Chris O’Shea: Investing in a green energy transition

The next few years will define Britain’s energy system for a generation. If the zeitgeist of the last parliament was “levelling up”, the priority for this one should be “powering up”.

The government’s ambition is to turn the UK into a clean energy superpower, with stable bills, secure energy and decarbonised homes. To achieve this, we need the private and public sectors working together. This government can do a lot to unlock investment and companies such as Centrica stand ready to invest — creating hundreds of thousands of well-paid jobs.

Our green-focused growth and investment strategy will see us materially increase investment over the coming years, building to an annual capital investment of £600m-£800m up to 2028. That equates to between £3bn and £4bn over a five year period.

You can already see how this investment is taking shape. In March 2024, Centrica acquired development rights for the construction of a 16MW solar farm and 3MW battery storage plant near Winterborne Whitechurch and in June, Centrica announced a strategic partnership and £70m investment in Highview Power and its first clean liquid air energy storage project in Carrington, Manchester.

These types of energy storage projects are critical for decarbonisation and to protect the UK against shortages and painful price spikes. At Centrica we provide half of Britain’s gas storage at our Rough facility. We’re ready to invest billions to double its capacity, eventually becoming the world’s largest hydrogen storage facility. All we need is an extension of an existing regulatory model. With higher capacity, Rough could have saved UK consumers £5.5 billion in the past two years.

We’re also ready to invest in Morecambe. This huge gas field is almost depleted and could store up to one gigatonne of carbon — equivalent to 10 per cent of the UK’s CO2 emissions every year for 40 years — if we get the regulatory framework necessary to repurpose this critical national asset.

With the right framework, this government will unlock billions of pounds of investment for projects like this without the need for any taxpayer money. And we’re happy to partner with Great British Energy on these projects.

We need to make sure the costs of the energy transition do not fall on the shoulders of those who can least afford them. British Gas has already committed £140 million to support our customers but we believe putting an end to standing charges, introducing a social tariff and ending the energy postcode lottery by having one price for gas and electricity will make the energy market greener and fairer.

Now is the time for decisive action, with government setting the framework and businesses providing finance and expertise. Together we will unlock clean energy, boost energy security and ensure taxpayers, billpayers and communities reap the benefits of clean, secure, home-grown energy for decades to come. It is early days but I am confident we will deliver this together.

This article has been adapted from an original editorial published in The Times