• UK positions clean energy as core to national security after second fossil fuel shock in five years, with gas still setting power prices around 60% of the time
• Government accelerates renewables, electrification and pricing reform, targeting over 60% of electricity under fixed-price contracts by 2030
• More than £90 billion in private clean energy investment reinforces shift, with policy aimed at reducing exposure to volatile global fuel markets

The UK government is accelerating its clean energy transition, framing it as a direct response to renewed volatility in global fossil fuel markets and a cornerstone of long-term economic security.

Speaking at the National Growth Debate, officials outlined a sweeping strategy to reduce reliance on imported gas, following what they described as the second fossil fuel shock in less than five years. The disruption, tied to geopolitical tensions affecting oil and gas flows, has once again exposed the UK’s vulnerability to international energy pricing.

“The era of fossil fuel security is over, and the era of clean energy security must come of age,” Ed Miliband, UK Energy Secretary. “For Britain and so many other countries, clean energy is now the only route to financial security, energy security and indeed national security.”

Structural Exposure to Fossil Fuel Markets

Despite significant progress in renewables, the UK remains heavily exposed to fossil fuels across its economy. Around 30% of electricity generation still comes from gas, while 90% of households rely on gas or oil for heating. Industrial processes and transport remain similarly dependent.

This structural reliance means global price shocks transmit quickly into domestic energy costs. Even when renewables generate power, gas frequently sets wholesale electricity prices.

Clean Energy as a Price Stabiliser

The government argues that domestic renewables are already mitigating these risks. Since 2010, renewable energy has grown from roughly 7% to over 50% of electricity generation.

Independent analysis indicates this shift has reduced wholesale electricity prices by up to a quarter in recent years by displacing gas. Similar trends are visible internationally, with countries such as Spain and France expanding renewables and electrification to limit exposure to volatile fuel markets.

“An alternative that cannot be disrupted by foreign wars because it comes from our own wind, sun and nuclear resources” is now central to UK policy, he said.

Faster Build-Out of Clean Power Infrastructure

Policy now focuses on accelerating deployment. The UK has already secured enough clean power capacity to supply the equivalent of 23 million homes through recent renewables auctions, alongside its largest nuclear expansion programme in decades.

New measures aim to unlock an additional 10GW of renewable capacity by utilising public land, including sites owned by the Ministry of Defence, Network Rail and Forestry England.

The government also plans to remove planning and grid bottlenecks. “Every irrational bureaucratic obstacle in the way of clean energy leaves us more insecure as a country,” he said.

Electrification Gains Momentum

Beyond power generation, the strategy emphasises rapid electrification of homes, transport and industry. Demand for clean technologies is rising sharply, driven by both policy support and consumer economics.

Miliband added “Solar panel sales rose by more than 75% and heat pump sales doubled between February and March,” the government noted, while electric vehicle adoption reached record levels. “New electric cars are now on average cheaper to buy than petrol cars for the first time.”

To support uptake, the UK is expanding incentives, including grants of up to £9,000 for heat pumps in homes reliant on oil or LPG, alongside £15 billion in funding through its Warm Homes Plan.

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Reforming Power Pricing to Break Gas Link

A central pillar of the strategy is reforming electricity pricing to reduce the influence of gas. Currently, gas still sets electricity prices roughly 60% of the time.

The government plans to move legacy low-carbon generators onto fixed-price contracts and expand Contracts for Difference coverage from around 20% of generation today to over 60% by 2030.

These changes are designed to “accelerate the delinking of gas and electricity prices,” reducing consumer exposure to fossil fuel volatility while stabilising returns for clean energy investors.

Managed Transition in the North Sea

The UK is maintaining a balanced approach to domestic fossil fuel production. Existing North Sea fields will continue operating, but new exploration licences are being phased out.

“You can’t solve a fossil fuel crisis by doubling down on fossil fuels,” he said, while rejecting calls for an immediate shutdown of production.

Officials emphasised that new licences would not materially improve energy security, given the basin’s long-term decline and the UK’s status as a net importer for two decades.

Investor and Policy Implications

For investors and corporate leaders, the direction of travel is clear. The UK is aligning industrial policy, infrastructure investment and market reform around electrification and domestically generated clean power.

More than £90 billion in private investment has already been committed to UK clean energy since the current government took office. Policymakers argue that the cost of inaction remains far higher, with a single fossil fuel shock potentially matching the total investment required to reach net zero by 2050.

A New Energy Paradigm

The UK’s approach reflects a broader global shift, as countries reassess energy security in the context of geopolitical instability and climate risk.

“Faced with the two positions of ‘every last drop’ and ‘turn off the taps’, we will maintain our pragmatic, sensible position for a managed transition,” he added.

The outcome is a recalibration of energy policy, where decarbonisation, economic resilience and national security are increasingly inseparable.

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