Industry reaction to UK energy plans in King’s Speech to Parliament

In his first King’s Speech to Parliament on Tuesday, King Charles III outlined several energy proposals that received mixed reactions from the green industry.

While the speech set out legislation to mandate annual oil and gas licensing in the North Sea, it also mentioned the government’s intention “to attract record levels of investment” in renewables and speed up grid connections.

Environmental groups expressed concerns over continued oil and gas exploration but welcomed commitments to renewables and hitting net zero emissions targets. The speech comes at a time when the UK is seeking to bolster energy security while adhering to climate goals.

Here we round up the reaction of green groups and other stakeholders:

Josh Emden, senior research fellow at IPPR:

“By far the best way to improve energy security, cut bills and support workers is investing more time and money in renewables. Our research shows new oil and gas fields would only cut oil and gas imports by 4 per cent and 2 per cent respectively. The alternative of no new fields and faster renewable rollout would cut them by 12 per cent and 17 per cent.

“This is just further confirmation of what public polling is already showing: that the government is spending too much time distracted by the false promise of oil and gas and not enough time rolling out renewables more quickly that could actually make a difference to the cost of living.”

Tom Faulkner, head of assets & infrastructure and networks at Cornwall Insight:

“The government’s commitment to reforming energy grid connections is a crucial first step, but getting network reforms right is a complicated task. Ensuring capacity to tackle current challenges is necessary , however, building resilient and high-performing transmission and distribution networks also requires proactive investment, as we need to future-proof the system to support the UK as it transitions to a renewable-led future.

“While investment is crucial, planning rules are also denying the country of the efficient energy system it needs. Streamlining planning regulations to accelerate the construction of essential infrastructure like transmission lines and substations is an essential ingredient to making sure everybody’s energy needs are met now and into the future.

RenewableUK’s chief executive Dan McGrail:

“We welcome the government’s commitment in the King’s Speech to attract record levels of investment in renewable energy and to speed up grid connections to reach net zero. But to achieve this, we’re asking the Chancellor to set out specific policies in his Autumn Statement later this month.

“The UK’s energy security and net zero goals can only be met if we have offshore wind as the backbone of our energy system. To make up for the ground lost in this year’s CfD auction, we’re urging Mr Hunt to help the UK to regain its position as the most attractive place to invest in offshore wind, despite fierce competition from the US and the EU.

Rachel Solomon Williams, executive director of the Aldersgate Group:

“The proposed new mandatory oil and gas licensing rounds announced in the King’s Speech have been justified on the basis that they would support a more secure and diverse energy system. However, there is no evidence that the commodities extracted through these new rounds would be supplied into the UK market, and therefore how they contribute to energy security or lower bills. By contrast, it is clear that domestic renewable energy production supports security and diversification directly, so we welcome the renewed commitment to attracting investment into renewables and reforming grid connections. Maintaining a priority focus on low carbon generation will be essential for the UK to retain credibility as an international climate leader as we approach COP28.”

Energy UK’s chief executive Emma Pinchbeck:

“It was good news for the industry to hear the speech highlighting the government’s intention to attract record levels of investment in renewables and speed up grid connections. Both are essential to increasing our supply of clean, cheaper homegrown power in line with the government’s ambitious targets and we now need further detail on how it plans to deliver these.

“While there has been much focus on new oil and gas licences – and while these will continue to play an important role during the energy transition – they will not lower customer bills or significantly improve the UK’s energy security. So the government’s priority must be to reduce our dependence on gas and the exposure to volatile international energy markets that the King’s Speech referred to.”

Caroline Lucas, Green Party MP for Brighton Pavilion:

“When people are crying out for a serious legislative agenda – to reduce the cost of living, tackle the climate emergency, and guarantee warm and secure homes – what we got instead was government by gimmick.

“The PM’s plans for annual oil and gas licensing round won’t improve our energy security or cut energy bills, as his own Energy Secretary accidentally admitted yesterday – but they will wreck our climate and lead to this government handing over billions in tax breaks to already mega-rich fossil fuel giants. Also caught in the crosshairs of Sunak’s culture wars, a whole host of vital legislative measures were shamefully omitted – ditching the long overdue ‘conversion therapy’ ban, and an end to no-fault evictions being fudged.

“And the King must have found the PM’s words sticking in his throat as he had to read out a catalogue of nature-wrecking measures in this speech – which we know this issue is so close to his heart, but clearly couldn’t be further from his government’s.

“This King’s Speech – full of gimmicks and cynical political game-playing – shows that Rishi Sunak has no intention to govern the country. His zombie government deserves to be buried – only a general election now will end this damage once and for all.”

Rebecca Newsom, head of politics at Greenpeace UK:

“All of the world’s superpowers are investing heavily in green infrastructure, renewables and the clean tech of the future because they know it will generate economic growth, jobs and ultimately help to stop the planet from burning. Instead, our Prime Minister has decided to line up a licencing bonanza for his pals in the oil and gas industry that the government has already admitted won’t lower bills – and won’t deliver energy security either. Together, with his failure to commit to ratify the Global Oceans Treaty, Rishi Sunak’s divisive electioneering is a complete and utter failure of leadership.”

Heather Plumpton, senior policy analyst at Green Alliance:

“The average UK energy bill is twice what it was two years ago and, as the energy security secretary admits, these new oil and gas licences won’t do anything to bring that down. Instead, more North Sea drilling will only pump more money into fossil fuel companies, who aren’t investing in the transition to cleaner energy and aren’t going to be taxed to help fund it.

“To drive down bills and increase the UK’s energy security, we don’t need new legislation aimed at political point scoring, we need to fulfil existing plans to insulate homes and make the most of abundant and cheap renewable energy.”

Jess Ralston, head of energy at the Energy and Climate Intelligence Unit:

“Changes to North Sea licensing are just political theatre, as Ministers themselves have now recognised that they won’t help to lower bills. In fact, today’s speech leaves bill payers worse off as private renter’s insulation standards are confirmed as scrapped. It seems that the government is firmly positioning itself as on the side of the landlord over the renter, a kick in the teeth for those still struggling with the cost of energy bills that remain high.

“The way to energy independence is reducing demand for gas, which we will have to import more of as the North Sea continues its inevitable decline. But some politicians seem to have their head stuck in the sand, with one in four Conservative MPs not believing the industry’s own projections for gas production falling.”

Louise Hutchins, head of policy and public affairs at UK Green Building Council:

“The government claimed to set out an agenda to tackle the long-term challenges facing the UK, yet introduced no legislation or proposals to address the catastrophic levels of energy waste from homes and buildings that are fuelling the cost of living and climate crises.

“Formally pulling the plug on minimum energy efficiency standards for private rented homes will condemn millions of people living in fuel poverty to continue enduring cold, mouldy homes. As we hurtle towards climate disaster, opening up new oil and gas extraction while failing to deal with the huge demand from gas heating in buildings will only take us further off-course from the net zero future we so desperately need.”