NEW oil and gas licenses are to be issued by the UK Government and as many as 8 new nuclear reactors built as part of its energy strategy.
The delayed strategy was unveiled today, and includes the setting up of a new organisation to handle nuclear acceleration, which ministers hope will provide 25 per cent of the country’s electricity needs by 2050.
A North Sea taskforce is also to be established to give “bespoke support” to new oil and gas projects in the area, with a licensing round opening up this Autumn.
Business Secretary Kwasi Kwarteng said: “We have seen record-high gas prices around the world.
“We need to protect ourselves from price spikes in the future by accelerating our move towards cleaner, cheaper, home-grown energy.
“The simple truth is that the more cheap, clean power we generate within our borders, the less exposed we will be to eye-watering fossil fuel prices set by global markets we can’t control.
“Scaling up cheap renewables and new nuclear, while maximising North Sea production, is the best and only way to ensure our energy independence over the coming years.”
READ MORE: New North Sea oil and gas licensing to begin this autumn in UK 'energy independence' plan
Alongside nuclear and oil and gas, the government set out its ambition to double low-carbon hydrogen, increase offshore wind power and relax the rules around onshore wind turbines.
The Treasury is also to increase its funding of the £1bn Energy Company Obligation scheme by £100m. The scheme The scheme provides low-income households with grants to make their homes more energy efficient.
Announcing the energy strategy today, the Prime Minister said: “We’re setting out bold plans to scale up and accelerate affordable, clean and secure energy made in Britain, for Britain, from new nuclear to offshore wind, in the decade ahead.
“This will reduce our dependence on power sources exposed to volatile international prices we cannot control, so we can enjoy greater energy self-sufficiency with cheaper bills.”
He added that the strategy is about “tackling some of the mistakes of the past” and making sure that the UK will never again be subjected to “blackmail by people such as Vladimir Putin.
Critics say the plan does nothing to help those facing soaring energy costs right now, with bills going up rapidly from this month as the energy price cap rises.
Michael Matheson, the Scottish Government’s energy minister, was furious about the release of the delayed strategy, saying there had been no consultation with Holyrood on the plans.
Speaking on Good Morning Scotland, Mr Matheson said the strategy would “lean heavily on Scotland’s resources” but he had not been given a copy of the strategy in advance, and added that it was “completely unacceptable”.
He said: "The UK government haven't provided a copy of the strategy to the Scottish Government and they haven't engaged with us in the development on the strategy.
"I realised that the development of the strategy has been somewhat chaotic given the coverage it has had in the press over the course of the last couple of weeks.
"Despite having written to the UK government last month setting out a range of actions that we believe that they should take and the fact that it will lean very heavily on Scotland's energy resources it's critical that the Scottish Government were involved in the shaping of any strategy and consulted on its content.
"Sadly none of that' happened, which is completely unacceptable given that Scotland is an exporter of energy to other parts of the UK and will continue to become even more important as we move towards becoming a net zero society.”
Ed Miliband, Labour’s shadow energy secretary said the plans were in “disarray”.
He said: “Johnson has completely caved to his own backbenchers and now, ludicrously, his own energy strategy has failed on the sprint we needed on onshore wind and solar- the cheapest, cleanest forms of homegrown power.
“This relaunch will do nothing for the millions of families now facing an energy bills crisis. No reversal of the ban on onshore wind and not a penny more on energy efficiency. These decisions will force households to pay hundreds of pounds more for their energy bills and keep the UK dependent on imported gas for longer.
“After 12 years in government, families are paying the price of Conservative failure. This relaunch won’t cut bills, won’t deliver energy independence, and won’t tackle the climate crisis. Labour would deliver a green energy sprint. This government just cannot deliver.”
The Liberal Democrats said plans to build new nuclear reactors could add £96 a year to household energy bills and would be an “energy betrayal”.
The added cost would come about if each household pays an additional £12 a year for eight new reactors, the party said.
Liberal Democrat leader Sir Ed Davey said: “People are facing eye-watering hikes to energy bills and are looking to the Government for urgent help now.
“But instead of rapidly reducing energy costs by expanding onshore wind and insulating homes, the Government’s nuclear plans will add almost £100 to annual household bills.
“This is an energy betrayal that will add to the pain facing households on the brink. Instead of offering the help families need, the Conservatives seem happy for people’s record energy bills to get even higher.”
Meanwhile think tank IPPR said the plans focussed too much on expensive nuclear proposals and not enough on cheaper alternatives.
Luke Murphy, IPPR associate director for energy and climate, said:“This energy strategy appears to be a recipe for failure. The choices the government appears to have made will see consumers pay more, leave the UK less secure, and expose us all to a greater risk from climate change, than if different choices had been made.”
He added that the plan “falls short on every test” to make energy more “affordable, secure and clean”, explaining: “Onshore wind to boost clean energy supply and energy efficiency measures to reduce energy demand should have been at the heart of this strategy, but energy efficiency hasn’t been mentioned and the proposals for onshore wind appear pitiful.
“The government has instead placed a bet big on nuclear, which has a role, but remains too expensive and will take years to make a difference.
"The decision to ramp up exploration of oil and gas and reassess fracking beggars belief.
"Phasing out fossil fuels is not only essential for tackling the climate crisis and protecting future generations, but it is also in the interests of our energy and economic security.”
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