The UK will outline its strategy for accelerating the deployment of renewable energy and capturing carbon. This is part of a plan that aims to increase energy investment in Britain, which lacks the financial resources to pursue similar ventures in the USA.
The response to the unlimited green subsidies in US President Joe Biden’s Inflation Reduction Act are described as “a response “. However, the draft document that was seen shows little in the way new spending. The Autumn budget could provide any meaningful funding.
The plan will be revealed Thursday and include key measures such as the expansion of a program for energy efficiency at home, steps to accelerate the planning process for renewable power development and the announcement of the first projects that will go forward under the country’s carbon storage and storage support mechanism.
Another consultation is being held by the government to see how it can partner with communities to provide onshore wind infrastructure that will give them lower power costs. This effectively delays a previous consultation that was launched last year after pressure from the government to lift a ban against onshore wind. Grant Shapps, Energy Secretary, stated that “we want a rational solution that works in communities.”
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Both the fossil-fuel and renewable power industries may be disappointed by the details. Permit reform is a crucial demand for green energy developers. However, there is little in the way of new funding and no indication that the government will change the terms or budget for the upcoming auction round to help support new wind farms. After the recent rise in costs, developers have expressed concern that the price might be too low for investors to justify making investments.
Similar to the above, no information is available on whether the government will relax the windfall tax that North Sea oil companies pay. This has caused some of the largest producers to reconsider future investments in the UK.
The appointment of interim executives to a body called Great British Nuclear, which is intended to support future investments in nuclear power plants, are some other measures that will be announced. It’s not clear how this will resolve the biggest problem facing nuclear power in the UK: finding billions of dollars to build new plants.
The UK plans to fund hydrogen production projects as well as the PS30 million Heat Pump Investment Accelerator. This accelerator is intended to increase private investment and multiply it with hydrogen production. The Boiler Upgrade Program, which provides grants to help subsidize heat pump installations at home, will be extended by the UK until 2028.