Energy Intensive Industries: Environment Protection and Renewable Energy

The Government recognises that high energy costs are a key challenge for energy intensive businesses and act as a barrier to investment in decarbonisation and cleaner manufacturing processes.

In the Modern Industrial Strategy, we announced the creation of a new British Industrial Competitiveness Scheme which will reduce electricity costs by c.£35-40/MWh up to 2030 and support around 10,000 businesses. This is alongside an existing package of measures including the British Industry Supercharger, to support competitiveness whilst encouraging investment in energy efficiency, decarbonisation and technical innovation.

The Government also provides business rates support for green technology. Eligible plant and machinery used in onsite renewable energy generation and storage, including rooftop solar panels, wind turbines and battery storage, are exempt from business rates until 31^st March 2035. A 100 per cent relief is also available for eligible low-carbon heat networks which have their own rates bill.

In addition, the Government’s Clean Power 2030 mission will help bring down electricity costs over the longer term by accelerating investment in clean domestic generation and related infrastructure, enabling energy intensive businesses to transition towards renewable energy and more environmentally-conscious manufacturing processes.