Spending Review: Support to bolster domestic energy production, but no sign of vital grid upgraded

Sheena McGuinness, Co-Head of Energy and Natural Resources at RSM UK, said: “The £30bn commitment to nuclear, including investment for Sizewell C and small modular reactors, seems like a slight U-turn on renewables pledges that were made last year. However, it does bolster the energy mix in the UK to support a more sustainable energy future.

“At a time when offshore producers struggle to get energy to the point of use due to the grid not being fit for purpose, and the resulting compensation payments that can rack up required in order to balance the grid, key investment into our network was missing in today’s announcement. Essentially, if we can improve our grid network then we could unlock more renewable energy, which is cheaper to produce, to fuel our future energy mix.

“It is hoped this challenge will be addressed in next week’s Infrastructure Strategy, along with more detail on the support for the Acorn and Viking carbon capture and storage projects, and much-needed clarity on the role of GB Energy and its plans.”