31/07/2026
Earlier this month, the Government published its first-year update on the UK's Modern Industrial Strategy. The Modern Industrial Strategy established a 10-year roadmap to drive both micro and macro economic growth, and this update provides a useful indication of how policy makers intend to support investment in the UK's energy transition over the coming decade.
For renewable energy developers, infrastructure investors, utilities and supply chain participants, the report offers more than a progress update. It signals continued Government commitment to tackling structural barriers including grid access, planning delays and supply chain capacity.
Investment signals remain strong
More than £100 billion of private investment has been announced across the UK's Clean Energy Industries since July 2024, while deployment investment increased significantly. Key initiatives include the £1 billion Energy Engineered in the UK programme, record offshore wind procurement through Allocation Round 7, support for hydrogen, CCUS, heat pumps and electricity networks, and targeted supply chain funding.
What does this mean for renewable energy businesses?
The report demonstrates that clean energy policy is increasingly being used as an industrial growth tool. Developers and investors should be assessing how these reforms affect project timelines, financing assumptions, procurement strategies and regulatory risk allocation.
Key points identified in the report include:
Grid bottlenecks
Connection reform remains one of the most significant developments for the renewable energy sector. Project readiness and strategic importance are increasingly influencing connection priorities. Developers should continue to review network agreements, milestones and project delivery assumptions.
Planning reform
The Planning and Infrastructure Act reforms are intended to accelerate nationally significant infrastructure delivery and reduce development risk. For large renewable generation, transmission and storage projects, improved planning certainty may strengthen project bankability.
Increased opportunities for public sector participation
Great British Energy and the National Wealth Fund are expected to play an increasingly important role in unlocking private capital investment, particularly for emerging technologies including floating offshore wind, hydrogen and long-duration storage.
Supply chain requirements are becoming more important
The Government's emphasis on UK manufacturing, energy security and supply chain resilience means businesses should anticipate greater scrutiny of local content commitments and wider economic benefits. Government support includes the allocation of £204 million through the Clean Industry Bonus to support offshore wind supply chain investment. Looking ahead, the Government plans to expand the Clean Industry Bonus to onshore wind from Allocation Round 9 in 2027, extending its role in attracting investment, supporting UK businesses and creating high-quality jobs across clean energy industries.
Conclusion
The first year of the Modern Industrial Strategy demonstrates that clean energy remains central to the Government's growth agenda. While challenges remain, the combination of planning reform, grid modernisation, supply chain support and public investment has the potential to accelerate deployment of renewable energy infrastructure and create substantial opportunities for developers, investors and energy businesses over the coming decade.
If you would like to discuss any of the upcoming changes further, please do get in contact with our Energy and Resource Management team for more details.
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