Culham)
• supporting the UK Atomic Energy Authority’s existing research, innovation and facilities

This follows the announcement at Autumn Budget 2024 of “significant support in 2025-26 for UK fusion energy research”.

The following construction partners have been chosen by the UKIFS for the next stage of the procurement process, bidding to help build STEP.

• Inovus Infrastructure, consisting of Balfour Beatty Civil Engineering as the lead member and Vinci Construction, AtkinsRealis, Mott Macdonald and WSP as other members
• ILIOS, consisting of Kier Infrastructure and Overseas as the lead member and Bam Nuttal, Nuvia Limited, AECOM Ltd, Turner and Townsend Infrastructure Ltd and Amanda Levete Architects Ltd as other members
• Ferrovial Mace JV, consisting of Ferrovial Construction UK Ltd as the lead member and Mace Consult Ltd as the other member

The following engineering partners have been chosen for the next stage of the process.

• Celestial JV, consisting of Eni UK Limited as the lead member and AtkinsRealis, Jacobs Clean Energy (now Amentum), Westinghouse and Tokamak Energy as other members
• Phoenix (UK) Fusion Limited, consisting of Cavendish Nuclear Ltd as the lead member, KBR Ltd and Assystem Energy and Infrastructure Ltd as other members

The press release issued by the Department for Energy Security and Net Zero on 9 January 2025.

25 businesses adopting emissions-cutting projects supported with £51.9 million as part of Plan for Change to drive economic growth and rebuild Britain.

From beer brewing to baked beans, dairy farms and cement, 25 businesses across the country have received nearly £52 million to reduce their carbon emissions to boost the UK’s mission as part of the Plan for Change to become a clean energy superpower and accelerate to net zero, supporting jobs and economic growth.

With industry paying for around two thirds of the project costs to cut emissions, this funding will help businesses of all sizes expand and innovate, including supporting new jobs through construction and operations – helping to cut their energy bills and boost local growth across the country.

Thanks to support from the government, Nestlé’s coffee processing site in Staffordshire, Heinz’s baked bean factory in Wigan, and a specialist craft beer company in Cornwall are among those benefitting from grants, supporting millions of pounds of investment made by winning companies, with many being small and mid-size businesses, to deliver emissions-cutting technology such as heat pumps and carbon capture – with projects worth £154 million in total.

This delivers the government’s Plan for Change to make Britain a clean energy superpower, driving economic growth and rebuilding Britain. The upcoming Industrial Strategy will also give investors and industry confidence to plan for the next decade and beyond, with clean energy industries a key sector identified to reignite the UK’s industrial heartlands and grow the economy.

Heinz, which received over £2.5 million and invested nearly £5 million of their own funding in the project, will use the funding to switch its dependence on fossil fuels to heat water, needed to blanch beans and boil spaghetti hoops, by installing heat pumps that reuse waste heat from other processes in the factory – improving energy efficiency to cut emissions and bills for the business, allowing them to invest more in other areas.

Hanson Cement in North Wales will use its £5.6 million grant to support its multi-million-pound carbon capture and storage project – creating hundreds of jobs during construction and capturing 800,000 tonnes of CO2 emissions per year once operational – the equivalent of taking 320,000 cars off the road.

As well as support for individual businesses, setting them up for a more sustainable future as well as cutting energy costs and streamlining production, the government recently confirmed that contracts have been signed for the UK’s first carbon capture project in Teesside, marking the latest milestone in the government’s mission to reignite its industrial heartlands, tackle the climate crisis and turbocharge growth for decades to come.

Minister for Industry Sarah Jones said:

Helping businesses of all sizes to reduce their emissions is core to our Plan for Change to achieve net zero while growing the economy.

These companies represent some of the best of business innovation – using new technologies to improve how we do things, become more sustainable, and continue to make the British products we love – from baked beans to beer.

Other winners include Paul’s Malt and Verdant Brewing company, 2 businesses leading the way in decarbonising beer production, as well as Warrington-based Novelis who received nearly £14 million to expand its recycling capacity – part of a £63 million project that will reduce the company’s carbon emissions by over 350,000 tonnes.

The government also continues to invest in renewable energy projects, with a record number of projects secured earlier this year, to ensure homes and businesses benefit from clean, homegrown electricity – protecting them from the rollercoaster of fossil fuel markets.

Saji Jacob, Head of West Europe Supply Chain, Heinz, said:

The Industrial Energy Transformation Fund has enabled this energy efficiency project to become a reality at our largest food manufacturing plant in Europe.

It represents a critical step in our decarbonisation journey towards Net Zero. The UK business recognises the significance of the investment and is committed to further utilising this technology across our company.

Simon Willis, CEO Hanson UK, said:

I would like to thank government and all those that supported us in our bid to receive funding, which will enable us to help decarbonise the construction industry and meet our overall ambition to become a net zero business.

This global exemplar project will provide net zero construction materials for major projects across the country, from new offshore wind farms and nuclear power stations, to clean transport infrastructure, as early as 2028.

Notes to editors

The funding awarded is part of the Industrial Energy Transformation Fund (IETF), a government fund that supports the development and deployment of technologies that enable businesses with high energy use to transition to a low carbon future.

The press release issued by the Department for Energy Security and Net Zero on 17 December 2024.

Government relaunches the Net Zero Council, expanding its membership to include civil society and local government.

The government has relaunched the Net Zero Council, bringing together a broader range of voices to deepen the partnership between government, the private sector, civil society and local authorities, to support plans to accelerate to net zero across the economy.

The Council will act as the primary stakeholder forum supporting the delivery of the accelerating to net zero pillar of the mission to make Britain a clean energy superpower. Its insights will inform government strategies, help to address cross-economy challenges and maximise the many economic and societal opportunities the transition presents.

For the first time, the Council will have representation from civil society and local government, who both have essential roles to play in accelerating to net zero and can offer more diverse perspectives on challenges, opportunities and solutions.

Objectives

The Net Zero Council will have 3 broad functions, to:

• provide expert insight: advising government in the development of its net zero strategy
• drive action towards decarbonisation across the economy: convening senior leaders across the highest emitting sectors of the economy to tackle cross-cutting barriers to decarbonisation, supporting businesses to take action and enabling them to realise the benefits of the transition
• outreach and communications to the wider business community: members will engage across their networks, advocate for action and promote climate leadership

Members

The Council will be co-chaired by the Right Honourable Ed Miliband, Secretary of State for the Department of Energy Security and Net Zero, and Shirine Khoury-Haq, CEO of the Co-operative Group.

Full Council membership will be announced soon.

The press release issued by the Department of Energy Security and Net Zero on 13 December 2024.

Working people will benefit from a new era of clean electricity, as the government today unveils the most ambitious reforms to the country’s energy system in a generation, to make Britain energy secure, protect households from energy price spikes, reindustrialise the country with thousands of skilled jobs, and tackle the climate crisis.

In a major milestone to deliver on the Prime Minister’s Plan for Change which aims to drive economic growth and rebuild Britain with mission-driven government, Energy Secretary Ed Miliband will today (Friday 13 December) set out a detailed plan for achieving the target of clean power by 2030.

The plan will provide the foundation for the UK to build an energy system that can bring down bills for households and businesses for good. The independent National Energy System Operator (NESO) set out pathways to a clean power system in 2030, and confirmed it was deliverable, more secure, and could see a lower cost of electricity, and lower bills.

For too long, there has been no plan for building new energy infrastructure based on an assessment of what the country actually needs for the long term. As a result, billions of pounds of clean energy projects have been held up by a clogged-up planning system, and a dysfunctional power grid queue that means renewables projects cannot get online.

The government will now plan an energy system based on what the country needs. The plan sets out bold measures to get more homegrown clean power to people. These include: cleaning up a dysfunctional grid system by prioritising the most important projects and ending the ‘first-come-first served’ system; speeding up decisions on planning permission by empowering planners to prioritise critical energy infrastructure; and expanding the renewable auction process to stop delays and get more projects connected.

Delivering these reforms will unleash £40 billion a year of mainly private investment in homegrown clean power projects and infrastructure across the country, creating good jobs across the country including engineers, welders and mechanics.

Every family and business in the country has paid the price of Britain’s dependence on foreign fossil fuel markets, which was starkly exposed when Putin invaded Ukraine and British energy customers were among the hardest hit in Western Europe, with bills reaching record heights.

The government’s clean power mission is the solution to this crisis; by sprinting to clean, homegrown energy, including renewables and nuclear, the UK can take back control of its energy and protect both family and national finances from fossil fuel price spikes with cleaner, affordable power.

This action plan sets out how the government will build the generation and infrastructure needed to deliver that system. Over this Parliament the government will be working relentlessly to translate the much cheaper wholesale costs of clean power into lower bills for consumers.

It follows the signing on Tuesday this week of the Final Investment Decision for the UK’s first Carbon Capture project in Teesside – delivering thousands of new, skilled jobs in the North East of England. The East Coast Cluster – which will capture and store carbon emissions from industries in the region – is set to start construction in mid-2025. On Thursday, Orsted announced up to £100 million worth of contracts for its Hornsea 3 offshore wind farm, supporting jobs across three supply chain companies in the North of England.

Energy Secretary Ed Miliband said:

A new era of clean electricity for our country offers a positive vision of Britain’s future with energy security, lower bills, good jobs and climate action. This can only happen with big, bold change and that is why the government is embarking on the most ambitious reforms to our energy system in generations.

The era of clean electricity is about harnessing the power of Britain’s natural resources so we can protect working people from the ravages of global energy markets.

The clean power sprint is the national security, economic security, and social justice fight of our time – and this plan gives us the tools we need to win this fight for the British people.

Greg Jackson, CEO, Octopus:

We welcome the prospect of slashing red tape for grid connections, overturning the onshore wind ban in England and allowing more special offers to slash energy bills. Britain’s high energy prices stem from years of bad rules that don’t allow us to build renewable energy in the places it’s needed, or make use of cheap wind when it’s abundant, so these are positive steps.

Fintan Slye, Chief Executive, NESO:

We welcome the publication of the government’s Clean Power Action Plan. We are pleased that our independent advice on how Britain can achieve clean power by 2030 has formed such an integral part of the Plan set out by the government today.

We look forward to continuing to work with the government, the energy regulator and wider industry to overcome the delivery challenges that we have identified, and unlock the benefits of clean, secure power to consumers, the economy and society as a whole.

Jon Butterworth, CEO of National Gas, said:

National Gas welcomes the government’s Clean Power Action Plan, which firmly recognises the critical role of the gas transmission system – ensuring a secure transition for households and businesses across the country.

Gas will continue to play an essential role as the nation’s strategic power reserve when the wind doesn’t blow and the sun doesn’t shine, as demonstrated this week when we saw the need for gas hit a record high – with more gas supplied to power stations than at any point in the last 5 years.

We are proud to play our role in securing Britain’s energy and unlocking clean power, as the backbone keeping our country’s large gas power stations and heavy industry running.

Energy UK CEO Dhara Vyas said:

The energy industry welcomes the ambition behind the Clean Power Action Plan because it can accelerate the benefits that will be felt by people across the country through increased energy security, investment, growth and job creation.

Meeting the goal however is a formidable challenge and can only happen by tackling barriers and delays that will otherwise jeopardise this ambition and which have been constraining the country’s economic growth for some time.

So we support the need for fundamental changes that speed up the planning process, enable the swift construction of critical infrastructure, cutting the time for grid connections and enabling more homes and more businesses to benefit from the expansion of clean energy far more quickly. A clean power system must also include the necessary expansion of other established and emerging clean technologies, including storage and flexibility.

An undertaking of this scale obviously needs a comprehensive plan so we look forward to reading the detail.  We also again underline the need for the clean energy drive to be accompanied by a focus on improving things for customers – not only by increasing our own sources of power to protect them from volatile energy costs, but by putting in place long term, targeted support for households struggling to afford bills, improving the energy efficiency of homes and buildings, and supporting the switch to cleaner and ultimately cheaper ways of heating and travelling.

Darren Davidson, head of Siemens Energy and Siemens Gamesa in the UK, said:

We are proud to be part of this clean energy mission and to contribute to the growth of renewable technologies in the UK, with this launch at our offshore wind blade factory in Hull today.

Siemens Gamesa has installed over 10 GW of offshore wind in the UK, which is nearly 70% of the UK’s installed wind operational capacity. To date, we have manufactured over 2,300 offshore wind turbine blades at our factory in Hull.  We have over 1,300 employees in Hull, after recruiting more than 600 people in the last 12 months. Each worker is playing a vital role in the energy transition.

Shaun Spiers, executive director at Green Alliance, said:

Achieving clean power by 2030 will be genuinely transformational for the UK energy system, good for households and good for the economy. The government’s new plan sets them up to succeed in 2025, a make-or-break year. They rightly focus on getting unprecedented amounts of offshore wind built, and reforming a queuing system for connections to the power grid that had tied up projects until the middle of the 2030s. It will also be vital to engage seriously with communities to win maximum support for this national endeavour.

RenewableUK’s Director of Future Electricity Systems, Barnaby Wharton, said,

The Clean Power Action Plan will be considered a landmark moment for the clean energy sector. Not only do investors have a clear government target of establishing a lowest cost electricity system dominated by wind and solar, but they now have a roadmap to achieving it.

It’s great to see the plan set out targets for delivering the batteries, network infrastructure, and flexible technologies that will enable the roll out of renewable energy, as well as specific targets for wind and solar farms.

We would encourage the government to maintain this focus on renewables, collaborating with the sector on industrial strategy to ensure the UK grasps the potential jobs and industrial investment which could come alongside these new clean energy developments.

Ofgem CEO Jonathan Brearley said:

The energy crisis underlined exactly why we must end Britain’s reliance on volatile gas markets for electricity generation – only then will we have true energy security for every community, town and city across the UK. We hold cards that others don’t when decoupling from fossil fuels; the world’s geopolitics is uncertain but, thanks to our natural resources, we can protect ourselves by becoming a renewables superpower as part of our wider clean power mix.

Getting to clean power by 2030 is tough but achievable; it will require unprecedented pace by government, industry and regulators. We’re already helping to speed things up and unlock the investment needed by cutting red tape, fast-tracking grid expansion and getting more clean power projects connected. We’re taking a tough line and will hold the industry to account when it comes to the sector delivering on time and on budget.

Ofgem’s job is to protect consumers at every stage so that the transition is achieved at the fastest rate and lowest price possible. The clean power plan makes clear there are tough trade-offs, which is why it’s vital that the government brings the public, businesses and industry with it on every step of the journey. We will review this action plan in detail and set out our next steps early in 2025.

Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit (ECIU) said:

The UK has paid the price for over-reliance on expensive gas over the past few years and the crisis is not over yet. Accelerating the rollout of renewables will stabilise prices and clean technology like electric heat pumps will increasingly run off British wind and solar in contrast to gas boilers which will increasingly be run off foreign gas imports. Continuing to accelerate this rollout is the way we will avoid being on the hook for expensive gas in future.

The Energy Crisis Commission concluded that the UK is “dangerously unprepared” for another crisis but reaching clean power will be a significant step towards achieving energy independence. It will also be crucial that government focusses on fixing up our leaky homes and switching away from gas boilers.

Responding to the government’s Clean Power Action Plan Tania Kumar, Net Zero Director, CBI, said:

Delivering a clean power system is not only fundamental to achieving the UK’s net zero ambitions but crucial to ensuring the competitiveness of our industries and driving economic growth across the economy.

Today’s action plan clearly addresses a number of blockers businesses have long cited from grid connections to planning processes. 2030 is a challenging target for industry – but it is achievable with this type of relentless focus. Ultimately this is a milestone to net zero by 2050.

Achieving a decarbonised economy requires government creating the conditions for investment across decarbonisation technologies and working with business to ensure a plan for whole-economy transition.

John Pettigrew, CEO, National Grid, said:

This is an important next step in the clean energy transition, and a focus on agility and speed of reforms will be key. At National Grid, we remain committed to playing our part in delivering the government’s plan and working in partnership to ensure a reliable and affordable transition to cleaner energy sources.

Lisa Christie, UK Director of Public and Regulatory Affairs at Vattenfall, said:

It’s very encouraging for energy developers that the government is doubling down on its net zero commitments. Rebuilding the UK’s energy infrastructure will bring jobs and investment, boost our energy security, and help keep bills lower for consumers.

At Vattenfall we believe the UK’s 2030 clean power target is achievable, but now government and industry need to move at pace to get the job done.

Sue Ferns, Senior Deputy General Secretary of Prospect, said:

Prospect has long been an advocate of a secure, affordable and decarbonised energy system and we strongly welcome the government’s plan to accelerate progress towards this.

To be successful that same spirit of ambition and urgency must be applied to ensuring an adequate supply of skilled workers and a just transition for workers in carbon-intensive industries.

Once this plan is in place we quickly need to also commit to a programme which will sustain progress beyond 2030.

Gus Jaspert, Managing Director Marine, The Crown Estate:

For more than 20 years the UK has led the world in creating the right environment for the growth of offshore renewables, which have become the cornerstone of our energy transition. This Action Plan is an important step towards accelerating the move away from fossil fuels and the deployment of new offshore technologies such as floating offshore wind or carbon capture and storage.

To achieve these ambitious targets, it is more important than ever that we work together to maximise the potential of our marine space, which also means prioritising nature recovery and supporting the many other industries that rely on this vital resource.  We welcome this report’s recognition of the role our Marine Delivery Routemap can play in bringing parties together to enable a long-term view of how the seabed can play its part in the delivery of the government’s clean power and growth ambitions.

Lucy Yu, CEO and Founder at Centre for Net Zero, said:

While NESO’s advice to the government sets out 2 broad potential pathways to the 2030 target, the Clean Power Plan aims to deliver on a comprehensive basis, keeping all options in play to mitigate uncertainties around cost, speed, and technology risk, while allowing for new opportunities to be leveraged as they arise.

However, we must not forget the central role of consumers and communities in the energy transition. The British public’s support will be key, and the government must ensure clean power delivery has their interests at heart to keep us on track for 2030 and the critical decades beyond. Here, the promised Low Carbon Flexibility Roadmap and the decision on wholesale market reform can have a pivotal role in lowering bills and attracting private investment for clean energy projects. Many in the industry will feel that both are several years overdue, and strong decision-making and accountability in those areas will spell the difference between success and failure for this critical mission.

The press release issued by the Department for Energy Security and Net Zero on 18 November 2024.

New agreement for civil nuclear collaboration signed by UK and US at COP29 in Baku, helping strengthen energy security.

The United Kingdom and United States have joined forces at COP29 to speed up the deployment of cutting-edge nuclear technology to help decarbonise industry and boost energy security.

The UK Energy Secretary Ed Miliband and US Deputy Secretary of Energy David Turk have today (Monday 18 November) signed a new agreement while in Baku for climate talks that will help pool together billions of pounds worth of nuclear research and development – including the world’s leading academic institutions and nuclear innovators.

The UK will take a leading role in the forum, which aims to support information-sharing on advanced nuclear technologies and make them available for use in industry by 2030.

New technologies such as advanced modular reactors can help decarbonise heavy industry such as aviation fuel, hydrogen or advanced steel production, by providing low-carbon heat and power. They are also smaller and can be made in factories, making them quicker and cheaper to build.

This will support the commitment made last year at COP28 to triple nuclear energy capacity globally by 2050, with 31 countries signed up including the US and UK.

The UK is reversing a legacy of no nuclear being delivered and moving forward with its advanced nuclear reactor programme and Great British Nuclear’s small modular reactor competition, as well as continuing development of the Sizewell C project. New nuclear will help to secure thousands of good, skilled jobs and support energy independence beyond 2030.

Energy Secretary Ed Miliband said:

Nuclear will play a vital role in our clean energy future.

That is why we are working closely with our allies to unleash the potential of cutting-edge nuclear technology.

Advanced nuclear technology will help decarbonise industry by providing low-carbon heat and power, supporting new jobs and investment here in the UK.

As part of this new agreement, the Generation IV International Forum will no longer include Russia – ensuring future collaborations remain among mutually willing parties who respect nuclear safety norms.

The new agreement will come into force from 1 March 2025.