Major energy users have welcomed a series of proposed changes to the energy policy landscape, with the government placing renewed focus on security of supply and keeping consumers’ bills down.
On 18 November energy and climate change secretary Amber Rudd delivered her first major policy speech, setting out the government’s vision for the energy sector over the next five years.
While confirming that energy security would serve as the government’s key priority, Rudd assured that the UK’s commitment to long-term environmental targets would be maintained.
The UK would, she said, ‘set an example to the rest of the world’ by focusing on where it would most swiftly and cheaply achieve emissions cuts. This would come from replacing coal-fired plants – which provide around 30% of the power mix – with gas. The government will consequently seek to ensure that all coal-fired power stations are closed by 2025.
However, Rudd also reaffirmed her commitment to ‘cost effective’ renewables deployment. Most significantly, she said the government would aim to hold three further auctions for subsidies under the new contracts for difference (CfD) regime.
These auctions will be targeted at less developed technologies such as offshore wind. The government believes that mature technologies such as onshore wind should ‘stand on their own two feet’ without additional subsidies.
