19 Jul The Kings Speech and other Energy market changes
On 17th July 2024 the Kings Speech unveiled a range of new bills for parliament including some key ones relating to the Energy Sector.
As ever though, what has been briefed so far is high level policy and there remain important details yet to follow in the coming weeks and months. Some of the key takeaways from the Kings Speech included:
Two new renewable energy task forces, design to support the wind and solar sectors in the UK. To develop a pipeline of projects for wind and rebuild the huge potential for what is often called the cheapest form of power in the world. The solar taskforce aims to produce a form of roadmap and prioritize rooftop solar.
Both of the above areas of focus could bring much needed further support for businesses, especially in the area of on shore wind which remains largely untapped and could provide transformational cheap green power to a huge number of businesses in England.
One of the biggest headlines is the creation of GB Energy, which was included in the Labour Party manifesto, and which has now been formally tabled before parliament. The role of GB Energy is designed to be transformational, and its entire scope of work is not fully outlined yet, but there was a key reference to it developing and owning renewables, supporting new renewable technology, partnering with private sector, local authorities and communities. This may indicate at most there is a major role for government ownership of energy and at the very least a major catalyst in terms of investment and focus in driving the energy transition faster which can only be good for our economy and society.
Less well known, but soon to be heard about everywhere, is the role of community energy, which is likely to be a significant benefit from the creation of GB Energy. It is expected that the community energy sector will receive one of the biggest investments in its history through a Local Power Plan, meaning thousands of new energy projects will have ownership by the communities near them. The Local Power Plan was included in Labour’s manifesto and indicated at the time there was potentially £400m for community energy sector in the form of development funding and loans being created alongside £600m for local authorities.
Alongside specific energy policy, planning policy has been targeted as a key area for change, with a new Planning and Infrastructure Bill. It is expected to deliver reforms of policies which affect national infrastructure projects including national grid infrastructure, to speed up its expansion to meet the needs of the green energy transition.
DEFRA are also producing a Land Use framework, which will be linked to the Strategic Spatial Energy Plan. The Strategic Spatial Energy Plan has a role in setting out the project timelines and priorities for speeding up the roll out of the much-needed investments in the grid and major infrastructure. It does mean more power lines in some communities, but it recognizes the urgent need for this and the need to ensure communities benefit from this not only from the resulting cheaper energy bills but also in terms of financial benefits for those who live nearest those changes happening.
It is hoped that the Land Use Framework will help land managers, farmers and other stakeholders by providing guidance on national requirements and also providing a more joined up approach to planning infrastructure projects.
One final comment, outside the Kings Speech there has been very welcome news that the government has removed the footnotes’ 57 and 58 of the National Planning Policy Framework (NPPF) which had imposed a de facto ban for on shore wind in England. This is incredibly welcome news and means there is a major new focus for on shore wind which has the potential to not only bring down peoples bills but shield our country from volatile gas driven markets.
Overall, there are still gaps in the detail behind these policies, but it is fair to say the critical planning, grid and regulatory reforms are happening and could have far reaching positive benefits for communities and businesses.
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