Business Secretary Kwasi Kwarteng described the government’s energy strategy as a medium-term response, which will reap dividends for households over the next five years.
Speaking to Sky News, Kwarteng said it is “right” to say “the strategy is more of a medium term three, four, five year answer”.
The energy strategy security – which will be published in full later today – is focused on bolstering domestic energy production to ensure the UK’s resilience to future market shocks, and cut down its reliance on overseas supplies.
This will require ramping up renewables, nuclear power and further North Sea oil and gas exploration.
- Boosting nuclear power from 6.9 gigawatts (GW) to 24GW by 2050
- Raising offshore wind power from 11GW to 50GW by 2030
- Doubling hydrogen capacity up to 10GW from 2030
- Increasing solar power capacity from 14GW potentially fivefold to 70GW by 2035
There are also pledges to boost heat pump production through a £30m funding scheme.
The plans would eventually benefit households by providing greener energy at lower prices – domestically sourced and less influenced by international volatility.
Kwarteng said: “It’s really important that we get an energy strategy, an energy policy, that means we can have more security and independence in the year ahead.”
However, the plans so far do not suggest any short-term measures to reduce energy bills such as insulation and energy efficiency measures.
Energy bills have soared to nearly £2,000 per year amid mass market carnage – which has seen dozens of suppliers collapse from the lethal combination of spiralling wholesale costs and the consumer price cap
Analysts anticipate further hikes this winter – with the latest forecast from Cornwall Insight suggesting a 33 per cent spike to £2,600 per year.
Emma Pinchbeck, chief executive at industry body EnergyUK told City A.M.: “Realistically, any new energy projects will not be built fast enough to make a difference over the next few months, which is why the government needs to look again at the existing support package for customers, given projections of further bill rises later this year.”