We must end our dependency on Russia’s gas and embrace renewable opportunities
Our energy bills are up by 54 per cent this year. It’s not just gas – the cost of fuel, food, and furniture is ticking up too. The Bank of England now expects inflation to surge past 7 per cent by the end of this year. That’s going to price many of us out of our current lives. What’s driving it? Just look around the world.
Russia’s threats to Ukraine are a double hit. The threat of war brings uncertainty and stockpiling drives up prices. For commodities like energy that’s pushing up prices around the world. Ukraine also grows over 10 percent of the world’s wheat and maize – the staple ingredients of many foods.
As long as Russia continues to threaten invasion of Ukraine, energy costs are going to remain high and wheat prices will be driven higher. The price of oil is on the cusp of $100 per barrel for the first time since 2014.
In one nightmare scenario, things could get even worse if Putin retaliates against Western sanctions by turning off the gas taps. A frantic search for alternatives to Russian gas would bid up global oil and gas prices even higher.
Keeping Europeans warm and lit would be tough and a painful lesson about the pitfalls of relying on dictators. Putin may still withdraw his troops. But Russia’s actions should be a wake-up call. Dependence on authoritarian regimes undermines our freedoms.
We need to invest more in nuclear and renewables at home as we phase out oil and coal, to ensure our lifestyle isn’t dependent on Putin’s war style.
Britain has more options than ever before. Innovation is providing answers. We now have access to clean, renewable energy which is also low cost. Solar power is cheaper than we predicted it would be a decade ago. Wind power generated half of the UK’s energy yesterday. And hydrogen – almost undreamed of decades ago – could now fuel homes and vehicles.
We’re also securing the sites for the UK’s first small modular nuclear reactors. Small nuclear reactors require less upfront cost and create more flexibility in terms of location – providing much needed reliability to underpin renewables in Britain’s energy grid. And they’re much quicker to build than projects like Hinkley Point C.
Backing our own energy sector also creates opportunities. Aberdeen is looking to become the world’s first hydrogen-powered city, inviting millions in investment. Another new wind turbine factory in Teesside is set to create 750 jobs. Supply chains closer to home are better for the planet too, reducing the lifetime emissions of new tech.
We even saw an 11-second glimpse of the future in Oxfordshire last week. A successful nuclear fusion experiment was proof that squeezing two forms of hydrogen one day might be able to generate limitless energy. Power by fusion produces almost no carbon emissions and a tiny amount of waste.
We might be a couple of decades off scalable nuclear fusion, but it’s proof of the rewards if we keep investing in innovation. We’ve just heard how DeepMind used machine learning to control the fusion process. The prize is a clean, green and independent future.
We have a freedom few others enjoy. With a radical shift to our own energy we can free ourselves from a tyrant’s grasp and help others do the same. That won’t fight inflation today but it will help keep us safe from our savings being eaten away in future. The decisions we make now will protect our prosperity and freedom.