The Energy Security Strategy - what businesses need to know

The government has released its long-awaited Energy Security Strategy, which it says includes “bold plans” for “cleaner and more affordable energy to be made in Great Britain to boost long-term energy independence, security and prosperity”.

However, it was published amid disagreement rumours between Number 10 and Number 11, and many energy industry and environmental commentators have been quick to point out that there is not much in it to help struggling businesses and households right now. Business Secretary Kwasi Kwarteng even admitted that it is "more of a medium three, four, five-year answer".

As such, some have dubbed it an Energy Supply rather than a ‘Security’ Strategy. For us, it feels like a missed opportunity to achieve some quick wins, particularly for businesses, who are struggling right now with short-term liquidity issues and high invoices caused by the volatile wholesale market.

For example, helping businesses reduce energy consumption through more innovative efficiency solutions is a real ‘no regrets’ action that could be taken. These can be implemented quickly and would result in immediate savings both in terms of their bottom line and decarbonisation efforts.

Similarly, incentivising businesses to become more self-sufficient through renewable on-site generation is a ‘win-win’ solution. It would protect businesses from market volatility and help them decarbonise. In addition, businesses with on-site assets can provide a much needed source of power during times of high demand.

So, with short-term actions lacking, what positives can businesses take from this latest announcement?

A growth in clean energy is a good thing
Clearly, any increase in homegrown power from low-carbon sources is a welcome move to help businesses become more energy independent, less carbon intensive and more resilient in the medium to long term.

The key headlines from the Strategy are:

• Acceleration of nuclear - the ambition is to have up to 24 gigawatt hours (GW) by 2050, representing up to around 25% of projected electricity demand. A new government body, Great British Nuclear, will be set up and there will be the launch of a £120 million Future Nuclear Enabling Fund this month
• Increase in offshore wind - a commitment to have up to 50GW by 2030, with up to 5GW from floating offshore wind in deeper seas. The government has pledged to cut planning approval times for new offshore wind farms from four years to one year to meet this target
• Consultations around onshore wind - despite the rumours that planning rules would be relaxed to allow more onshore wind, the Strategy has instead said that the government “will be consulting 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”