Britain’s Clean Energy Strategy: Building a Net‑Zero Future

Energy transition is a core foundation of the UK’s Industrial Strategy, with a bold plan for clean energy, resilient supply chains, and advanced manufacturing.

At the heart of the UK Government’s clean energy strategy is a vision that positions Britain as a “clean energy superpower,” emphasising energy independence, economic growth, and climate leadership. This ambition is backed by the establishment of the Department for Energy Security and Net Zero (DESNZ), launched in February 2023, now led by Secretary Ed Miliband and tasked with coordinating the nation’s clean energy transformation.

A central pillar of the strategy is Great British Energy (GBE): a newly established, publicly owned energy company formalised in the Great British Energy Act 2025, which received Royal Assent on 15 May 2025. GBE is tasked with accelerating domestic renewable energy generation and supply-chain development, leveraging the UK’s natural and industrial advantages.

Financing the clean energy transition is a cornerstone of the strategy. Key funding structures include:

• Significant funding earmarked specifically for offshore wind supply chains.
• A dedicated Clean Energy Supply Chain Fund to support UK‑based manufacturing of critical components such as floating offshore platforms, cables, and hydrogen infrastructure.
• The National Wealth Fund (NWF) designated to back high‑risk, critical projects in areas like carbon capture, hydrogen, gigafactories, ports, and green steel.
• The British Business Bank expanding its financing package in start‑up and scale‑up support.
• The Clean Energy Industries Sector Plan.

With its 2030 target offshore wind capacity, the UK aspires to position over half of its renewable generation around this technology. To facilitate this, the government is pursuing several reforms:

• Reducing planning and consent timelines—from up to four years to just one year.
• Strengthening national policies and facilitating strategic environmental mitigation.
• Establishing an Offshore Wind Environmental Improvement Package, including a Marine Recovery Fund and streamlined nature-based design standards.
• Rolling out the Holistic Network Design and Offshore Transmission Network Review to upgrade grid infrastructure and support efficient offshore energy integration.

The Contracts for Difference (CfD) mechanism remains a key financial instrument providing long‑term pricing certainty to low‑carbon electricity generators. The latest rounds include a Clean Industry Bonus (CIB) to incentivise domestic supply chains in technologies such as offshore wind, with potential expansion to hydrogen and onshore wind.

The strategy reaffirms nuclear energy’s role, including funding for the Sizewell C plant, and deployment of Small Modular Reactors (SMRs) supported by the launch of Great British Nuclear Low Carbon Energy Company.

CCUS projects receive strong backing through capital spending, targeting deployment at scale in regional clusters such as East Coast, Acorn, and Viking. Related work includes market intervention frameworks like the Hydrogen to Power Business Model (H2PBM) launching in 2026, supported by ongoing government-industry engagement.

The UK approved significant new renewable capacity in 2025, showing strong market response to public incentives and falling technology costs.

However, challenges persist – grid constraints, planning delays, supply‑chain bottlenecks and public opposition may threaten targets like the 2030 decarbonisation goal and the annual energy bills reduction pledge.

The UK Government’s clean energy strategy presents a robust, multifaceted approach—establishing institutional frameworks, deploying public capital strategically, fostering private investment, and bolstering clean-technology supply chains. From wind and nuclear to hydrogen, CCUS, and efficiency, the plan is comprehensive and ambitious.

Its success will hinge on execution where speeding up planning and reinforcing grid modernisation remain critical.