UK announces plan to spur domestic clean energy industry

The UK has outlined its plan to support its domestic clean energy industry and double investment levels by 2035 as part of its Modern Industrial Strategy announced today (June 23).

The country wants its clean energy future to be ‘built in Britain’ and will invest £700 million to achieve this goal. The new investment will be distributed through its publicly-owned power company Great British Energy to help build manufacturing facilities for key energy transition components, such as floating offshore platforms, electric cables, and hydrogen infrastructure.

This builds on Great British Energy’s initial £300 million investment in offshore wind supply chains, which was announced last week and helped catalyse a further £700 million from industry and The Crown Estate. 

Great British Energy Chief Executive Dan McGrail said: “Great British Energy will help the UK win the global race for clean energy jobs and growth by investing in homegrown supply chains and ensuring key infrastructure parts are made here in Britain. We are working closely with businesses across the clean energy sector to invest in areas of strategic need and will get funding out as fast as possible to get new projects off the ground.”

Doubling funding for domestic clean energy

This new investment brings total public and private funding in clean energy supply chains to £1.7 billion, supporting the UK’s target to decarbonise its energy system by 2030. Other public funding sources will include, the National Wealth Fund with a total £27.8 billion in capital, and the British Business Bank with £25.6 billion in total financial capacity, including £4 billion in additional scale-up and start up support.

Now, the UK government aims to at least double current investment levels in clean energy industries to over £30 billion per year by 2035, targeting not just onshore and offshore wind projects, but also nuclear fission, fusion energy, carbon capture, utilisation and storage (CCUS), hydrogen, heat pumps and electricity networks.

As part of the Clean Energy Industries Sector Plan announced today, the UK has also appointed Lucy Yu, CEO and founder of the Centre for Net Zero, as the government’s Clean Energy AI Champion to help drive the adoption of AI across the UK’s clean energy sector.

Clean Industry Bonus scheme

In addition, the government is considering expanding its Clean Industry Bonus scheme, which offers financial rewards to offshore wind developers that invest in local supply chains, to other industries such as hydrogen and onshore wind.

The plan was developed with industry, trade unions, and workers across all regions of the country, and aims to “unleash the tidal wave of jobs and investment that clean energy can bring” to the UK.

Energy Secretary Ed Miliband said: “This government is doubling down on Britain’s clean power strengths as we build this new era of clean energy abundance, helping deliver good jobs, energy security and lower household bills. The UK’s pitch is clear – build it in Britain. Power the world.”