Commenting on the Great British Energy Bill announced today as part of the King’s Speech, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG in the UK said:
“With a target of net zero power by 2030, the Labour Government has wasted no time in getting things moving in their first few days in power. The announcement of the Great British Energy Bill in today’s King’s Speech is a further sign of their intent to deliver on this pledge.
“The Government has already set aside £3.3 billion allocated to Great British Energy for investments in community energy, leaving £5 billion for other green energy investments. To have the greatest impact it will need to focus its limited resources where it can catalyse private sector investment in newer technologies.
“Hydrogen and carbon capture and storage will be essential for reaching net zero, as the Electricity System Operator (ESO) highlighted this weekopens in a new tab. This might not deliver the speedy returns that investing in more mature technologies like offshore wind would, but it will send a clear signal to investors that the UK is open to developing the markets for these technologies, reducing risks for developers.
“With the National Wealth Fund already up and running, investors will need a clear picture of which institution they should be approaching for which type of project. But both initiatives are a sign of intention and have the potential to provide some impetus in green investments despite the constrained fiscal backdrop.”
