The UK government set out a raised offshore wind ambition of up to 50GW by 2030, including up to 5GW of innovative floating wind, in the British Energy Security Strategy published in April 20221. The strategy states that deployment pace is to increase by 25 per cent with smarter planning1. The Welsh Government's energy generation report for 2021 records that the strategy "confirmed a revised target of 50 GW of offshore wind by 2030, including a sub-target of 5 GW of floating offshore wind"2.
The strategy sets out a series of measures alongside the wind target. It commits to doubling the ambition for low carbon hydrogen production to up to 10GW by 2030, subject to affordability and value for money, and to increasing plans for civil nuclear deployment to up to 24GW by 20501. It also commits to zero-rating VAT for the next five years on the installation of energy saving materials, including insulation and low carbon heating, and to expanding the Energy Company Obligation to £1 billion per year from 2022 to 20261.
On household bills, the strategy states that the Warm Home Discount will increase to £150 in October and extend its coverage to assist three million people, and that there will be a £200 reduction in energy bills from October for all households in Great Britain through the Energy Bills Support Scheme1. It also commits to launching the £450 million Boiler Upgrade Scheme in April 20221.
"Our ambition is to deliver up to 50GW by 2030, including up to 5GW of innovative floating wind"
The strategy also sets a 2035 date by which the government intends to phase out the sale of new and replacement gas boilers, and states that it plans to blend up to 20 per cent hydrogen into the natural gas grid, with a final decision by the end of the following year1. On fossil fuels, it commits to phasing out the use of Russian oil and coal by the end of 2022, and Russian LNG gas imports as soon as possible thereafter1.
The Welsh Government's report gives context on generation in Wales, where the strategy's offshore wind target applies alongside devolved policy. It estimates that 28 per cent of total electricity generation in Wales came from renewable sources in 2021, down from 33 per cent in 2020, and that renewables generated the equivalent of approximately 55 per cent of Wales' electricity consumption, reduced from 56 per cent in 20202. Wales generated a total of 27.1 TWh of electricity in 2021, 7.7 TWh of which came from renewables and 19.5 TWh from fossil fuels2. The report states there is now 3,508 MW of renewable electricity capacity in Wales, with 116 MW installed in 20212.
Why it matters for households
Offshore wind capacity is not something a household installs, but the target affects the wider electricity system that homes draw on. More renewable generation on the grid reduces exposure to volatile international gas prices, which the strategy identifies as the driver of recent bill increases1. For a household, the practical link is between the amount of low carbon electricity generated domestically and the share of a bill that is set by imported fuel costs.
The strategy's household-facing measures sit alongside the generation targets. The Energy Bills Support Scheme reduction of £200 from October and the increase in the Warm Home Discount to £150 are direct interventions in bills1. The zero-rating of VAT on energy saving materials and the extension of the Energy Company Obligation affect the cost of improving a home's efficiency, which reduces the energy a home needs to buy1. The 2035 phase-out date for new and replacement gas boilers signals a longer-term shift in how homes are heated, though the strategy does not set out the replacement technologies or support in detail1.
For households in Wales, the devolved picture matters. The Welsh Government's report notes that the closure of the Domestic Renewable Heat Incentive has broadly been replaced by the Boiler Upgrade Scheme2, and that the First Minister committed in July 2022 to introducing a new infrastructure consenting Bill2. Planning rules for home energy equipment differ across the UK nations, and readers in Scotland, Wales and Northern Ireland face different consenting regimes. The relationship between devolution and household energy independence shapes which schemes and targets apply where a home is.
What happens next
The strategy lists several dated steps. The £450 million Boiler Upgrade Scheme was to launch in April 2022, the £240 million Net Zero Hydrogen Fund later in April, and the £120 million Future Nuclear Enabling Fund in April1. A comprehensive Energy Advice Service was to launch on GOV.UK by summer, and the first UK-Qatar Strategic Energy Dialogue was to be hosted in May, with more details to be announced in May1. The North Sea Transition Authority planned to launch another licensing round in the autumn, with the next round a year earlier in March 20231. A blueprint for the whole system was to be set out by the end of 2022 in the Holistic Network Design and Centralised Strategic Network Plan1. The strategy states that the phase-out of Russian oil and coal would be completed by the end of 20221.
Sources2 cited
- British Energy Security Strategy, data.parliament.uk
- energy-generation-in-wales-2021.pdf, gov.wales