UK focuses on new nuclear, offshore wind, clean hydrogen to boost energy security

The UK government wants 25% of electricity demand in 2050 to be met by up to 24 GW of nuclear generation capacity, up from 9 GW currently, it said in an Energy Security Strategy announcement late April 6.

The ambitious goal would see up to eight large reactors in development by the end of this decade, including at Wylfa in north Wales, with small modular reactors also playing a key role in the project pipeline.

"A new government body, Great British Nuclear, will be set up immediately to bring forward new projects, backed by substantial funding, and we will launch the GBP120 million [$157 million] Future Nuclear Enabling Fund this month," the Department for Business, Energy and Industrial Strategy said.

For offshore wind, meanwhile, the government has added 10 GW to its 40 GW-to-2030 goals, increasing the floating wind component of the target to 5 GW from 1 GW.

The new 50 GW target would be underpinned "by new planning reforms to cut the approval times for new offshore wind farms from four years to one year and an overall streamlining which will radically reduce the time it takes for new projects to reach construction stages while improving the environment," the government said.

There is only modest encouragement, however, for onshore wind, the government saying it would consult on developing partnerships with "a limited number of supportive communities who wish to host new onshore wind infrastructure in return for guaranteed lower energy bills."

Elsewhere, the strategy would seek to increase the UK's 14 GW of solar capacity, "which could grow up to five times by 2035, consulting on the rules for solar projects, particularly on domestic and commercial rooftops."

It would aim to double the existing 5 GW target for low carbon hydrogen production to 10 GW by 2030, "with at least half coming from green hydrogen and utilizing excess offshore wind power to bring down costs."

Finally, a licensing round for new North Sea oil and gas projects was planned for this Autumn, with a new task force providing bespoke support to new developments, "recognizing the importance of these fuels to the transition and to our energy security, and that producing gas in the UK has a lower carbon footprint than imported from abroad," BEIS said.

"Scaling up cheap renewables and new nuclear, while maximizing North Sea production, is the best and only way to ensure our energy independence over the coming years," said Business and Energy Secretary, Kwasi Kwarteng.

The UK's power sector is one of the most exposed in Europe to high natural gas prices, with little remaining coal plant to act as a shock absorber, S&P Global Commodity Insights said in its March 29 European Electricity Long-Term Forecast.

Low-carbon flexibility would be needed urgently to offset an acceleration in offshore wind generation, while the rapid rollout of interconnection capacity would play a major role in reducing GB's exposure at times of low wind, it said.

S&P Global assessed the price of UK spot gas at 239 pence/therm April 6, down from 275 p/th a week ago.

It assessed the price of spot power at GBP179.50/MWh, down from GBP235.00/MWh a week ago.