UK Energy Security Strategy 2024: What Does it Mean for Businesses?

The UK government unveiled its 2024 Energy Security Strategy against a backdrop of growing criticism over a cost-of-living crisis.  

For businesses operating within the UK, this announcement was more than a headline. 

At ClearVUE.Business, we recognised it as a signal that the energy industry, a critical pillar for any business’s operation, was shifting. 

The strategy underscored a truth we have been writing about for years: the era of dependence on unstable and unsustainable energy sources is ending. With this end comes a new beginning: one where energy security doesn’t just mean having enough supply. 

It means using the right kind of supply – clean, renewable, and self-sufficient – wisely. 

In this blog, we explore the new strategy, what it says about the governments’ priorities and how businesses should prepare themselves for this shift. 

What does the UK Energy Security Strategy say? 

In her address to Parliament this month, Secretary for Energy Security Claire Coutinho highlighted the UK’s successful navigation through recent energy crises and its plan for the future.  

Notably, she insisted that the UK’s energy industry has entered a new era, towards a cleaner, cheaper and more secure future.  

This includes substantial government intervention since 2022, including over £100 billion in support, measures like the Pumpwatch scheme, and reforms aimed at ensuring fair energy pricing. 

At the heart of the new strategy is a commitment to diversifying energy sources “while ensuring affordability and reliability”.  

“There are no easy solutions in energy, only trade-offs,“ Coutinho noted. “If countries are forced to choose between clean energy and keeping citizens safe and warm, believe me they’ll choose to keep the lights on. We will not let ourselves be put in that position. And so, as we continue to move towards clean energy, we must be realistic.”  

Adaptable Changes for Businesses: The Bullet Points 

These were the main takeaways for businesses from her speech: 

  • Encouragement of Private Investment in Energy Sector: The government is investing £30 billion of business investment into the UK’s energy sector to stimulate growth and innovation in clean energy technologies. 
  • Support for Energy Efficiency and Management: The government said it will encourage businesses and households to invest in energy efficiency measures and smart energy systems to reduce energy costs and consumption. 
  • Investment in Offshore Wind: The government is doubling down on offshore wind power to provide cheap, clean, homegrown energy, reinforcing the UK’s commitment to renewable energy sources. 
  • Expansion of Nuclear Energy: The largest expansion of the nuclear program in 70 years was announced. It will aim to provide a stable baseload of energy, including the development of large power plants, small modular reactors, and advanced modular reactors. 
  • Support for Renewable Energy and Technologies: The Contracts for Difference auctions will continue in efforts to drive down costs for consumers and support the growth of renewable energy sources. 
  • Investment in Clean Technology: A £20 billion commitment to carbon capture, utilization, and storage (CCUS) technology was announced, aiming to create a competitive CCUS market by 2035. 
  • Electricity Market Reform (REMA): Launching the next step of REMA to ensure cheaper bills, massive investment, energy security, and cleaner energy, the government said it will take into account considerations like zonal pricing to make the energy system more efficient and cost-effective. 

How Your Business Should React 

For businesses, the implications of the UK’s Energy Security Strategy are profound.  

Adapting to this new era requires a proactive approach to energy management, with an emphasis on efficiency and sustainability.  

Companies will actively be encouraged to invest in energy-efficient technologies and processes. The upside is that this can significantly reduce operating costs and enhance competitive advantage. The downside is that businesses who delay this investment can see higher costs and lower reputational benefits.  

Decarbonisation systems also play a crucial role in enabling businesses to adapt to the UK’s energy strategy. Companies are encouraged to assess their carbon footprint and implement strategies to reduce emissions through energy efficiency measures. This not only aligns with the national agenda but also resonates with increasing consumer demand for sustainable and responsible business practices. 

The Way Forward 

The UK’s Energy Security Strategy sets a clear path for the nation’s energy future, but it is clear that the government cannot do it alone. 

The strategy’s holistic approach, balancing short-term needs with long-term sustainability goals, provides a framework for businesses to adapt, innovate, and thrive in the new era of energy security and environmental stewardship. 

Businesses have a pivotal role to play and by embracing energy efficiency, energy management, and decarbonization systems, they can contribute to the UK’s energy security while driving growth in an increasingly competitive global landscape. 

We’ve helped several businesses adapt to this change at ClearVUE.Business. We provide a system that automatically measures your carbon footprint in real-time. We also provide expert, tailored advice on reducing these emission and lowering your energy bills, helping you stay updated in a changing world.  

Get started with a free demo of our product here. 

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