03 Oct UK’s Energy Security Strategy: Policy Overview

In an era marked by dynamic shifts in global energy dynamics and an ever-growing consciousness for environmental sustainability, the need of establishing a sustainable and dependable energy supply has risen to the forefront of national priorities. This imperative is particularly pronounced in the case of the United Kingdom, a nation currently grappling with multifaceted crises that have been further compounded by the turmoil in Ukraine. The crisis in Ukraine, being a pivotal energy corridor for Europe, presents a substantial threat to the UK’s energy security, amplifying the urgency to ensure stability on multiple fronts. Furthermore, the UK’s leadership role in climate change mitigation compels it to assume the mantle of transitioning towards environmentally friendly energy sources.

The complexity of the challenges faced by Europe necessitates a meticulously formulated energy security strategy that adeptly addresses these intricacies. In response, the UK Government released a comprehensive policy paper in 2022, titled the “British Energy Security Strategy,” which presents an array of strategies poised to navigate the energy crises that loom while remaining unwavering in its commitment to advancing clean energy solutions. This article will provide you with an overview of the plan’s key components.

Policy Overview

The UK’s energy response strategy is outlined in the British Energy Security Strategy, a comprehensive approach to ensuring a stable energy supply, minimising external vulnerabilities, and progressing towards sustainable energy independence. The strategy aims to bolster Europe’s energy stability, autonomy, and resilience, with a target of increasing electricity generation capacity by the late 2030s. The overarching objective is to transition to abundant and eco-friendly energy sources, in line with the Net Zero Strategy, which emphasises domestic energy production and reduced demand. This strategy is reinforced by the Net Zero Growth Plan, focusing on long-term decarbonization, enhancing competitiveness, fostering industrial growth, and ensuring regional equity

The plan aims to increase the UK’s energy production, a promise to stop buying oil and coal from Russia by the end of 2022, and to quickly cut downtown reliance on Russian gas. To achieve this, the plan has the following objectives; maximising North Sea reserves, starting a scientific review on shale gas extraction, setting up four new carbon capture, use, and storage clusters by 2030, proposing to cut gas consumption by more than 40% by 2030, setting higher goals for low-carbon power generation than the Energy White Paper’s previous benchmarks, and making it easier to get permission for offshore wind projects. The Energy Security Strategy (“the Strategy”) comprises policies on:

Energy Efficiency: An Emphasis on Behavior Change and Incentives

At the heart of the strategy lies the drive towards energy efficiency. The approach focuses on incentivizing changes in consumer behaviour rather than mandating specific alterations. Given the pragmatic stance of the conservative government, it’s unlikely that homeowners will be compelled to undertake significant home improvements such as cavity wall insulation or boiler replacements. Instead, the strategy relies on financial incentives, including VAT zero-rating for energy-saving material installations, a £450 million Boiler Upgrade Scheme, and a network cost review to balance energy bills and spur electrification.

Oil and Gas: Balancing Transition and Energy Security

While the Net Zero Strategy prioritises emissions reduction and hydrogen adoption, geopolitical events have pushed the UK government to rejuvenate the North Sea oil and gas sector. The strategy acknowledges gas as a transitional fuel, vital for ensuring energy system stability as renewables mature and reducing dependence on foreign supply. The UK government seeks a balance between its net-zero commitment and supporting the North Sea industry, recognizing the interdependence of the two. To enhance energy security, the UK prioritises domestic oil and gas resources over foreign supplies, although the associated carbon emissions are acknowledged.

Renewables: Amplifying Offshore Wind and Sun

The UK, being an early success story in offshore wind energy, aims to expand its offshore wind capacity to 50 GW by 2030, including 5 GW of floating wind. Onshore wind and solar energy remain on the agenda, with a continued commitment to including them in future Contract for Difference (CfD) Allocation Rounds. The government also envisions a significant boost in solar energy deployment by 2035, acknowledging the plummeting costs of solar technology. The strategy also earmarks a determination to explore renewable opportunities, including tidal and geothermal energy.

Nuclear Power: Reviving a Pioneering British Technology

Nuclear energy assumes a vital role in the UK’s energy mix. The strategy aims to establish up to 24 GW of nuclear capacity by 2050, contributing to a quarter of projected demand. While the industry will bear the brunt of the implementation, the government pledges funding and streamlined processes for new nuclear projects. The strategy’s stance on onshore reserves remains open-ended, hinting at the potential utilisation of shale gas and fracking.

Hydrogen Power: An Expanding Role in the Energy Mix

Hydrogen emerges as a focal point, with the strategy doubling the target for low-carbon hydrogen production capacity to 10 GW by 2030. The government strives for competitive allocation and certification of hydrogen, complemented by a concerted exploration of hydrogen’s potential for export and import substitution.

Networks, Storage, and Flexibility: Maximising Efficiency

Efficient network utilisation takes centre stage in the strategy. This policy aims to use energy networks more efficiently by establishing a Future System Operator and appointing an Electricity Networks Commissioner. A blueprint for the energy system is captured in a document titled Future System Operator- Second Policy Consultation and Update from the Department for Energy Security & Net Zero. 

This policy aspect focuses on optimising current infrastructure and resources. It aims to

1. Release a strategic framework in collaboration with Ofgem to guide network contributions to achieving net zero
2. Modify National Policy Statements to acknowledge the HND and CSNP plans, enhancing clarity for planning officials, developers, and stakeholders to expedite implementation
3. Urge Ofgem to accelerate network approval procedures in preparation for substantial new generation sources and demand.

International Delivery: Reducing Reliance on Russian Fossil Fuels

The international delivery aspect of the strategy underscores a strategic goal: decreasing the world’s dependence on Russian fossil fuels. This goal reflects the broader objective of enhancing global energy security and diversifying energy sources. To achieve this, the UK is pursuing diplomatic and trade relationships with key partners, namely the United States and Qatar, with the aim of establishing crucial entry points for non-Russian gas supplies into the European Union (EU). Additionally, the strategy aims to optimise electricity trading over interconnectors with European nations, fostering more efficient energy exchange and further reducing reliance on specific fuel sources.