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The UK will face “blackouts” without building new gas power stations, ministers have claimed.

The government has said that while it will continue to move forward with its net zero targets and a focus on renewables, gas was needed as a “back-up” – with Prime Minister Rishi Sunak saying climate goals must be reached “in a sustainable way that doesn’t leave people without energy on a cloudy, windless day”.

Energy Secretary Claire Coutinho will outline the plans for new stations in a speech later today, which include a full review of the electricity market and changes to the law to make the plants ready convert to low-carbon alternatives.

But Greenpeace said the plan would make the country “more dependent on the very fossil fuel that sent our bills rocketing and the planet’s temperature soaring”.

Politics live: UK risks blackouts without new gas stations, minister will warn

Electricity demand is increasing as the UK electrifies things like heating and cars, and the population grows.

Officials have been reviewing how to make sure supply keeps up with demand, is reliable, and reaches the right areas of the country.

Today the Department for Energy Security and Net Zero said it was clear the UK would need new backup gas capacity to provide power that can be fired up on demand, on days when it isn’t windy or sunny enough to get electricity from renewables.

That’s also because some gas plants are due to retire in the coming years.

The commitment to renewed unabated gas was long expected, and the energy industry welcomed the reassurance on how to direct its investment.

But some analysts warned extra gas is the wrong solution to the question of how to meet increasing demand and provide flexibility, and said it was a reflection of failure in other areas of energy security policy.

‘We must be realistic’

In a speech today at Chatham House, Ms Coutinho is expected to say: “There are no easy solutions in energy, only trade-offs.

“And so, as we continue to move towards clean energy, we must be realistic.”

In a statement overnight, Mr Sunak said: “I will not gamble with our energy security. I will make the tough decisions so that no matter what scenario we face, we can always power Britain from Britain.”

Labour’s shadow energy secretary, Ed Miliband, said the plans were only necessary because of “fourteen years of failed Conservative energy policy”, including an effective ban on onshore wind, slow progress on energy efficiency and last year’s failed offshore wind auction.

However, he added that if old capacity needs replacing, Labour would be open to some new gas power generation, too.

Mr Miliband said: “Of course we need to replace retiring gas-fired stations as part of a decarbonised power system, which will include carbon capture and hydrogen playing a limited backup role in the system.”

The government argues the move is in line with its climate commitments to cut emissions from fossil fuels because although gas capacity will increase, overall running hours will reduce, as the gas power would not be not firing all the time, but could be scaled up and down as a backup.

‘The government has missed opportunities’

Juliet Phillips, UK energy programme lead at thinktank E3G, said the UK has been a “clean power leader”, given its “continued exponential growth in renewables”.

But the government’s “policy failures” and “missed opportunities” in offshore wind and grid connections left it having to announce new gas power today.

New gas capacity “must come with strict conditions that new plants can be retrofitted with green hydrogen or carbon capture and storage in the future,” she said.

The government wants to boost gas capacity by tweaking capacity market rules, with the costs being covered by billpayers – who would foot the bill for any backup capacity.

It is also considering broadening existing rules for new plants to be able to convert to lower-carbon alternatives, such as by adding carbon capture technology to catch and store emissions.

However, it did not confirm how much new gas capacity was needed.

Kisha Couchman, deputy director at Energy UK, said the power system is undergoing “significant change” as the sources diversify and flexibility becomes more important.

She added: “The challenge is to bring forward changes to support this aim while also providing the certainty essential to bring forward long-term investment – so it’s also right to look at the role that existing mechanisms can play.”

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Need for ‘no regrets’ options

Climate and energy thinktank ECIU said there are cheaper, more climate-friendly forms of backup power that could be used instead, such as using EVs to give power back to the grid and battery storage.

The announcement comes as the government gives an update on its consultation for the Review of Electricity Market Arrangements (REMA).

It has ditched a previous proposal to stop linking electricity prices with gas prices.

It is finessing one proposal to bring in regional pricing of wholesale electricity, which could incentivise industry to build in areas where electricity is cheaper, and attract new power projects where demand is greatest.

However, critics have raised concerns over the fairness of the proposal, and ministers have not yet decided if households would be subject to a “postcode lottery” of different costs in different areas.

Another option for continued regional pricing remains on the table.

Guy Newey, CEO at Energy Systems Catapult, said the only way to green the electricity system “in time and without pushing up bills is to move to a market that reflects local supply and demand”.

“It is an essential step forward to see government proposing stronger locational signals in the wholesale market,” he said.

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Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

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Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Brazil scraps crypto tax exemption for small traders, enforces flat 17.5% rate across all gains, including self-custody and offshore holdings.

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A scrambled G7 agenda as world leaders scramble to de-escalate the Israel-Iran conflict

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A scrambled G7 agenda as world leaders scramble to de-escalate the Israel-Iran conflict

The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.

Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.

Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.

But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.

Canadian Prime Minister Mark Carney is greeted by President Donald Trump as he arrives at the West Wing of the White House, Tuesday, May 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
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Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP

Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.

All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.

Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.

More on G7 Summit

“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”

Prime Minister Sir Keir Starmer (right) is greeted by Prime Minister of Canada Mark Carney as he arrives at Rideau Cottage in Ottawa
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Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7

But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.

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Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.

With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.

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Bitcoin must upgrade or fall victim to quantum computing in 5 years

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Bitcoin must upgrade or fall victim to quantum computing in 5 years

Bitcoin must upgrade or fall victim to quantum computing in 5 years

Unless Bitcoin upgrades its core cryptography in the next five years, the trust it has built over 16 years could be wiped out by a single quantum attack. Urgent upgrades are needed to protect the world’s leading cryptocurrency.

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