In her first budget presentation, Chancellor of the Exchequer Rachel Reeves announced an ambitious plan to strengthen energy security and promote the growth of clean energy in the UK. During her speech in Parliament on October 30, Reeves highlighted several key initiatives aimed at driving investment in sustainable technologies and job creation in the energy sector.

Among the major allocations in the budget, £100 million will be dedicated to establishing Great British Energy (GBE), which will focus on developing clean energy projects. Based in Aberdeen, GBE aims to become a driving force for innovation and sustainability within the UK's energy sector.

Additionally, the government confirmed an investment of £3.9 billion for the first carbon capture and storage (CCUS) clusters in the country, a measure designed to equip industry with the necessary tools to develop the CCUS and hydrogen industries. This investment will not only generate jobs but also facilitate a shift toward cleaner energy sources.

The Warm Homes Plan, which will transform homes through insulation installation and more efficient heating systems, will receive over £1 billion in funding next year. The initiative includes a guaranteed initial investment of £3.4 billion for heating decarbonization and energy efficiency improvements between 2025-26 and 2027-28.

Significant investment will also go into port infrastructure, with £134 million allocated to develop ports as industrial hubs for offshore wind manufacturing and assembly. This move will not only enhance local production capacity but also position the UK as a leader in energy technology exports.

Finally, eleven new green hydrogen projects will receive support, which are essential for providing flexibility and stability to the country's future energy system.

Nuclear energy investment will continue, with £2.7 billion assigned to the development of the Sizewell C plant, underscoring the importance of this energy source in the government's energy security strategy.

Dan McGrail, Chief Executive of RenewableUK, commented on the budget: “We welcome the government’s commitment to transform UK ports into new industrial hubs. With the right grants and incentives, the UK can attract hundreds of millions in investment in offshore wind, creating a robust supply chain and generating jobs. Moreover, the new green hydrogen projects are crucial for the stability of our future energy system.”