26/06/2026
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.
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Energy Spotlight
Decarbonising Industrial Heat: Opportunities, Challenges and the Legal Landscape
The decarbonisation of industrial heat is emerging as one of the defining challenges — and opportunities — of the UK's journey to net zero. Process heat demand in UK industry is estimated at approximately 170 TWh per year, accounting for almost 25% of the UK's total heat demand and roughly 11% of final energy demand. The industrial sector is the third highest-emitting sectors in the UK, representing 12% of total greenhouse gas emissions in 2024 (46.5 MtCO₂e). For industrial end-users, energy technology providers, project developers and investors operating in this space, the prize is significant — but so is the complexity. Getting this transition right is not only essential for meeting climate targets, but also for strengthening industrial resilience in the face of volatile global energy markets and increasingly vulnerable supply chains.
In our article Henry Mayman and Nathan Bradberry explore the challenges, opportunities and the policy landscape of this sector.
The intersection between Local Government Reorganisation and Heat Networks
There is a lot of change happening in local government, and the recent local elections are likely to lead to significant changes across the country. At the same time, a lot is changing in the heat network sector, so how do these changes intersect? Kirtpal Kaur-Aujla, Carrie Davies, and Gemma Glasspole recently conducted a webinar investigating this, which this article follows up on.
For Local Authorities in England, the forthcoming heat network zoning regulations are likely to lead to significant changes, including designation of local and/or regional authorities as “zone coordination bodies”. There are still questions about how heat network zoning will operate in England and we await the forthcoming regulations and supporting guidance with interest. However, it will be important for Authorities to prepare for the upcoming changes and the additional resourcing requirements these will bring and it is also important for those Authorities that have existing or proposed heat networks within their administrative boundaries to consider how these heat networks fit within future zones.
It is also important to consider the multiplicity of roles Local Authorities currently play in heat networks including as owners, landlords, operators and customer, as well as the statutory development and oversight role they may be expected to play when zoning is introduced
Learn more – visit our suite of free resources on our Points of Connection hub - our knowledge and expertise in district energy to support anyone operating in, or coming into, the sector.
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Data Centres
More than 100 UK datacentres plan to burn gas to generate electricity
Guardian 18 May 2026
“There’s 100GW of datacentre projects in the queue,” said Stuart Okin, the director of cyber regulation and AI at Ofgem.
Energy Sector Reform
Ofgem consultation: AI assurance in the energy sector
Ofgem 17 June 2026
Ofgem are seeking views on the role of AI assurance in the energy sector, including how systems can be tested, evaluated and governed.
National Grid 3 June 2026
National Grid has submitted a package of proposals to Ofgem under the “re-openers” process, seeking approval for strategic investment across its electricity transmission network to help deliver secure, affordable and cleaner energy for Britain.
Ofgem sets rules for 2028 to 2033 grid investment to meet growing electricity demand
Ofgem 21 May 2026
Ofgem has set out a challenging but fair rulebook for assessing investment plans and controlling costs for Britain’s regional and local electricity distribution grid into the 2030s.
Energy Independence Bill announced in King’s Speech
House of Lords 13 May 2026
On the 13th May 2026, the King's speech referred to energy independence as a long-term goal for the UK in light of the recent energy price shocks of the events in the Middle East. The speech outlined plans for an Energy Independence Bill.
View our article on this here.
Energy Efficiency
Government sets next target for long-term emissions reduction
Department for Energy Security and Net Zero 2 June 2026
The government has set out its proposed level for the seventh Carbon Budget, which sets a science-led target of ~87% emissions reduction in the period 2038 to 2042 – endorsed by the Environmental Audit Committee and the Climate Change Committee
Department for Environment, Food & Rural Affairs 2 June 2026
The Department for Environment, Food and Rural Affairs published a of biodiversity gain statements that set out the biodiversity net gain requirements for nationally significant infrastructure projects.
Nuclear
Nuclear Regulation Bill announced in King’s Speech
Prime Minister’s Office 13 May 2026
The Bill will take forward the recommendations of the Nuclear Regulatory Review to support British nuclear energy generation. It will overhaul existing regulation, embed a proportionate regulatory and legislative framework, and improve the co-ordination and speed of regulatory decision-making
Solar and Battery
Retailers discussing plans with UK government to sell plug-in solar panels
Department for Energy Security and Net Zero 16 June 2026
Bosses of some of Britain’s biggest retailers are discussing plans with the government to start selling plug-in solar panels as part of a drive to encourage more UK homes to generate their own electricity.
New proposals to cut bills with community batteries
Department for Energy Security and Net Zero 4 June 2026
A call for evidence launched today will seek to unlock barriers so shared battery storage can be rolled out across the UK, helping communities store locally generated renewable energy and pass on the savings to households.
UK Households continue to embrace solar power
Department for Energy Security and Net Zero 28 May 2026
New government data published today shows that 2025 was the strongest year on record for solar deployment, with 269,000 installations completed across the UK.
Wind
New offshore wind environmental protection powering homes
Department for Energy Security and Net Zero 21 May 2026
New reforms taking effect today will speed up offshore wind development while expanding targeted environmental compensation options to support nature recovery.
Related Insights
Local Authority View - May 2026
May 18 2026
This month's round up of local authority related news and views
Read More