Delivering Great Britain's energy security
Speech by Kwasi Kwarteng, Secretary of State for Business, Energy and Industrial Strategy, to the Harvard Kennedy School.
Hello. Thank you to my friend, colleague and senior fellow Chris Skidmore for inviting me today.
Chris and I once co-authored a little-known book together, 바카라 사이트˜Britannia Unchained바카라 사이트™.
While this was drafted in a completely different era 바카라 사이트“ before Brexit, net zero targets and COVID-19 바카라 사이트“ and the role of the state has invariably changed since바카라 사이트¦.
바카라 사이트¦there is one lesson that is still true today: the need to unleash the power of competition, innovation, and private enterprise within a free market economy.
From offshore wind to battery technology, the private sector has developed and deployed incredible technology that will change our lives for the better.
The way to decarbonise isn바카라 사이트™t through a planned economy, but through the British way: science, innovation powered on by free enterprise.
We understand the power of our treasured free-market economy to leverage private capital and unleash Britain바카라 사이트™s unique entrepreneurial spirit to grow new industries.
This is how we will deliver net zero by 2050 바카라 사이트“ working in partnership with business, science, and academia.
However, there is a more immediate issue the international community is grappling with.
In light of rising global energy prices, provoked by surging demand after COVID-19 as well as Russia바카라 사이트™s criminal invasion of Ukraine, there is a renewed focus by national governments on energy security 바카라 사이트“ and clean energy independence.
The wholesale price of gas on the European market has increased by 500% in recent months 바카라 사이트“ so much so that almost every renewable technology is now cheaper.
If it isn바카라 사이트™t clear enough already: net zero is the solution to the global gas crisis, not the cause.
Expensive gas is the problem. Cheap, clean, homegrown energy is the solution.
Transforming our energy system is no longer just about hitting net zero targets and tacking climate change 바카라 사이트“ as important as they are 바카라 사이트“ it is also about national security.
Putin바카라 사이트™s invasion of Ukraine has focused the minds of the international community on the urgent need to diversify away from Russian oil and gas and generate more power domestically.
And even those countries that are not physically dependent on Russian hydrocarbons - like the United Kingdom 바카라 사이트“ we are still vulnerable to prices that are dictated by global markets heavily influenced by Russia - ratcheting up costs for UK consumers.
For as long as we depend on oil and gas 바카라 사이트“ wherever it is from - we are all vulnerable to Putin바카라 사이트™s malign influence on global markets.
To diminish Putin바카라 사이트™s malign influence, we not only need to phase out Russian fossil fuels, but also look to domestic sources of energy too.
And with gas prices at record highs, and the price of renewable energy plummeting, we need to accelerate our transition away from expensive gas.
This week, the UK government will set out a new Energy Security Strategy to supercharge cheap renewables and new nuclear, while continuing support our North Sea oil and gas industry.
While international events give a new sense of urgency, the energy transition was already a priority for the UK.
We바카라 사이트™re not reinventing the wheel here.
The UK has always known that we need to decarbonise and generate more cheap, clean power at home to reduce our exposure to global gas markets we are unable to control.
We were the first major economy to legislate for net zero - a commitment Chris signed.
We바카라 사이트™ve also cut CO2 emissions further and faster than any other G7 country - and expanded renewable energy generation by 500% this decade.
Thanks to our competitive - soon to be annual - renewable energy auctions, the price of supporting offshore wind has plummeted by 70%, while production has rocketed.
We are going to replicate this success in other areas바카라 사이트¦like solar, tidal and hydrogen - the new super-fuel of tomorrow.
Importantly, however, we also need a reliable source of low carbon baseload when the sun doesn바카라 사이트™t shine, and the wind doesn바카라 사이트™t blow.
That has to be nuclear energy.
Most of Britain바카라 사이트™s nuclear fleet will be decommissioned this decade. We need to replace what we바카라 사이트™re losing and go further - from large-scale plants to Small Modular Reactors.
In this week바카라 사이트™s Energy Security Strategy, we바카라 사이트™ll reverse 30 years of drift and take the big decisions to generate more nuclear power.
However, the transition to clean, homegrown energy can바카라 사이트™t happen overnight. It remains the case that there will continue to be an ongoing demand for oil and gas over the coming decades while we transition to clean energy.
So in the meantime, we want to maximise domestic production in the North Sea production to protect jobs and reduce reliance on imports.
The Industrial Revolution began here in the UK before spreading to the US and the rest of the world.
We바카라 사이트™re on the cusp of another revolution바카라 사이트¦a green one. The countries that develop the tech of tomorrow will lead future global markets for decades to come.
If the West doesn바카라 사이트™t lead this global race, we will become even more exposed to forces we cannot control.
We would import even more energy and technology from other countries, and be vulnerable to their excessive price fluctuations.
Old industries that haven바카라 사이트™t innovated will disappear, jobs will be lost and the burden on the taxpayer will become excruciating.
We need to work together to lead this race for clean energy independence for our citizens.
So whether you바카라 사이트™re in Cambridge, Massachusetts or Cambridge, England바카라 사이트¦the question of how we meet our growing energy needs is a matter of great importance.
This transition will only be a success if bright people like yourselves take an interest in these issues.
So, thank you for listening today.