The UK will increase investment in clean energy to over £30 billion per year

The UK government plans to increase current business investment in advanced clean energy industries to over £30 billion per year over the next ten years as part of its broader industrial strategy, which was announced on June 23, according to Argus Media.

The new clean energy development plan sets out a framework for boosting the UK economy through 2035 by investing in low-carbon technologies. It focuses on key sectors including offshore and onshore wind, nuclear, hydrogen, carbon capture, utilization, and storage (CCUS), and heat pumps.

The state-owned Great British Energy company will invest more than £8.3 billion during this parliamentary term, including £1 billion in the Clean Energy Supply Chain Fund to support domestic production. The £27.8 billion National Wealth Fund will allocate at least £5.8 billion to projects in CCUS, hydrogen, ports, and green steel.

At the same time, the British Business Bank will allocate £4 billion as part of the Industrial Strategy Growth Capital package to attract £12 billion in private investment for companies involved in climate technology.

It is also expected that hydrogen projects supported by rounds of funding for these purposes will secure £400 million in private investment by 2026. The creation of a regional hydrogen network in the country is planned for 2031.

It should be noted that the UK will reduce electricity costs for industry. This step is a key measure of the government’s industrial strategy – a 10-year plan to increase investment and develop industries of the future. From 2027, large electricity consumers (aerospace, automotive, and chemical companies) will be exempt from paying several green levies, which will reduce their electricity bills by 25% — this applies to more than 7,000 companies. The government is also increasing support for companies in sectors such as steel, chemicals, and glass. This will include an increase in the discount on network usage fees to 90% from 2026 (currently 60%).