Plans for the UK to become a green energy superpower could help reduce costs for British steelmaking, a supplier has said.
Prime Minister Sir Keir Starmer visited a wind farm near Carmarthen, west Wales, today as part of a trip to promote his ambition for renewable power through setting up GB Energy.
The public company will have £8.3bn of funding in the next five years, and is set to develop future offshore wind projects through development before restoring them to private owners.
Sir Keir met new Welsh First Minister Eluned Morgan to discuss his hopes of making Britain an “energy superpower” – set to include a key role for Wales – after the Welsh government previously launched Trydan Gwyrdd Cymru to speed up renewable and green energy development.
It comes as British steelworks face energy costs more than double that of France or Spain, according to research by UK Steel, at £113 per MWh, versus £61 per MWh, on average.
Peter Murray from supplier and construction firm, Murray Steel Buildings, said: “Steel is an integral part of our infrastructure in the UK and it’s therefore vital that the sector in the UK is able to be competitive with the rest of Europe.”
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He added: “I very much look forward to hearing more about the government’s plans for Great British Energy.”
While Frank Aaskov, from UK Steel, recently stressed the need for lower energy prices for the energy-intensive sector to deliver on decarbonisation, via lowering grid connection costs.
“The steel industry is the foundation of the UK’s manufacturing and economic strengths,” he said. “We must not lose sight of how important electricity costs are in the move to green steel as we fully switch to electric arc furnace technology to secure steel for our nation.
“A new government must deliver the lowest electricity prices in Europe.”
Starmer pledged: “I am determined that Wales is at the very heart of our mission to make Britain an energy superpower, with renewables powering homes right across the country.
“GB Energy will put the whole of the UK on the right path to deliver the independence we need, while helping to deliver lower bills… and creating the next generation of skilled jobs.”
The Prime Minister described the green power transition as a “massive opportunity” for the nation, and said Wales had the “natural resources… shallow seas and… skilled people”.
Sir Keir has previously stood by Labour’s claim that GB Energy will help slash household bills by £300 a year.
But Conservative shadow energy secretary Claire Coutinho previously cast doubt on it, saying voters had been “sold a lie” that their energy bills will drop by that amount.
Octopus Energy Generation CEO Zoisa North-Bond welcomed the government’s plans, stating: “Together with the industry, the government can make the UK a clean energy superpower, unleashing investment, boosting economic growth and slashing bills.”
She added: “Onshore wind is not just fast to build and cheap – it’s also a favourite among Brits… this could become the norm, not the exception.”
Mary Starks, vice-president of policy at OVO, said: “We need to work together to encourage households to make the switch from petrol and gas, to green electricity for transport and heating.
“To achieve this, the government must prioritise making electricity cheaper by rebalancing levies away from electricity bills, enabling more households to benefit from cheap, green energy.”