Read below for details and insight into the newly elected Labour Party's proposed key policies that will affect the energy & natural resources sector.
Labour made a number of manifesto pledges around renewable energy investment and development in the UK, and working towards the UK’s net-zero target seems to be a key priority for their government.
As part of this strategy, the government will be looking to substantially increase private sector investment to maximise the outcomes it can achieve with public sector funds. If the new government is able to implement its planned overhaul of the planning regime and grid in the UK, there will be significant development and therefore investment opportunities within the UK energy market.
Labour’s mission is to make Britain a clean energy superpower by 2030, delivering a cheaper, zero-carbon electricity system. To do this Labour has committed to (amongst other things) quadruple offshore wind with an ambition of 55GW by 2030, pioneer floating offshore wind by fast tracking at least 5GW of capacity. This more than triples solar power to 50GW and double the government’s target on green hydrogen. A fund of up to £500m will be allocated from the 2025-26 contract for difference auction round.
Labour intends to invest £8 billion in new energy projects. Initial priorities are noted as investment and ownership in leading-edge energy technologies, co-investing in established energy technologies, and scaling up municipal and community energy. Labour in its first year in office intends to establish a National Wealth Fund to assess and make investments in ports, gigafactories, clean steel, industrial clusters and hydrogen. Labour will also establish GB Energy. This will be a publicly-owned clean generation company to invest in and deliver projects to provide additional investment alongside the private sector, with its initial remit to co-invest in cutting edge technologies and to accelerate the deployment of existing technologies.
Labour has a plan to ‘rewire Britain’ – to plan the energy system strategically to look ahead to required investment. Labour intends to remove the current obstacles to development and continue the work to stop ‘zombie’ projects from blocking the available grid connections.
Labour intend to equip a future systems operator, or FSO, to work in consultation with the secretary of state and Ofgem to take on the role of ‘system architect’, regarding electricity, gas, energy generation, and the changing nature of demand. This FSO would work with regional distribution network operators and devolved and local government to develop regional system plans and local area energy plans which link local, regional, and national infrastructure, take account of characteristics of a given area and ensure that local communities have a say in the energy decisions that affect them.
Labour is going to end the effective ban on onshore wind and intends to more than double the onshore wind capacity to 35GW by 2030.
Andrew Betteridge
Partner and Head of Business & Wealth Division
+44 (0)117 321 8063 +44 (0)7843 265362 a.betteridge@ashfords.co.uk View more
