Why 2025 will be a crucial year for energy delivery

Late last year the Government outlined how it planned to achieve clean power in the UK’s electricity grid by 2030, bringing forward the target from 2035.

This means that all the additional work needed to provide alternative power sources will be concertinaed into the next five years.

The Clean Power 2030 Action Plan detailed how much additional energy would be needed from alternative sources, including wind, solar and nuclear, as well as how much additional battery storage would be required to meet its own clean power goals by 2030, something it believes is needed in order for the UK to achieve net zero by 2050.

The key highlights from the report include:

  • Outlining the need for a large increase in battery storage in the coming five years. There is currently 4.5GW capacity in the UK, which needs to rise to between 23 and 27GW by 2030
battery storage dial - clean power 2030 action plan
  • In order to achieve this uplift, the Government said that the delivery of grid connections needs to speed up – and that the National Energy System Operator (NESO) and Ofgem will work together to do this
  • It also said that grid-scale battery storage could get a special mention in future planning reforms.
  • The report also highlighted that getting planning for electricity substations (needed for battery storage units, as well as data centres, and all properties) was currently slow, and that it will consult next year on opportunities to provide further flexibilities on consenting of electricity substations
  • The Government reiterated that it wanted to augment delivery of nuclear power, although it acknowledged that the policy of the Scottish Government was not to support new nuclear developments in Scotland
  • Nuclear needs will remain roughly the same in terms of GW generated – but will need new sources as old power stations are decommissioned
installed capacity in 2030 - clean power 2030 action plan
  • Final decisions on Sizewell C and the Great British Nuclear-led Small Modular Reactor (SMR)  programme will be taken at the Spending Review in late Spring this year, but a separate announcement from the Government in mid-November said that four companies had progressed to a shortlist to design and develop SMRs for the UK: GE Hitachi (US/Japan), Holtec (US), Rolls Royce SMR (UK) and Westinghouse (US). This programme could deliver operational SMRs by mid-2030s.

In November, NESO advised the Government that its clean power mission is achievable by 2030, but only with reforms to planning, grid connections and electricity markets. It highlights that infrastructure needs to start being built this year or next, but that planning consents are taking an average of 35 months for onshore wind at a national level, and 21 months for offshore wind in England.

Within days of winning the election, the Government removed wording in the National Planning Policy Framework (NPPF) that had effectively made it impossible to get planning for onshore wind farms in England.

Just a day before the Clean Power 2030 Action Plan was published in December, the Government also published its updated NPPF. The wording of the NPPF did not materially change the approach to renewable energy any further, but as outlined in the Action Plan, there will be further room for manoeuvre in the upcoming Planning and Infrastructure Bill which will be introduced early this year. The Government’s working paper on the Bill signals that they would like to streamline planning decisions across the board.

Ian Paton, partner in Cluttons’ infrastructure team, says: “The recognition that policy change is needed to speed up and smooth the delivery of much-needed energy infrastructure across the UK is welcome. However, it will come down to whether the changes needed can be delivered at pace.

“We have already seen a sharp rise in the demand for substations to deliver power from battery storage units, and those needed to power data centres, as well as industrial or wider commercial or residential hubs. This year will be crucial for the UK’s energy infrastructure, and we look forward to seeing the Planning and Infrastructure Bill for the next steps in how the policy landscape will change to support the large-scale delivery we need.”

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Ian Paton

Partner, building surveying

Oxford

T +44 (0) 7894 461 912
Ian Paton
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James Gray

Chief Executive Officer

Head office

T +44 (0) 20 7408 1010
James Gray, CEO, Cluttons
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Gráinne Gilmore

Director of research and insights

Head office

T +44 (0) 20 7408 1010
Grainne Gilmore, Cluttons

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