UK Unveils £30B Plan To Boost Clean Energy Sector

In a landmark move to reshape its industrial landscape, the UK government has unveiled an ambitious 10-year industrial strategy that aims to supercharge clean energy investment, revitalise advanced manufacturing, and position the country as a global leader in innovation and digital technologies. The sweeping strategy, announced on Monday, sets out a bold vision to double annual clean energy investment to over £30 billion by 2035 while simultaneously delivering lower electricity bills for businesses, boosting job creation, and enhancing energy security.

At the heart of the strategy is a £2.8 billion research and development (R&D) pledge over the next five years for advanced manufacturing. This funding is targeted at accelerating automation, digitisation, and commercialisation in key industrial sectors, aligning with the government’s broader goal of modernising the UK’s economic foundations through future-proof technologies.

Energy Secretary Ed Miliband described the plan as a transformative step forward, stating, “This government is doubling down on Britain’s clean power strengths as we build this new era of clean energy abundance, helping deliver good jobs, energy security and lower household bills.”

A central pillar of the new industrial roadmap is the Clean Energy Industries Sector Plan, which charts a path to over £30 billion per year in clean energy investment by 2035—more than twice the current levels. Since July alone, the UK has already attracted £40 billion in private investment into clean energy projects, highlighting growing confidence in Britain’s energy transition.

One of the key vehicles driving this momentum is Great British Energy, which will receive an additional £700 million in funding. This is on top of a previously announced £300 million commitment and will be used to develop domestic supply chains for technologies such as floating offshore wind platforms, electric cables, and hydrogen infrastructure. The combined £1.7 billion in funding—comprising government support, industry contributions, and Crown Estate co-investment—will bolster the UK’s ability to manufacture critical clean energy components at home.

CEO of Great British Energy, Dan McGrail, welcomed the new funds, saying, “Great British Energy will help the UK win the global race for clean energy jobs and growth. We are working closely with businesses to invest in strategic needs and get funding out fast.”

As part of its regional development focus, the government also announced plans to expand the Clean Industry Bonus—an incentive scheme designed to localise clean energy manufacturing. This expansion will channel fresh investment into coastal and industrial communities by supporting sectors like hydrogen and onshore wind.

The industrial strategy’s scope extends beyond energy and manufacturing, reflecting the government’s vision for a diversified and technologically advanced economy. In the life sciences sector, up to £600 million will be directed towards creating a Health Data Research Service, a secure, AI-ready health platform that aims to strengthen the UK’s digital healthcare infrastructure.

Similarly, the creative industries will benefit from a £150 million growth fund targeting the screen, music, and gaming sectors, with the goal of nurturing world-class content and exporting British culture globally. The professional and business services sector will see the rollout of new AI tools, mutual recognition of qualifications to support service exports, and the establishment of five new industry hubs to foster innovation and connectivity.

In digital and frontier technologies, the UK government is setting its sights high. The strategy outlines a push to place the UK among the top three global tech ecosystems. This includes targeted support for artificial intelligence, quantum computing, semiconductors, cybersecurity, and engineering biology—areas seen as critical for national resilience and global competitiveness in the years ahead.

The plan also embraces international collaboration, notably with the European Union. The UK intends to strengthen cooperation with the EU on energy and carbon pricing frameworks to reduce regulatory barriers and stimulate investment in large-scale North Sea projects. The government is also exploring participation in the EU’s internal electricity market, a move that could further integrate Britain’s energy sector with continental partners.

To support the integration of AI into the clean energy space, Lucy Yu, CEO of the Centre for Net Zero, has been appointed as the UK’s Clean Energy AI Champion. She will lead efforts to embed AI across the energy sector, ensuring that innovation drives efficiency, optimises grid management, and supports decarbonisation.

In unveiling the strategy, the government underscored its long-term ambition: to reindustrialise Britain in a sustainable and digitally empowered way. “Clean energy is the economic opportunity of the twenty-first century,” the government said in its statement. “This plan ensures that the revolution is built in Britain, bringing jobs and resilience to the heart of our economy.”

As global competition heats up in the race to lead the clean energy transition, the UK is staking its claim with bold investment, policy alignment, and a clear industrial identity rooted in innovation. In the words of Ed Miliband, “The UK’s pitch is clear – build it in Britain. Power the world.”