26/06/2025
Welcome to our June Energy Matters Newsletter
The energy sector is a rapidly changing market with daily updates on technological advances, regulatory reviews, policy updates, funding decisions. In each edition of our Energy Matters Newsletter, we aim to provide a user-friendly, summary update of some of the key issues we are seeing across the renewable energy and resource management sectors.
If you would like to discuss any of the issues raised, please contact a member of our energy team.
Energy Spotlight
There has been a plethora of Government strategies this month. A number of them had implications for the energy sector including:
Spending Review
There was a great deal of media attention of the highly anticipated Government Spending Review this month. Key announcements for the energy sector included:
- £13.2 billion for the Warm Homes Plan
- £27.8 billion capitalisation for the National Wealth Fund to support green energy, advanced manufacturing, AI, and regional transport
- £300 million for offshore wind supply chain development
- £9.4 billion to the development of carbon capture utilisation and storage (CCUS) projects
- £14.2 billion investment to build Sizewell C nuclear plant, the first state backed nuclear power station since 1988
- £2.5 billion for nuclear fusion
- £2.5 billion for Rolls-Royce SMR to build small modular nuclear reactors
- £8.3 billion into Great British Energy and Great British Energy–Nuclear to invest into homegrown clean power
- £13.9 billion CDEL for the Nuclear Decommissioning Authority (NDA)
- The Department for Energy and Net Zero has committed to delivering at least 5% savings and efficiencies
UK 10 Year Infrastructure Strategy
Also this month the Government announced its 10 year UK infrastructure strategy to set out its long-term plan for economic, housing and social infrastructure. The strategy reinforced the government’s mission “to make the UK a clean energy superpower by delivering clean power by 2030 and accelerating to net zero” (Gov.uk) – and as such included a number of key investments including:
- operational reforms of the planning system to support major infrastructure
- prioritisation of energy projects in the grid connection queue based on strategic and system plans, including the Clean Power 2030 Action Plan
- £9.4 billion investment in Carbon Capture Usage and Storage (CCUS) (see above) to maximise deployment to fill the storage capacity of the East Coast and HyNet Clusters and support the Acorn and Viking clusters through development funding
- providing over £500m for hydrogen infrastructure to enable the develop the first regional hydrogen transport
- investment in one of Europe’s first Small Modular Reactor programmes (alongside Sizewell C see above)
- providing £2.6 billion capital investment to decarbonise transport from 2026-27 to 2029-30 to continue to support the rollout of electric vehicles and the required charging infrastructure, as well as encouraging innovation in hard to abate sectors like maritime and aviation
- Decarbonising the waste sector: transitioning to a circular economy, reducing our reliance on landfill and incineration, and ensuring that new energy from waste plants are carbon capture ready
UK Infrastructure: A 10 Year Strategy - GOV.UK
Clean Energy Industries Sector Plan
Finally, earlier this week the Government published the Clean Energy Industries Sector Plan “to ensure the clean energy revolution is built in Britain” (Gov.uk). It was produced in collaboration with industry, trade unions and workers from various regions.
It sets out a vision for the UK to be a global leader in Clean Energy Industries. By 2035 it aims for the UK to:
- Be the most attractive place in Europe to invest in Clean Energy Industries.
- Have grown exports in all frontier Clean Energy Industries.
- Have created hundreds of thousands of good quality jobs across the country.
- Have driven higher domestic commercialisation of evolving clean energy technologies.
- Have secured more resilient and robust supply chains.
The Plan aims to achieve this by:
- Maximising job opportunities in the UK in the clean energy economy.
- Doubling investment to £30 billion/year in our “frontier Clean Energy Industries where we have the greatest growth potential” (Gov.uk). Named as: Wind (Onshore, Offshore and Floating Offshore), Nuclear Fission, Fusion Energy, Carbon Capture Usage and Storage (CCUS) including Greenhouse Gas Removals (GGRs), Hydrogen, and Heat Pumps.
- Offering additional Contracts for Difference recent for investments in manufacturing in coastal and energy communities and in cleaner supply chains
- Providing continued support of solar, Bioenergy, Storage (including Long Duration Energy Storage) heat networks, and smart technologies.
- Supporting other Sector Plans include other key green technologies beyond Clean Energy Industries - electric vehicles and battery technologies in Advanced Manufacturing, climate technologies within Digital and Technologies, green services in Professional and Business Services, and sustainable finance within Financial Services.
- Centre for Net Zero CEO and founder Lucy Yu has been appointed as the government’s Clean Energy AI Champion. Her role will involve promoting the use of AI within the UK’s clean energy sector to accelerate the transition to net zero.
Clean Energy Industries Sector Plan - GOV.UK
Quick Links
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Carbon Capture Storage / Usage
Acorn carbon capture project to get £200m
BBC News 12 July 2025
UK Energy Secretary Ed Miliband has confirmed that £200m will be provided to progress the Acorn Carbon Capture and Storage (CCS) scheme in Aberdeenshire.
Electric Vehicle Infrastructure
Government cuts red tape to make it easier, quicker and cheaper to switch to Electric Vehicles
Department for Transport 29 May 2025
Drivers no longer need to submit planning applications to install electric vehicle chargepoints, helping them save up to £1,100 a year.
Energy Efficiency
Centrica reach £20bn gas deal with Norway’s state energy company Equinor
Centrica 5 June 2025
The new deal will see Centrica take delivery of five billion cubic meters of gas per year to 2035. The contract also allows for natural gas sales to be replaced with hydrogen in the future.
Government in danger of missing clean power target, warns Lords Committee
UK Parliament 4 June 2025
The House of Lords Industry and Regulators Committee has warned the Government that unless it drastically steps up the scale and pace of building more energy generation and network infrastructure it is in danger of missing its clean power target of decarbonising the electricity system by at least 95% by 2030.
Retrofitting homes for net zero: First Report of Session 2024-25
UK Parliament 22 May 2025
An Energy Security and Net Zero Committee report investigates the Government’s plans to retrofit homes in line with the UK’s legally-binding net zero commitment, ahead of the publication of its Warm Homes Plan.
New energy upgrades for public buildings to save taxpayers money
Department for Energy Security and Net Zero 15 May 2025
Pupils at schools, residents at care homes, and users of community centres will all be given a boost today, as the government allocates funding to help cut energy bills for public buildings in the years to come.
Energy Sector Reform
Department for Energy Security and Net Zero 2 June 2025
Consultation response from the government on proposed changes to the Capacity Market to modernise Capacity Market Rules and improve the participation and delivery assurance of consumer-led flexibility.
Energy price cap will fall by 7% from July
Ofgem 23 May 2025
Energy regulator Ofgem has) announced a 7% reduction of the energy price cap for the period covering July to September 2025.
Great British Energy Bill receives royal assent
Department for Energy Security and Net Zero 15 May 2025
Great British Energy Bill legislation passes through Parliament.
Hydrogen
£500m boost for hydrogen to create thousands of British jobs
Department for Energy Security and Net Zero 13 June 2025
Thousands of clean energy jobs will be created in Britain’s industrial heartlands as the government confirms over £500 million for hydrogen infrastructure.
Nuclear
£2.5 billion for world-first prototype fusion energy plant
Department for Energy Security and Net Zero 12 June 2025
A record £2.5 billion of additional funding has been announced this week by the Rt Hon Rachel Reeves, Chancellor of the Exchequer, to support the development of the world’s first fusion power plant.
Energy Minister asks NDA to explore clean energy at Moorside
Department for Energy Security and Net Zero 10 June 2025
Energy Minister Michael Shanks asks the Nuclear Decommissioning Authority to explore clean energy at Moorside.
Solar and Battery
Government confirms solar panels to be default on new builds
Department for Energy and Security and Net Zero 6 June 2025
New homeowners stand to benefit from rooftop solar and cheaper bills, with the Future Homes Standard being published this Autumn.
Wind
Offshore Energies UK: Offshore Wind Insight 2025
Offshore Energies UK 28 May 2025
This report provides a detailed analysis of the UK’s offshore wind market, highlighting the investment, policy and infrastructure changes needed to deliver 50 GW of offshore wind capacity by 2030.
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