Mike Foster, CEO of Energy and Utilities Alliance (EUA), has commented on this week’s King’s Speech.
He said: “There were no major surprises contained in the King’s Speech, which is a good thing and in keeping with the stability promised by the new government. The Great British Energy Bill is therefore no surprise, having been central to the mandate the government received from the British people.
“We welcome the serious intent of the government’s mission to decarbonise the power sector, as part of the journey to net zero. Without zero carbon electricity we will not hit our 2050 target. Equally, we also need to decarbonise our gas networks, to make sure that industry, commerce and yes, households can also decarbonise.
“The Great British Energy Bill, supporting investment in the sector, will help fast-track technologies such as carbon capture and storage, helping energy intensive industries stay in the UK. The ramping up of investment in renewables also promises to help deliver hydrogen to those key industrial clusters that rely on gas but need to be carbon free. Without them having access to hydrogen, we miss our net zero target, or they move abroad. Offshoring our industry is not the outcome the government will want to see. Decarbonisation should not mean deindustrialisation.
“Generating our own energy, in our own backyard, will help us be more energy secure and hedge us against external energy cost shocks, the type we have experienced recently. With massive increases in wind and solar power generation coming our way, as a result of the Great British Energy Bill, paying generators not to provide power – so-called ‘constraint costs’ will not be acceptable. Using surplus renewable power to produce cheap green hydrogen will be the win-win consumers need – lower bills, lower carbon and lower dependency on imports.
“This Bill promises to be the first step in changing our energy landscape and reducing our carbon footprint. Tackling home insulation and energy efficiency also needs to be done at scale. The heating industry looks forward to working with the new ministerial team to deliver for the UK.”