Tag: Energy Security

More renewables approved with 10,000 jobs supported

Ministers have announced the largest ever procurement of solar projects in the UK alongside new onshore wind farm developments and three new tidal energy projects.

Taken together with previous announcements on offshore wind results, the Government has estimated that the announcements since 2024 will deliver enough power for the equivalent of 16 million homes.

The “strike price” for the new onshore wind has been agreed at £72.24 per mega watt hour generated (/MWh) and new solar at £65.23/MWh. The new plans will support around 10,000 jobs.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Households are still paying the price for years of exposure to volatile gas markets. Cheaper, homegrown renewables don’t just help the planet, they can help cut bills by pushing expensive electricity from gas-fired power stations off the system.

“A comparison with fossil fuel generated electricity puts into perspective the deal households get from renewables. Any new gas-fired power stations generate energy at close to £150 per megawatt hour, whereas the last offshore wind auction came in at around £90/MWh and today’s auction strike prices are even lower.

“But affordability must be guaranteed, not assumed. As more private investment flows into clean power, consumers need transparency on how these contracts affect bills, clear limits on profits and further electricity pricing reform so the benefits are passed on to households.”

The announcement comes after Ministers also confirmed £1bn in funding for new community energy projects which the End Fuel Poverty Coalition described as having “real potential to help bring down bills while keeping the benefits of clean power rooted in local places.”

Investment aims to boost community energy schemes

The Government has announced a £1 billion “local power plan” to expand community-owned clean energy projects across the UK, from solar panels on public buildings to small-scale hydro schemes.

Ministers have called the plan “the biggest ever investment in community energy.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“This boost for community energy has real potential to help bring down bills while keeping the benefits of clean power rooted in local places.

“For too long, households have been trapped paying the price of a broken energy system where profits flow out to major companies, while communities living in cold, damp homes see little return. Community-owned renewables can start to change that, cutting costs, strengthening energy security and generating income for vital local services.

“But clean energy should not just be about new generation, it must also be about guaranteeing warmer homes, lower energy bills and building a better energy system.”

Years of new North Sea licenses produced 36 days of gas

New analysis by energy consultancy Voar shows that hundreds of oil and gas licences handed out by the previous government have delivered almost nothing in return.

Research by energy consultancy Voar found that seven licensing rounds between 2010 and 2024 led to just 20 new and re-licensed fields, which together have so far produced the equivalent of just 36 days of gas.

Even over their full lifetimes, those fields are expected to deliver less than six months of gas in total. Polling now shows public support for this shift, with a majority of Scots surveyed backing a move away from oil and gas and strong support for prioritising clean energy as the route to long-term jobs and investment.

Meanwhile, the chair of the Scottish Affairs Committee of MPs has claimed the Government should weaken the windfall tax on oil and gas companies, despite ministers reaffirming that the Energy Profits Levy will remain in place until March 2030 at the latest and be replaced by a reformed mechanism thereafter

A spokesperson for the End Fuel Poverty Coalition, commented:

“There is a real risk to households in clinging to a broken system that delivers high bills and volatile prices as the North Sea runs out of gas.

“Hundreds of licences handed out over the past decade have delivered barely a month’s worth of gas, while oil and gas jobs have more than halved. This industry is in geological decline, whether politicians like it or not

“Despite this, just 27 energy firms have made around £40 billion in UK profits in the last two years, even with the Energy Profits Levy in place. That is why the levy must continue, and why it must be followed by a stronger, reformed mechanism after 2030 that ensures energy companies contribute fairly while households are still struggling.

“But taxation alone is not enough. The UK needs a properly funded plan to manage the decline of the North Sea in a way that protects workers and communities, cuts bills, invests in clean energy and upgrades cold, leaky homes.

“The real test now is whether politicians will commit to delivering secure jobs, affordable energy and an end to fuel poverty, or if they allow the same broken system to keep failing people.”

Wind power shows how Britain can cut bills and create jobs

A raft of new renewables have been approved by Ministers to help secure Britain’s energy supply and protect households from price shocks linked to the cost of gas.

12 offshore wind projects have been given permission for development with an average wholesale cost of £90 per megawatt hour of energy generated (£90/mwh). In 2026 to date the cost of electricity generation has been around £94/mwh. The projects are expected to create at least 7,000 jobs.

Data from ECIU suggests that without wind power on the grid, the cost of electricity in 2025 could have been as high as £121 per MWh meanwhile, experts claim that new gas-fired power plants are unable to generate electricity much below £150/mwh.

Gas-fired electricity-generating power stations have also been controversial for charging extortionate rates to operate during peak demand times, making profits which were not subject to the Windfall Tax.

A spokesperson for the End Fuel Poverty Coalition commented:

“These auction results are exactly the kind of outcome households need after years of volatile bills driven by fossil fuels.

“Wind power is already cutting prices by pushing expensive electricity generated by gas-fired power stations off the system and this trend looks set to continue. With the North Sea running out of gas and new gas power plants taking close to a decade to deliver, renewables create a credible route to more stable pricing and energy security.

“But lower costs on paper must translate into lower bills in reality.

“Consumers need full transparency on how these contracts will affect prices, clear limits on excess profits across the energy industry and electricity pricing reform so the savings from clean power are properly passed through.

“If that happens, today’s announcement can be a real step towards ending fuel poverty, not just hitting targets.”

Wind power set for further investment

The government has unveiled its long-awaited Contracts for Difference “AR7 budget” for offshore wind, with £900 million for fixed projects and £180 million for floating wind.

The announcement comes as new UCL research shows wind power has already saved UK consumers billions, cutting wholesale prices and shielding homes from volatile gas markets.

Yet with strike prices of £113/MWh for fixed wind and £271/MWh for floating, concerns remain that bills may increase, while ministers insist that the government “won’t buy at any price.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“The North Sea is running out of gas and new gas power plants could take the best part of a decade to even get off the ground. Britain simply can’t rely on fossil fuels for its energy security.

“That’s why renewables are so important. They cut our dependence on gas imports and prices and create jobs where they’re needed most. But this transition has to be managed fairly.

“The public deserve to clearly see how they benefit, through lower electricity prices, greater transparency on how the strike prices work, and clear profit caps that ensure developers don’t cash in at consumers’ expense.”

Blair Institute’s ‘reset’ plan risks powering delay, not progress

A new report from the Tony Blair Institute for Global Change backs calls for a “reset” of the UK’s electricity strategy, but critics warn it could play into the hands of those seeking to slow down clean-power investment.

A spokesperson for the End Fuel Poverty Coalition welcomed “any serious discussion about how to make our energy transition smarter, faster and fairer,” but also commented:

“Given that by 2027 the North Sea will no longer be able to provide enough gas to heat our homes, this report must not become a pretext to delay vital moves to improve energy security and bring down bills.

“Scrapping contracts for green power, weakening support for renewables or backing away from decisive grid upgrades will continue to keep households locked into volatile fossil-fuel markets and higher bills.

“The report’s conclusions also raise questions about the Tony Blair Institute’s funding and affiliations. As reported by The Guardian, the Institute has received financial support from governments and entities linked to fossil fuel-producing states, including Saudi Arabia and the United Arab Emirates.”

Ed Matthew, UK programme director for the independent climate change think tank E3G said:

“The only solution to get off the gas price rollercoaster is to get off gas.

“Our research shows that it is possible for the Government to reach its 2030 clean power target whilst reducing electricity bills by more than £200.

“But that requires urgent action by government to implement cost cutting policies, including moving levies off electricity bills into the Exchequer [general taxation].”

Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit (ECIU), added: “The public may be more interested in their energy bills than what percentage of clean power the UK reaches in 2030, but renewables are already lowering wholesale power prices by around a quarter, or £25 per megawatt hour.”

Energy bosses warn of further bill increases in evidence to MPs

Electricity prices could increase by a fifth, according to evidence given to MPs by energy company bosses.

The “big six” energy suppliers were questioned by the House of Commons Energy Security and Net Zero Select Committee about energy bills.

A spokesperson for the End Fuel Poverty Coalition, commented:

“It’s highly concerning that energy bosses have painted such a bleak outlook for energy bills in coming years.

“With over 12 million households struggling with the cost of heating and energy debt at record levels, it’s clear that electricity pricing must be fairer, standing charges reduced and that the Government must look at how any vital investment in energy infrastructure is paid for.

“Ministers and the regulator should set out a clear long-term pathway so that the public knows what the fixed costs of the grid are likely to be, what schemes will be available to help improve energy efficiency and what financial support will be in place to help those in fuel poverty.

“The nation’s energy system is going through huge changes to improve energy security, meet demand* and bring down the cost of generating energy. But as this change happens, the Government mustn’t forget about households struggling through a fifth winter of high bills.”

The End Fuel Poverty Coalition’s written evidence to MPs on the Committee Inquiry [pdf] highlighted how the energy system is unfair by design — with standing charges, supplier failures and gas-linked pricing hitting low-income households hardest.

The evidence recommended:

  • Fairer pricing that reflects cheap renewables

  • A fully funded £13.2bn Warm Homes Plan

  • Social tariffs & lower standing charges

  • A regulator that prioritises bringing down energy bills

*Even the lowest prediction by the National Energy System Operator suggests that electricity demand will increase by 93% between now and 2050.

Gas and electricity winter outlook highlights fragile energy security

A new report from National Gas that reveals a decline in Britain’s gas storage capacity, driven by the shutdown of the Rough site which is owned by Centrica, increases the UK’s reliance on imported liquefied natural gas (LNG) during periods of high demand.

Recent deals struck by Centrica means the firm controls c.10% of gas needs and also now owns the Grain LNG import facility in Kent.

The National Energy System Operator’s winter outlook report suggests that electricity supplies for the winter looked mostly healthy, but with a risk of some “tight days”.

A spokesperson for the End Fuel Poverty Coalition commented:
“Britain’s energy security should never depend on the commercial decisions of one private company. Yet with Centrica controlling vital gas infrastructure and imports, the country is now exposed to their boardroom choices.

“By refusing to refill Rough ahead of winter, Centrica has effectively weakened one of Britain’s key defences against cold snaps and price spikes. This leaves households more reliant on expensive imported gas and more vulnerable to market volatility.

“This also highlights that, even if new gas fields are approved, the North Sea will be unable to produce enough gas to cover our home heating needs by 2027 – leaving the country reliant on imports.

“The Government must not leave our energy security to chance.

“Alongside treating gas storage as critical national infrastructure, we also need to continue the shift away from gas by investing in homegrown renewable power – so we’re no longer at the mercy of fossil fuel markets.

“But to support this shift, we must also ensure the electricity system is ready and reform electricity pricing. While National Grid expects sufficient capacity this winter, there will still be tight days where supply and demand are finely balanced. Expanding renewables and electricity supply is essential if we are to meet future demand from cleaner heating and ensure a secure, affordable energy system for all.”

Scrapping UK climate law will not reduce energy bills

Plans by the Conservative Party to replace the Climate Change Act have come under fire for locking Britain into costly gas imports at a time when North Sea reserves are rapidly running out.

Environmental groups also condemned the move, with the E3G think tank describing it as “a monstrous act of economic and environmental vandalism.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“Kemi Badenoch says that the Conservatives want to put ‘economic growth and cheap energy first’, but there is no way to lower bills or energy security by prolonging our dependence on gas.

“By 2027, the UK will not be able to produce enough gas to heat our homes. And, even if new gas fields are approved, by 2050 the country will be left almost entirely reliant on gas imports as the level of reserves in the North Sea gas basin continues to deplete.

“Keeping households hooked on gas – which we will have to import at global prices from countries such as Trump’s America and Qatar – will only increase the profits of global firms and increase the misery of people unable to afford the sky-high prices.”

Labour Party conference ends with focus on energy bills

The Energy Secretary has announced initiatives to try and bring down energy bills, boost green jobs and ban fracking at the Labour Party Conference in Liverpool.

On the day that the average energy bill rose by 2.21% year-on-year rise (now 68% or £713 a year higher than in the winter of 2020-21), Government ministers have pointed to the work to deliver more renewables and “in the coming weeks” an announcement on the biggest home upgrade programme in British history.

A spokesperson for the End Fuel Poverty Coalition, commented:
“The Government is right to fight for homegrown, clean energy. The North Sea is running dry – even with new fields, the UK won’t produce enough gas to heat our homes by 2027. What’s more, fracking is unsafe, unpopular and unable to meaningfully reduce energy bills.

“So ramping up clean power is the only way to bring our bills down in the long term while providing a secure energy future.

“But as we approach a fifth winter of the energy bills crisis, households are struggling to cope with bills which remain hundreds of pounds a year above where they were in winter 2020/21 and energy debt is now at record levels. Meanwhile, new analysis from the Common Wealth think tank suggests that around 24% of every household energy bill is taken as profit by the energy industry.

“This is why we need action to provide more support to those who need it the most alongside improved energy efficiency and lower bills for households now.”