Grant Shapps this week gave his first major interview since taking on the new role of Energy Security and Net Zero Secretary, sketching out plans to deliver on the UK’s climate goals while securing “the cheapest energy in Europe”.

Speaking to the Sunday Times, Shapps hinted that the government was working on ambitious plans to accelerate clean energy development through a range of policies, including fresh support for new nuclear projects, a bolder target for offshore wind capacity, and planning reforms to make it easier to install rooftop solar arrays on houses and business premises.

“My very simple objective is to create the economy with the cheapest wholesale electricity price by 2035,” Shapps told the paper. “That’s what I’m going to be all about. Let’s have Britain with the cheapest energy in Europe… The most successful economies in the world are the ones that have cheap energy prices.”

He stressed that the goal could be achieved while continuing to accelerate the UK’s decarbonisation efforts.

As such, he reiterated the Sunak administration’s commitment to developing new nuclear projects, even if he declined to fully endorse previous Prime Minister Boris Johnson’s goal to approve a new nuclear plant every year for the next eight years.

He said the creation of the new Department for Energy Security and Net Zero was “a pretty clear guide or indication” the government would be moving ahead with plans for a Great British Nuclear (GBN) agency to help identify new sites for nuclear power plants and support their development, adding that an announcement was likely in the coming weeks.

He also highlighted how the government was committed to securing private sector capital to deliver the new Sizewell C nuclear plant.

In addition, Shapps hinted strongly that the target to deliver 50GW of offshore wind capacity by 2030 could be upgraded further. “The reason I say that is I can already see 76GW in the pipeline,” he said. “It may be that some of those just don’t come off or the economics change. But I think the other thing that is happening is that the technology is becoming so much better.”

And he stressed that these new offshore wind projects provided “one of the cheapest ways to produce power”.

The interview also revealed that Shapps is working with Levelling Up Secretary Michael Gove to ease rules to allow more solar panels on roofs through permitted development rights, eradicating the need for planning permission on some larger installations. At the same time, the government is talking to grid operators about how to speed up grid connection times for solar projects and reaching out to corporates with large warehouses to explore how to accelerate the roll out of large rooftop solar projects.

And Shapps acknowledged the UK needed to respond to the multi-billion dollar package of green subsidies launched by the US last year, indicating that a complaint to the World Trade Organisation had not been ruled out while also revealing that ministers are holding cross-government talks on how best to attract green investment to the UK.

Funding announcements on new hydrogen projects, offshore wind infrastructure, and eco-friendly aviation fuel, as well as planning reforms and new measures to support the UK electric vehicle and battery industries are all said to be in the pipeline.

The interview came as trade body RenewableUK became the latest business group to call on the government to prioritise clean tech investment in its upcoming Spring Budget.

The group today published a report – titled Retaining the UK’s leadership in renewables – recalibrating policy in the midst of an energy crisis and increasing global competition – setting out a series of recommendations on how the UK can respond to revamped green industrial policies from the US and EU.

The report highlights how as part of the Inflation Reduction Act the US government is providing tax credits to supply chain companies to manufacture components for wind farms which are worth $120m for every new gigawatt of wind farm capacity. The EU is widely expected to respond with a similar package to drive investment in clean tech supply chains.

As such, the report warns that without urgent policy action the UK risks losing out on manufacturing opportunities in its own supply chain that would result in investment and jobs migrating overseas, despite the UK’s position as one of the world’s leading renewable energy markets.

The report sets out a series of policy recommendations, including proposals for the government to set a more ambitious overall budget and sustainable prices for renewable electricity in this year’s upcoming auction for clean power, which take account of the impact of inflation on the renewables sector.

It also reiterates long-standing calls for the government to speed up planning processes that can result in it taking up to five years to get approval to build an offshore wind farm and stresses that despite promised reforms it new onshore wind farms are still effectively banned in England. “Speeding up investment in new grid capacity is also vital, as some offshore wind developers are having to wait for more than 10 years to get a grid connection,” the report states.

In addition, it calls for the government to ramp up investment in key enabling infrastructure such as ports and introduce new tax incentives and reform capital allowances to encourage investment in the renewable energy supply chain.

“We’re urging the Chancellor to look carefully at the recommendations set out in this report ahead of his Spring Budget, as the renewable energy sector is facing a perfect storm this year, with inflation squeezing out already tight profit margins, and fierce international competition for investment, skills and supply chains,” said Ana Musat, executive director of policy at RenewableUK. “The US and the EU are in a race to offer incentives to clean energy investors, and the UK cannot take its leadership position for granted. A combination of fiscal measures and smart regulation will create a business environment which can boost Britain’s energy security, reduce consumers bills and tackle climate change at scale, enabling us to reach our net zero goal as fast as possible.”

The report follows a recent letter to Chancellor Jeremy Hunt from a coalition of energy industry trade bodies, including RenewableUK, which warned the UK’s long term economic competitiveness was at risk if the government failed to respond to the revamped green industrial strategies introduced in Washington and Brussels.

“Despite our industry’s commitment to the low carbon energy transition, we are concerned that there is no clear government plan to deliver green economic growth and continue attracting clean energy investment into the UK,” the letter stated. “At present, inflation, unfavourable exchange rates, and rising costs of raw materials and labour are pushing up prices across all sectors of the economy. Clean energy is no exception.”

It added that the “can no longer take its competitive advantage as a mature market for granted”. “The passage of the Inflation Reduction Act (IRA) in the US, the REPowerEU package and further interventions on state aid rules expected in the EU offer an attractive proposition for clean energy investors,” it said. “The IRA alone offers $216bn worth of tax credits to companies investing in clean energy and transport. By contrast, the UK has created an Energy Profits Levy with 91 per cent investment relief for oil and gas, but an Electricity Generators Levy with zero per cent relief for clean power generators.”