The Antics at the Department for Energy Security and Net Zero (DESNZ)
Nuclear ministers being dismissed from DESNZ due to financial review posing a risk to net zero objectives
The department faced a double blow after losing two ministers within a month, a setback for Energy Secretary Ed Miliband. Philip Hunt, the nuclear minister, bowed out less than a year into his role, seeking more family time. Margaret Curran followed soon after, citing health issues.
These resignations come at a critical juncture, with the net zero mission on the line following the upcoming spending review. The swift exits may not help the DESNZ ministers bargain for a fair share amidst looming budget cuts.
The environmentalists within Whitehall are rattled, fearing the clean power agenda may get buried under other pressing matters and louder voices. The cabinet has reportedly been advised by the Treasury to be "ruthless" in finding cost-saving measures. As the chancellor puts it, "it is important to have control of the public finances."
DESNZ's primary goals are to attain clean power by 2030 and reach net zero by 2050. The nuclear portfolio, often dubbed the "easier" option, is not a top priority for Miliband and moves at a slow, snail's pace, with nuclear power plants taking years to construct, even without major delays and soaring costs.
However, the nuclear energy sector might see some movement soon. The likely winners of the multi-billion pound contract for small modular reactors, or "mini nukes," are set to be unveiled ahead of the spending review. This surge in nuclear energy policy decisions is a direct result of the spending review, forcing the government's hand. However, the Treasury has long been skeptical of nuclear due to its high costs.
Meanwhile, Miliband's pet projects, particularly the £13.2bn warm homes plan, face uncertainty. Rachel Reeves was contemplating scaling back this initiative, although other sources claim it remains intact. If the warm homes plan is axed, it could jeopardize the entire clean power 2030 mission, potentially damaging Miliband's reputation and that of his cabinet.
The warm homes plan targets improving insulation and low-carbon heating installations in homes, promising to reduce household bills for millions. Yet, the scheme isn't without criticism. Campagliaanti have argued that reinstating winter fuel payments offers little benefit if homes aren't adequately insulated and energy-efficient.
The plan is also expected to spawn over 4 million jobs as the government aspires to retrain workers to insulate and retrofit homes. However, speculation swirls that GB Energy, a publicly-owned energy company, may receive reduced funding. GB Energy is projected to receive £8.3bn in public investment by the end of the decade, expected to attract substantial additional investment. The interim CEO of GB Energy has assured POLITICO that his mandate remains secure.
Miliband has reportedly managed to protect some of his significant initiatives, but sacrifices must be made in the upcoming spending review, with defense, healthcare, and welfare sectors seeing significant funding increases, while departments like those responsible for the environment (DEFRA) face funding cuts.
- The upcoming spending review, a key event in general-news, could affect the department's finance and politics, potentially threatening the net zero mission and the pet projects of Energy Secretary Ed Miliband.
- The nuclear energy sector, a crucial part of the politics and economy, might see some movement with the impending announcements of the winners for the multi-billion pound contract for small modular reactors, which could impact finance decisions at the Department for Energy Security and Net Zero (DESNZ).
