Another week, another load of news. So, where to start?
The government has continued making moves around planning to lay the foundations for the UK’s energy future, and now says it has paved the way for more nuclear power plants to be approved across England and Wales, promising thousands of new highly skilled jobs and clean, secure, affordable energy for working people.
Small Modular Reactors will now be included in planning rules for the first time, providing flexibility to co-locate them with energy intensive industrial sites, including AI data centres. The government has also announced the previous restriction for nuclear sites to only be built in eight approved sites has been scrapped, opening up the whole of England and Wales for them to be developed – though nuclear reactor locations will still be subject to robust criteria, such as restrictions near densely populated areas and military activity, alongside community engagement and high environmental standards.
Projects will no longer be ‘timed out’ with the expiry date on nuclear planning rules removed, allowing for long-term planning, and a Nuclear Regulatory Taskforce is to be launched, striving to spearhead improvements to regulations, ensuring more companies can build nuclear projects in the UK.
RenewableUK’s focus has been on another key technology – or another two – looking at how reforming the planning system and rules overseeing financial support mechanisms can encourage more battery and green hydrogen projects to co-located with offshore wind.
Storage is vital to providing the UK’s energy system with greater flexibility, with batteries – offering short or long-term power – and green hydrogen – which can be stored and used when required – carrying the potential to make a big impact on the UK’s energy security. However, as per RenewableUK’s report, just 3MW of operational battery storage capacity is co-located with offshore wind in UK waters today, but with a further 600MW having been consented to go ahead, and several developers looking at opportunities for co-location with green hydrogen, it is seeking to remove challenges and ensure as many battery storage and green hydrogen projects as possible can be built next to offshore windfarms.
Their recommendations include reforming rules that restrict owners of offshore transmission cables and electricity substations from entering the market; reforming the Contracts for Difference (CfD) auctions to encourage the co-location of energy storage and offshore wind; and building a network of pipelines to transport green hydrogen produced using electricity from offshore wind to where it is needed.
The government has also been warned of a potential “cliff edge” of investment in solar and battery systems beyond 2030, risking up to £26 billion and higher energy bills as a result. Leading a group of 10 organisations, Solar Energy UK has written to Energy Security and Net Zero Secretary, Ed Miliband, explaining that the Clean Power 2030 Actin Plan risks stifling investment in ground-mounted photovoltaics and all but blocking the development of battery energy systems beyond the end of this decade with 2035 caps.
The end of 2024 saw solar generation capacity estimated to be 20.2GW, with an annex in the Clean Power Action Plan tipping it to hit 47GW by 2030, with an additional 9-10GW of systems under 5MW that will be built mostly on rooftops. An additional 22.4GW of systems over 5MW is then anticipated for 2035, marking a slowdown in deployment. The story is similar for battery energy storage systems, with 27.1GW expected to be online by that time, followed by just 1.6GW by 2035. The letter warns the government developers working on projects with connection offers for 2031, 2032 and 2033 are facing the prospect of being told their projects are surplus to requirements.
While the Strategic Spatial Energy Plan is anticipated to see the 2035 targets replaced towards the end of 2026, with grid connection offers issued in the third quarter of 2027, there would be “too little time for consenting, procurement and construction or the period to 2035” said the letter. This means an investment hiatus now and a hiatus of projects connecting in the early 2030s.
Also in the news:
Government eyes new plans for cheaper bills and warmer homes: The government has launched a consultation seeking views from tenants and landlords on proposals to boost living standards in the private rented sector, including requiring all private landlords to meet EPC C in their properties.
Full GB Energy impact could take some time: GB Energy Chair, Jürgen Maier, talking with Sky News, has admitted it could take 20 years for the company to realise a previously touted 1,000 jobs, with 200-300 likely to be created over the next five years. Bills will also likely take some time to come down.
Swinney criticises UK government on GB Energy pledges: The above led First Minister, John Swinney, to accuse the UK government of “hoodwinking the public” by promising something GB Energy is “not able to deliver”, even though he does support steps taken by GB Energy so far.
UK told decarbonising economy is affordable: DNV has forecast the UK to fall short in its net zero quest for 2050, with emissions dropping by 82% on 1990 levels, but stressed decarbonising the UK is affordable and could see household energy costs drop by almost 40% on 2021 levels for consumers.
Chamber urges government to back domestic oil and gas: Aberdeen & Grampian Chamber of Commerce has urged the UK government to reduce the windfall tax on North Sea oil and gas producers as a key first step towards greater domestic energy security.
Relaunched Net Zero Council sets out priorities: Leaders from major businesses, civil society and local authorities have come together through the relaunched Net Zero Council and set out their priorities for 2025-26, including supporting the development and delivery of sector roadmaps.
Government unveils vision for England’s land: The government has launched a consultation as it develops its vision for land use in England, looking to build a toolkit to support decision making and inform discussion on how to guarantee food security, support development and achieve nature and climate targets. It will run until 11:59PM on 25 April 2025.
BBC’s Panorama explores UK’s race to go green: BBC’s Panorama has investigated the UK’s drive to net zero, visiting the clean energy projects being developed in pursuit of 2030 energy goals across the country, as well as the people “taking sides in the battle over rewiring the country”.
Committee praises East Anglia’s role in UK energy future: The Energy Security and Net Zero Committee has visited key energy projects in the East of England and described the progress being made as “impressive”, with projects in development set to create jobs and deliver lower electricity bills.
Greater Manchester eyes UK’s first carbon neutral transport network: Transport for Greater Manchester has launched a tender for a long-term deal that will see trams powered by 100% renewable energy from a newly constructed solar or wind farm as it eyes the UK’s first carbon neutral transport network. It can be viewed here.
UK backing for innovative energy projects for Ukraine: The UK will invest £17 million in innovative energy projects to support the recovery and future sustainability of Ukraine’s energy system through the second round of InnovateUkraine, launching in mid-March.
