Today’s Industrial Strategy has outlined some steps to cutting electricity costs, but these simply do not go far enough and apply only for a small number of select businesses says ADE.
The Industrial Strategy identifies eight high-growth industries, including clean energy industries, setting out key priorities over the next decade. Key Industrial Strategy announcements impacting the sector included:
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From 2027, a new British Industrial Competitiveness Scheme will see eligible businesses exempt from paying the costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market, although details on how this will be funded is vague.
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The Strategic Sites Accelerator will identify and prepare strategically significant industrial sites, including in clean energy industries, to address specific barriers such as grid connections and planning.
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Launch of a Connections Accelerator Service with the aim of boosting support for demand projects.
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Driving demand for larger commercial and industrial heat pumps through heat networks.
Caroline Bragg, CEO at ADE, said "This strategy has set out some positive steps towards cutting electricity costs. Despite these steps, details on funding remain vague, a concern heightened by the recent Spending Review. Only a small number of select businesses will qualify, sidelining thousands of businesses who desperately need support in the face of rising energy bills – particularly those businesses outside the Government’s industrial clusters. Ministers need to wake up, we cannot build a secure, affordable, low-carbon energy system while actively discouraging all the businesses that use it from investing in their future.”
The UK is at risk of falling short of its 2030 clean power targets unless businesses are given the tools and support to decarbonise in a commercially viable way. ADE’s Help Industry to Help Net Zero Report includes concrete actions to key stakeholders and government on how to deliver this.
The Industrial Strategy follows last week’s Spending Review, which saw a 16% energy spending boost. ADE: Demand calls for urgent Government leadership: a clear, funded plan to reduce industrial energy costs and support capital investment in decarbonisation technologies across all sectors, ensuring a just transition that protects jobs.