Electricity Connections. Simplified.
Yesterday, 30th October 2024, the Chancellor set out the UK’s new budget. So, what does this mean for the energy industry?
It remains clear that the industry’s path forward depends upon re-evaluating outdated practices and strengthening collaborations between regulators and industry experts alike to effectively advance toward Net Zero goals.
While most information published in the budget was in line with expectations, there was certainly an evident commitment to move the UK forward.
The 2024 Autumn Budget document stated that:
“Transitioning to Net Zero and delivering on the government’s clean energy superpower mission is central to ensuring sustainable and resilient long-term growth. The government will deliver this transition in a way that captures economic opportunities, securing investment and growth in clean energy industries across the UK”.
The full Budget document confirms that the government will invest over £200 million in 2025-2026 to speed up the deployment of EV charge points. In addition, £120 million will be allocated during this period to support the purchase of new electric vans and the production of wheelchair-accessible EVs.
While there are still barriers to the transition, it’s encouraging to see the government prioritise the expansion of EV charging networks to decarbonise UK transport.
The Chancellor announced an immediate allocation of £125 million for GB Energy to establish its new headquarters in Aberdeen, with a total of £8.3 billion set aside for the duration of the Labour government. Additionally, the budget confirmed £3.9 billion in funding for carbon capture, utilisation, and storage (CCUS) for 2025-2026, a previously announced and debated plan. Funding was also revealed for 11 new green hydrogen projects in industrial areas across England, Scotland, and Wales.
The Warm Homes Plan has been allocated £3.4 billion over the next three years to enhance heat decarbonisation and improve household energy efficiency. This funding will help 225,000 households reduce energy bills by over £200 through initiatives like the Boiler Upgrade Scheme and support for the UK heat pump supply chain.
New investment in the Affordable Homes Programme is a positive step forward, along with efforts to boost planning capacity within Local Authorities. However, the proposed rapid implementation of these offers a challenging timeline.
To achieve our energy transition goals, it’s essential for the Government to focus on areas that support the deliverability of infrastructure projects and to unblock the grid constraints. While the budget appears to bring forward some promising steps for decarbonisation & Net Zero, with substantial investments targeting household energy efficiency, clean energy, and green skills, accelerating grid connections and developing new network infrastructure remains vital and our main focus.
Spencer Thompson, CEO of the Eclipse Power Group said:
“We firmly believe, as a network operator, the electricity industry can do much more to accelerate and simplify the process and challenge long standing industry standards and rules that are not fit for purpose in today’s net zero world. This needs close collaboration with industry partners and customers to balance achieving the net zero goals.
We have a large community of developers and customers who need more certainty in the coming weeks and months to achieve their infrastructure investment goals and demystification of the grid connection world.”
We look forward to seeing how the new budget will further drive innovation and collaboration in the energy industry.
Eclipse Power Networks is an Ofgem Licensed Independent Distribution Network Operator (IDNO) that offers a flexible approach to electricity connections. Working collaboratively, we provide tailored and cost-effective engineering solutions for your projects. We guide you through the entire process, ensuring a smooth journey from start to finish.
Get in touch with our friendly experts to find out more about how we can simplify your grid connection.