Energy Industry responds to today’s King’s Speech
Posted by: electime 17th July 2024
Tilmann Hensel-Roth, Vice President in Charles River Associates (CRA) energy practice, said:
“The role of government in supporting the energy transition is multifaceted and one where, until the details are clear, can only be cautiously speculated on. The £8.3 billion allocated to GB Energy may seem modest in the context of the UK’s energy transition, but its potential impact is substantial. By focusing on new technologies, GB Energy can lower the cost of capital for investors, accelerating the deployment of innovative energy solutions on a larger scale. With favourable conditions, GB Energy could expand to larger-scale investments.
The concept is not without precedent; the Green Investment Bank, which was broadly successful after its 2012 launch and now operates as the Green Investment Group within Macquarie Group, serves as a model. Success for GB Energy will depend on strong investment strategies, a deep understanding of the energy system, and the ability to build robust businesses. Given the UK’s leadership in relevant fields, this initiative could substantially contribute to the nation’s net zero commitments.
However, GB Energy alone cannot achieve net zero targets. The new administration’s broader energy policies and legislative framework will be crucial in realising ambitions.”
George Morrison, CEO at Aquaterra Energy, commented:
“The £7bn investment in GB Energy is a pivotal step toward reinforcing the UK’s leadership in the energy transition. With Labour’s manifesto commitments to quadrupling offshore wind capacity by 2030, earmarking £1bn for carbon capture and storage and £500m for green hydrogen, we can advance crucial sectors. However, it’s imperative to consider project timelines and advances in innovation and technology required to meet ambitious 2030 targets, particularly in green hydrogen where there may be a chicken-and-egg scenario in terms of production capacity vs demand. Sustained investment and an innovative supply chain will be essential in delivering these projects at the required pace, ensuring a sustainable energy future and unlocking the economic benefits of the energy transition in the UK.”
Paul Smith, MD at NIBE, said: “Following the King’s Speech, which sets out clear targets for housebuilding, green energy and the devolution of power to local communities, the future as I see it, looks bright for the heat pump sector. A refocussing on net zero and stimulated construction market will lead to much needed affordable, energy efficient housing, providing a boost for the installer base.
“Keir Starmer has described ‘taking the breaks of Britain’, through relaxed planning rules, improved infrastructure and a general commitment to promote growth. The next 12 months are crucial, we watch with interest at NIBE and are ready to support installers, consumers, housebuilders and communities in taking advantage of new policies that create a clear and uninterrupted path to a low carbon and prosperous UK.”
Yselkla Farmer, CEO of BEAMA, the UK trade association for energy infrastructure and systems, said:
“The establishment of GB Energy is a landmark decision, the first step towards reclaiming the UK’s position as a global Net Zero pioneer.
The new government is hitting the ground running with bold decisions to accelerate electrification, boost energy security and reduce household energy bills. The electrical products supply chain, represented by BEAMA, is the UK’s hidden Net Zero champion poised to deliver and supercharge UK economic growth. But we cannot scale up overnight. Whilst commitments have been made today, immediate action is required to mobilise public and private sector funding for the UK’s low carbon infrastructure and supply chain.
We look forward to hearing further details on the Government’s plans for the necessary acceleration in development of electricity networks, smart metering and low carbon electric heat and transportation. The longer we delay, the more expensive it will become, leaving consumers with higher energy bills and greater vulnerability to volatile wholesale energy shocks.
As a £14 billion industry with massive growth and export potential, BEAMA is looking forward to championing the electrical products supply chain as an active participant in the Government’s Industrial Strategy Council. By working together with our members and government, we can unlock the full potential of this green revolution, driving innovation, creating jobs, and securing a sustainable future for generations to come.
After today’s King’s Speech, the UK is back in the global race to Net Zero.”
Tim Mitchell, Sales Director at Klima-Therm, said: “I am pleased to see a renewed focus on net zero, with policies that will stimulate growth for the construction sector and low carbon arm of building services in particular. Removing the barriers that have held back the UK’s renewable energy ambitions, such as relaxing planning around wind farms, will hopefully provide confidence in the government’s commitment to a fossil-free future.
“’Green’ is good for the economy, good for business and good for communities and individuals, and it’s about time we firmly stuck to this side of the coin. I hope that Labour learns from the mistakes of our previous government and avoids backtracking on its position.”
Griff Thomas, MD at GTEC & Heatly, part of the United Living Group, said: “I am pleased to see a renewed commitment to some of the green policies that were abandoned under the previous government in the King’s Speech, including the 2030 target for phasing out fossil fuel vehicles. Investment in skills and tech is crucial for every sector and is something that I am involved with in the development of Heatly, an app that will accelerate heat pump deployment and deliver critical support to installers. Moving forward, I would like to see a commitment to up-skilling the workforce to prevent further delays to the heat pump roll out.
“Keir Starmer has said this government will be “builders, not blockers” and Labour’s ambitious commitment to high-quality housebuilding will create opportunities for heating, renewable and retrofit installers. What we need now is consistency – it’s the only approach that will lead to meaningful progress and build confidence in renewable technologies amongst installers and end users.”
EngineeringUK Head of Policy and Public Affairs, Beatrice Barleon comments:
“We welcome the creation of Skills England and the strategic approach to identifying and meeting skills needs. We look forward to working with Skills England and other stakeholders on developing a comprehensive workforce and training plan for the engineering and technology, to ensure that the sector, and indeed the entire economy, can thrive with a highly trained and adaptable workforce.
The ambition to ‘raise educational standards and break down barriers to opportunity’ is something we at EngineeringUK have been calling for. As the King outlined, the urgency of the climate challenge creates new job opportunities, many of them in engineering and technology. For young people to seize these opportunities we need an education system equipped to deliver for all. A focus on recruiting and retaining more STEM teachers alongside a modern curriculum will be key.
It is good news that the government has committed to ensuring that the apprenticeship levy supports businesses to develop and upskill future and existing staff. A future growth & skills levy must focus on enabling more young people to gain access to entry-level apprenticeships. A greater pre-apprenticeship offer will help but the funding system must also lead to more opportunities for young people to access Level 2 and 3 apprenticeships. We look forward to working with the government to achieve this and deliver on their ‘youth guarantee’.”
Kate Jennings, chief executive officer, the Association for Consultancy and Engineering and the Environmental Industries Commission
“By prioritising an industrial strategy, infrastructure investment and planning at speed, in today’s King’s Speech, the new government is taking on board key asks from our members. Investment in infrastructure and education for building the capacity of our sector are key to unlocking the UK’s potential for growth. A renewed commitment to transparency and accountability will undeniably help in strengthening the stability of the entire project pipeline.
Acknowledgement of the global importance of climate change is also welcomed. We will continue to pursue our engagement with government to address climate goals and placing nature and biodiversity at the heart of new and retrofit development.
Devolving transportation so that the needs of local communities are considered first and foremost also aligns with our asks for better integration of transport to support local communities as well as national needs.
We see these commitments as a positive endorsement of our member’s views and a good signal for our sector. We look forward to working in partnership with government to turn their goals for growth into reality.”
