Clean Energy Industries sector plan

Grid reform and infrastructure investment

The UK grid faces a ‘zombie queue’ of projects seeking government and planning permissions. The queue covers 700GW of projects waiting for connection, far exceeding the required 200GW set out in the Paper.

The plans include to reduce the zombie queue include:

• reforming grid access to prioritise strategic projects
• launching a ‘connections accelerator’ by the end of 2025
• using the Planning and Infrastructure Bill to streamline development.

In addition to the grid, the UK’s ports require upgrades to support renewable deployment, particularly the supply of offshore wind turbines. This is evidenced by Orsted’s announcement that it will use Teesworks for its Hornsea 3 supply port and the recent funding by the National Wealth Fund of the Teesside Port.

Financing and market support

New initiatives like the British Industrial Competitiveness Scheme (2027) will reduce industrial power costs by up to £40/MWh. This is critical given UK industry currently pay some of the highest energy prices in Europe.

There is also support for Corporate Power Purchase Agreements (CPPAs) to expand funding avenues.

The National Wealth Fund will commit at least £5.8 billion over this Parliament and Great British Energy will receive an additional £700 million to support renewable energy growth.

Carbon Capture and net zero strategy

The UK’s Carbon Capture and Storage (CCS) sector trails Norway in cross-border carbon trading. From January 2027, the UK will introduce a Carbon Border Adjustment Mechanism to link domestic carbon pricing with Europe. The Industrial Strategy seeks to position the UK as Europe’s CO₂ storage hub, creating new employment opportunities — especially for oil and gas workers.

Climate leadership and political messaging

Ed Miliband’s climate emergency speech reinforces the government’s commitment to net zero and climate science. He stresses that climate action is both an economic opportunity and a moral responsibility to future generations. Miliband also rebuts critics who claim UK net-zero targets are unattainable, arguing leadership on climate is central to national identity.

However, Reform has questioned the economic value of the UK’s stated net zero plans together with the pressures that such a plan will have on the UK’s energy pricing. Reform MP for Boston and Skegness, Richard Tice, has stated that all AR7 applications will be revoked should Reform come to power in the next general election.

Oil and Gas overlooked

The strategy barely mentions oil (three times) and gas (seven times) across 160 pages.

Offshore Energies UK (OEUK) chief David Whitehouse has urged the government to recognise oil and gas as essential to industrial UK. The UK's energy reliance is still 75% on oil and gas, yet domestic production is projected to meet less than one-third of future demand, with the demand through to 2050 being estimated at 15 billion barrels of oil equivalent (BBOE). Whitehouse advocates targeting at least 50% as a North Sea target for the UK to be self-sufficient, for example, extracting 7.5 BBOE from UK waters.

The Industrial Strategy’s short-term plans (such as lowering electricity bills for manufacturers) are seen as inadequate without long-term investment in North Sea energy, which should be seen as an integral and essential part of the UK’s energy mix for the next 25 years.

This message is further expanded upon by Richard Tice, who has stated that any companies bidding in the upcoming Allocation Round 7 (AR7) are doing so at their own risk, as should Reform come to power, all AR7 will be reassessed.

For more information on the key points raised in this article, get in touch your usual Crowe contact.