Miliband to Accelerate Clean Energy Push Amid Middle East Energy Crisis

Ed Miliband will double down on Labour's commitment to net zero in the face of the Middle East conflict this week, insisting that as fossil fuel prices soar "the era of clean energy security must come of age". The energy secretary is set to announce a package of new policies in a speech on Tuesday in response to an expected energy crisis prompted by Donald Trump's war with Iran. These will include speeding up the warm homes plan to encourage the rapid take-up of solar panels and electric vehicles; expanding the use of solar on public land; and delinking gas and electricity prices, to cut consumers' bills. "As we face the second global energy shock in less than five years, the lesson for our country is clear; the era of fossil fuel security is over, and the era of clean energy security must come of age," he is expected to say. Oil prices plunged on Friday amid claims that the key maritime choke point of the strait of Hormuz was reopening – but those hopes were dashed over the weekend, with Iran insisting it would remain under "strict control". The oil price was poised to rise about 4% on Monday, reversing some of the tumble in the previous session. Ever since the onset of the Iran war resulted in oil prices soaring above $100 a barrel in March, Miliband has come under pressure, including from the Conservatives and Reform, to ramp up oil and gas drilling in the North Sea. In response, he is expected to use Tuesday's speech to hit back at those who are "retreating to the comfort of false solutions". But he will dodge for now the controversial question of whether to allow drilling in the Jackdaw and Rosebank fields, for which the licensing process had already been set in motion by the Conservatives. "The North Sea is an important resource for our country which we will continue to use for decades to come," he is expected to say. "I do not agree with those who say we should 'turn off the taps' overnight. But nor do I agree with those who suggest that somehow 'drilling every last drop' will take a penny off bills or give us energy security. You can't solve a fossil fuel crisis by doubling down on fossil fuels." Government sources insist the process of deciding whether these fields can be exploited is "ongoing". Ministers are also exploring the use of "tie-back" arrangements, under which more extraction could be allowed next to existing fields. Rachel Reeves said in Washington last week: "We are looking at what we can do to exploit more of our resources in the North Sea through tie-backs," describing this as "the quickest way to bring on stream more oil and gas". However, Miliband will stress that the broader thrust of government energy policy remains to accelerate the shift away from fossil fuels. Speaking at a conference organised by the thinktank the Good Growth Foundation, Miliband will argue that it would be "completely irresponsible" to carry on with business as usual in the face of the energy shock – particularly since there is now "a compelling alternative in the form of clean energy. An alternative that cannot be disrupted by foreign wars because it comes from our own wind, sun and nuclear resources. That isn't subject to global price shocks because it is locked in at stable prices here at home." He will point to the fact that UK consumers' demand for clean energy technologies has already increased rapidly since the onset of the conflict in the Middle East. "Octopus report a 50% rise in solar panel sales and a 50% rise in heat pump sales since the war began. And March was the best month ever for EV sales in the UK," he will say, adding: "Contrary to an extraordinary amount of misinformation, before this crisis it was already cheaper to run an EV than a petrol or diesel car, and, with the right tariff, cheaper to run a heat pump than a gas boiler." It is unclear how the government intends to go about "delinking" electricity prices from the cost of gas generation, but options are expected to include striking new better-value contracts for legacy green energy projects. At the moment, the wholesale price of electricity is set by the most costly generation at a given time, which is often gas-fired power stations – a system also in place across many other European countries. In the short-term, the chancellor is understood to be considering raising the electricity generator levy – in effect a windfall tax on low-carbon energy producers – and using the proceeds to cushion the blow for consumers. Domestic energy bills are fixed until July by the price cap imposed by the regulator for Great Britain, Ofgem, but are then expected to rise by about 12%, to £1,836 a year for a typical household – although ministers have stressed that energy usage tends to be lower over the summer months.