UK Energy Strategy
Today will see the PM announce the latest energy security strategy amid soaring energy prices and the rise in the energy price cap. The announcement comes as part of the government’s target for Britain to be net zero by 2050 and to have 95% of the country’s electricity ‘low carbon’ by 2030.Within the announcement, Johnson is set to raise the UK’s offshore wind capacity by five times its current rate before the end of this decade. The Department for Business, Energy and Industrial Strategy (BEIS) says that it will hope to produce 50GW of energy through these offshore wind farms, enough to power each home in the UK. Although, this will be considerable increase from the current 11GWs of offshore wind currently generated around the UK. Nevertheless, thus far the government have shied away from making any solid commitments to onshore wind, probably swayed by the implications that NIBYISM could have on their Blue Wall. However, it is worth noting that key members of cabinet have been split over onshore wind with, for example, while Kwasi Kwarteng reportedly is looking at doubling onshore wind by 2030, those including Grant Shapps appear opposed.
Solar power is also set to become a major player in the government’s energy security strategy with it set to rise from 14GW this year to 70GW, while nuclear power is set to increase from 7GW to 24GW over the next decade or so. Additionally, the government is looking at alternative sources including hydrogen where it is looking to get 10GW of hydrogen power by 20230. This follows yesterdays’ announcement that No.11 is giving £400m in government-backed loans to the Johnson Matthey in order to boost its development of hydrogen technology. While these plans are far reaching, it will require tens of billions of pounds worth of investment in order to get within reach of the targets.
IEA to Release Strategic Oil Reserves
Hawkish Minutes from the FED
Inflation hits 9.7% in the Netherlands
Elsewhere in the market, at 10:00 we have eurozone retail sales where the market will be looking for any indication on what implications inflation has had on the consumer spending.
Have a great day.