Expand nuclear, wind, and solar power while responsibly using UK gas reserves to reduce reliance on imports. Britain’s exposure to global gas prices in 2022 showed the risks of import dependence – the UK imported 63% of its natural gas supply in 2022. To boost self-sufficiency, the government has set an ambition to quadruple nuclear capacity to 24 GW by 2050 (roughly 25% of projected electricity demand). New reactors like Hinkley Point C and Sizewell C, alongside small modular reactors, will provide stable baseload power. Simultaneously, Britain’s renewable rollout must continue: the UK already hosts over 14 GW of offshore wind (the second-largest market globally) and is targeting 50 GW by 2030, plus expanded solar farms. Investing in energy storage and grid upgrades is critical to support these renewables. The North Sea’s remaining gas should be tapped with environmental safeguards to bolster near-term supply – domestic North Sea gas has a lower carbon footprint and supports security. Learning from France, which derives ~70% of its power from nuclear and is typically a net electricity exporter, the UK can balance a mix of nuclear and renewables to ensure reliable, affordable, low-carbon energy made at home.
Increase energy supply and upgrade infrastructure to stabilize prices for households and businesses. The recent energy crisis saw UK household bills skyrocket – in late 2022 the government had to step in with an Energy Price Guarantee capping a typical annual bill at £2,500 (even that was about double the pre-crisis level). These price spikes were driven by global gas shortages, highlighting the need to both produce more domestically and improve the resilience of the electricity grid. Boosting generation from cheaper sources (wind, solar, nuclear whose fuel is low-cost) will reduce wholesale prices. At the same time, modernizing the grid and energy storage can cut waste and regional price differences. National Grid has announced an “unprecedented” £35 billion investment to 2030 to almost double transmission capacity and remove bottlenecks. This will help bring plentiful Scottish wind power to England and enable new offshore wind farms to deliver energy without curtailment. Improved interconnectors with Europe and grid-scale batteries will further smooth out prices. An upgraded, smarter grid means fewer spikes and blackouts and lower network costs – savings that can be passed to consumers. The payoff is significant: by reducing reliance on volatile imports and network constraints, UK consumers and firms are less exposed to price shocks, keeping energy bills and inflation in check.
Ensure abundant, cheap energy for industry to revive UK manufacturing and attract global investment. High energy costs have been undermining British industry – for example, UK steelmakers paid around £113/MWh for electricity in 2023, nearly 2× the price paid by German and French competitors (~£61/MWh). This £52/MWh gap translated to an extra £117 million per year cost for the UK steel sector, hurting its profitability and deterring investment. To reverse this, the UK must deliver reliably lower power prices for industries. Expanding low-cost generation (renewables and nuclear) helps drive down the wholesale price. In addition, targeted measures like the government’s new “British Industry Supercharger” – which will cut certain network and policy costs for energy-intensive industries by ~£29/MWh – should be implemented swiftly and even expanded to close the remaining gap. Other countries shield their manufacturers: France and Germany compensate up to 90% of grid charges for industries. The UK should match these best practices so that factories here are not paying a premium. Affordable energy will make the UK more enticing for setting up new semiconductor fabs, electric vehicle plants, hydrogen electrolysers, and other energy-dependent projects. Alongside price stability, a secure energy supply (with ample reserves and redundancy) gives investors confidence to build in the UK. In sum, energy policy should be seen as industrial policy – delivering cheap, clean power will help “reindustrialize” Britain, create jobs, and boost exports in a competitive global market.
