The following interventions will support the deployment of long-duration flexible technologies in driving towards Clean Power 2030:

• We have announced a groundbreaking deal with Net Zero Teesside, our first power C C U S project – delivering secure, low carbon power from 2028. • We are developing a hydrogen to power business model104 104 D E S N Z (2024), ‘Hydrogen to market intervention need and design’ (viewed in December 2024). investment and bring forward hydrogen to power capacity at an accelerated rate. We intend to provide further market engagement on the design of the business • Ofgem will introduce the cap and floor scheme to support investment in long-duration electricity storage, aiming to open the scheme to Long‑duration electricity storage Current installed capacity compared to the D E S N Z ‘Clean Power

Current installed capacity compared to the D E S N Z ‘Clean Power Low carbon dispatchable power includes biomass, power B E C C S , gas C C U S and hydrogen to power. Dispatchable technologies are ones which combust fuel to produce electricity and, by varying the rate at which fuel is burned, can respond to meet the needs of the grid with varying levels of flexibility. Long-duration flexible technologies can adjust their output quickly to match supply with demand and can provide a reliable source of electricity for managing daily and seasonal demand peaks and longer periods of low renewable output (such as ‘Dunkelflaute’ conditions). T oday, most of that flexibility is provided by around 35 GW of unabated gas and around 3 GW of 105 D E S N Z (2024), ‘DUKES’ (viewed in December 2024). mature technologies capable of providing technologies are ones which combust fuel to produce electricity and, by varying the rate at which fuel is burned, can respond to meet the needs of the grid with varying levels of flexibility. long-duration flexible capacity could be needed by 2030. Whilst we expect the majority of this capacity will come from unabated gas, it will be running less frequently as we support the deployment of low carbon alternatives and approach 2030. In this chapter we focus on driving forward the delivery of the low carbon long-duration technologies, such as power C C U S , H2P and L D E S , that are closest to maturity and could play a key role in a 2030 system. Biomass and B E C C S are covered in more detail in the Renewable and nuclear project Deploying new low carbon long-duration flexible technologies can add significant value to the system as they can replicate the role of unabated gas currently plays, minimise system costs and reduce delivery pressures on other technologies, such as offshore wind. NESO have noted in their report that even relatively small levels of operational capacity materially reduce the overall challenge of the rest

Power C C U S and hydrogen to power plants in Great Britain present a great opportunity for low carbon long-duration flexibility. We will also need to scale up the deployment of pumped hydro storage and drive forward innovation in more nascent Government is committed to the transition away from unabated gas whilst maintaining Power C C U S , which is natural gas fuelled generation equipped with carbon capture technology, can provide non-weather-dependent, dispatchable low carbon generation that will support a renewables-based 2030 system. The Power C C U S business model, known as the Dispatchable Power Agreement (D P A ), has been designed to ensure that Power C C U S plays a valuable mid-merit role, dispatching behind renewables, but ahead of unabated gas generation. The D P A will enable both new build projects and the retrofit of existing plants which will be key to enabling the transition away from unabated gas. NESO have suggested that we could need to deploy up to 2.7GW of power C C U S 107 NESO (2024), ‘Clean Power 2030’ (viewed in December 2024). importance of power C C U S beyond 2030 is also highlighted by the Climate Change Committee in their Carbon Budget 6 report where they model that power C C U S would provide 30TWh of generation a year by 2035 as part of the balanced pathway scenario 108 C C C (2020), ‘The Sixth Carbon Budget’ (viewed in December 2024). As well as supporting the clean power C U S more broadly is vital to decarbonising a range of industrial sectors and the deployment of negative emission projects. It will enable a just transition for industrial regions by decarbonising in a way that drives growth in the U K , with C C U S projected to support up to 50,000 jobs as the sector matures in the 2030s and adds £5 billion of value annually by 109 D E S N Z (2019), ‘Energy Innovation Needs Assessments’ (viewed in December 2024). . Carbon capture is a safe technology, and geological CO₂ storage is a proven technology that has been in operation globally for decades. In the U K we have the technical expertise and a geographical and geological advantage with a shallow seabed and 78 billion tonnes of theoretical CO storage capacity distributed across the U K 110 Energy T echnologies Institute (E T I ) (2016), ‘Strategic U K C C S Storage Appraisal’ (viewed in December 2024). centres to the geological storage sites provides the right opportunity for these industrial clusters to decarbonise through the C C U S cluster approach that we have established. This approach involves the strategic selection of industrial clusters to maximise the number of capture projects and is designed to fairly distribute cost and enhance the cost efficiency of transport and storage infrastructure, benefiting a larger number of capture projects. The deployment of C C U S in the U K will pioneer technical advancements and a world-leading regulatory framework to help Britain benefit from the opportunities of first

The world’s first at scale gas power plant with carbon capture. Groundbreaking deals announced on 10th December 2024 mean construction of the U K ’s new carbon capture industry will start in 2025.
Contracts were signed with Net Zero T eesside, the world’s first at scale gas power plant with carbon capture, supplying up to one million homes with low carbon, Combined with Northern Endurance Partnership (N E P ), the supporting CO and Storage project, the East Coast Cluster will capture and store carbon emissions from the region. This investment will directly support an average of 2,000 jobs in the North-East, marking the latest milestone in the government’s mission to reignite its industrial heartlands, tackle the climate crisis and turbocharge growth for decades to come. It follows the government’s £21.7 billion funding commitment to ensuring the U K ’s vision for C C U S becomes a reality in the U K . By signing the first Dispatchable Power Agreement (D P A ) with industry, the government is proving that this world-leading C C U S business model – developed over years in collaboration with stakeholders – is delivering real results by attracting investment and getting this game-changing technology off the ground. The D P A has been specifically designed to support projects like Net Zero T eesside to dispatch low carbon power ahead of unabated gas but not displace renewables. The D P A showcases the U K ’s ability to create innovative solutions to address the challenges of achieving net zero and this milestone is a testament to the collaborative efforts of industry and government, reflecting our shared vision of a decarbonised power sector. This is a landmark step forward in our plan for

In addition to Net Zero T eesside in the East Coast Cluster, there is a strong pipeline of potential Power C C U S projects in development across the U K which can deploy and play a key role in a decarbonised 111 Subject to meeting necessary planning and other regulatory approvals. north Wales, government is working with industry to deliver the HyNet Cluster, which aims to store up to 4.5 million tonnes of 112 Eni (2024), ‘HyNet North West Project’ (viewed in December 2024). Transport and Storage (T&S) network will enable the safe onward transport of CO from C C U S projects to permanent undersea storage. There is a power C C U S project which, among other C C U S projects, is aiming In addition to the East Coast Cluster and HyNet Cluster, the U K has an exciting pipeline of further C C U S clusters at a mature stage of development. These include Acorn in north east Scotland and Viking in the Humber which contain power C C U S projects We are clear that future emissions from the production of natural gas will need to reduce in the U K and across the world. Domestically, D E S N Z is working with industry to decarbonise upstream emissions of natural gas production. The North Sea Transition Authority (N S T A ) estimates that between 2018 and 2023, operators have reduced flaring by 49% and overall emissions from domestic upstream oil and gas production have decreased by approximately 28%. Through the North Sea Transition Deal, industry is committed to extend the overall emissions reduction to 50% from 113 North Sea Transition Authority (2024), ‘Emissions Monitoring Report 2024’ (viewed in December 2024). Internationally, we are also committed to the World Bank’s zero routine flaring initiative which aims to eliminate the practice by 2030 for oil producing platforms. The U K is also a member of the Global Methane Pledge, to collectively reduce global methane emissions by at least 30% by 2030 compared to 2020 114 Global Methane Pledge (2024), ‘Global Methane Pledge’ (viewed in November 2024). . In addition, we are working with the U S , E U and others to develop a framework to better measure, monitor, and report methane emissions from imported gas. We also share technical expertise and best practice internationally on reducing emissions in the C C U S was one of the five sectors which will benefit from the additional £5.8 billion allocated to the National Wealth Fund. This capital will be deployed by the National Wealth Fund to finance projects which are facing barriers to investment, helping to mobilise private finance into them. In the 2030s and as we accelerate to net zero, it is important industry and government enable the development of a self-sustaining U K C C U S sector that supports delivery of our Missions, jobs and reduces emissions, putting the U K at the forefront of

Hydrogen to Power can play a key role in our electricity system at a range of scales and is the primary low carbon technology capable of providing low carbon inter-seasonal storage, whilst providing a decarbonisation pathway for unabated gas. Our analysis indicates H2P is economic at lower load factors (below 30%), enabling it to be cost effective in a clean power system where flexible load factors are expected to fall as renewable generation increases 115 D E S N Z (2023), ‘The Need for Government Intervention to Support Hydrogen to Power’ (viewed in December 2024). faces two primary deployment barriers – increased investment risk and cost from being a first of a kind technology, and exposure to cross-chain risks from reliance on a nascent hydrogen value chain. There is a critical dependence on access to enabling grid-scale hydrogen infrastructure, such as new build transport and storage facilities, which typically have long lead-in times. Ensuring the deployment of hydrogen transport and storage infrastructure, alongside supporting H2P plants, will be critical in enabling delivery of H2P to deploy whilst also providing the infrastructure to support industrial decarbonisation Hydrogen to power business model To accelerate deployment of H2P, government is implementing a H2P business model (H2P B M ) to de-risk investment and mitigate our identified deployment barriers, as committed in the government’s December 2024 response to the consultation on ‘H2P need for and design of a market intervention’. We will deliver a H2P B M based on a Dispatchable Power Agreement style mechanism.
T o progress development of the H2P B M , we intend to publish a market engagement document in Spring 2025 outlining further detail on the proposed design of the H2P B M . We are establishing an H2P expert working group to support our Hydrogen storage will play a vital role in the hydrogen economy and the wider energy day network balancing and providing security of supply to hydrogen off takers. Large-scale deployment of H2P will require access to geological hydrogen storage via hydrogen pipelines, to enable delivery of H2P plants. Developers face barriers to investment including high costs, long lead-times, and uncertainty around how quickly demand for transport and storage will increase. This is why we are committed to designing, in 2025, new business models for hydrogen transport and storage infrastructure to address these barriers and unlock private investment. Public and private investment in transport and storage infrastructure will in turn unlock further private investment in the wider hydrogen economy, by helping to increase the geographical availability, reliability and cost-effectiveness of hydrogen supply. The Energy Act 2023 provides the legislative framework that will underpin the delivery of the hydrogen transport and storage business models. We are currently progressing the design of the commercial models and the process for awarding them at pace. Hydrogen production capacity is vital to increase the supply of the fuel for H2P plants and support is being provided through the Hydrogen Production Business Model. This provides hydrogen production projects with a route to market and we are already making progress, with the October announcement of £21.7 billion of available funding to

launch the first C C U S projects including 116 D E S N Z (2024), ‘Government reignites industrial heartlands 10 days out from the International Investment Summit’ (viewed in Eleven electrolytic hydrogen production projects were selected for contract award in the first Hydrogen Allocation Round A R 1), and we expect these projects to be operational by 2026. We intend to publish a shortlist of H A R 2 projects in due course and we are currently developing our approach to future H A R s, including H A R 3, and we will invite feedback through a market engagement exercise in due course. We intend to publish the next edition of the Hydrogen Strategy Update to the Hydrogen was one of the five sectors which will benefit from the additional £5.8 billion allocated to the National Wealth Fund. This capital will be deployed by the National Wealth Fund to finance projects which are facing barriers to investment, helping to mobilise private finance into them. Long‑duration electricity storage Long-duration electricity storage (L D E S ) is a key enabler to a secure, cost-effective and low carbon energy system. L D E S can help to decarbonise the system by supplying electricity continuously from several hours to up to several days without recharge, replacing flexibility from unabated gas and helping to alleviate constraints on the grid. It includes pumped storage hydro, a long-established and mature technology, and other more recently developed technologies such as liquid air energy storage. As well as providing electricity during protracted periods of low wind/sun, L D E S technologies also provide a range of essential grid services such as inertia, voltage support, short circuit and demand response. There is currently 3 GW of pumped storage hydro capacity connected to the grid long build times combined with revenue uncertainty have inhibited investment in L D E S development over the last 40 years 118 D E S N Z (2024), ‘Long-duration Electricity Storage Policy Framework Consultation’ (viewed in November 2024). This has been the greatest challenge to L D E S development, which this government has now addressed through announcing our decision to introduce a cap and floor investment support scheme with Ofgem acting as regulator and investment support 119 D E S N Z (2024), ‘Consultation Long-duration electricity proposals to enable investment’ (viewed in December 2024). suggests that we could need 4-6 GW 120 NESO (2024), ‘Clean Power 2030’ (viewed in December 2024). below will help bring forward more L D E S

Following government’s decision in October 2024 to introduce a cap and floor investment • Ofgem will publish an open letter on specific aspects of the scheme where it would like further stakeholder input and will provide further information • In Q1 2025, D E S N Z and Ofgem will publish a T echnical Decision Document to provide clarity on outstanding areas of the cap and floor scheme design • Ofgem expects to open the first cap and floor allocation round in Q2 2025 following publication of the T echnical • NESO have agreed to provide advice on the range of L D E S capacity that Ofgem should seek to provide cap and floor schemes for in the first allocation round, and support Ofgem in assessing Building on the two investments the National Wealth Fund has already made in L D E S companies, it will continue to engage with L D E S projects at Technology Readiness Level 7 and above – including those preparing to apply for the cap and floor – exploring financing solutions where there are barriers to private investment. The Capacity Market is the primary mechanism to secure capacity and ensure security of electricity supply in Great Britain. The scheme provides participants with revenue (£/MW), allocated through competitive auctions. This revenue is provided in exchange for the capacity being available at times of system stress. L D E S projects, where meeting qualifying criteria, are eligible to and currently participate in the D E S N Z will, ahead of the 2025 Capacity Market pre-qualification period in summer 2025, implement the Capacity Market policy proposals as outlined in its July 2024 and October 2024 responses to the 2023 Phase 2 Capacity Market consultation. Changes include increasing the build period extension available to support projects qualifying for the Capacity Market long stop mechanism.
This will allow generators requesting an extension (at the point of application), to have up to 6 years in a T-4 Capacity Market agreement to come online (via a 24-month extension). We expect this specific change to be in place ahead of the auctions in early 2026. This will be an addition to the existing Innovation can make an important contribution to the deployment of L D E S . More nascent technologies, such as liquid air energy storage, offering greater locational flexibility than pumped storage hydro, have quicker build times, and help to diversify the L D E S technology portfolio. Approximately £100m of innovation funding has been provided over the last decade to support the advancement of many 121 Approximate cumulative innovation funding for L D E S provided by the Department since 2014 from innovation funding programmes, including the Energy Innovation Programme and the Net Zero Innovation Portfolio. Net Zero Innovation Portfolio has funded novel technologies such as liquid air and flow battery energy storage, advancing them to demonstrator stage and catalysing investment in them, which has enabled these innovations to be viable options for low carbon flexible capacity by 2030 and beyond. Further innovation will ensure that

a range of novel technologies develop and Government, Ofgem, NESO, and network companies can ensure grid connection reforms and acceleration of grid infrastructure delivery timelines that result in sufficient capacity (in line with 2030 clean power capacity ranges) of L D E S projects connecting by 2030, including those that co-locate with renewables projects. We will work with the Ministry of Housing Communities and Local Government to consider how L D E S , and its importance to clean power in 2030 and net zero, could be referenced in future planning reform. In Scotland, responsibility for planning and consenting is devolved to the Scottish Government. Through their Fourth National Planning Framework (N P F 4), the Scottish Government has placed climate and nature at the centre of their planning system and made clear their support for all forms of renewable, low-carbon and zero emission technologies, including transmission and distribution infrastructure. Potential impacts on communities and nature, including cumulative impacts, are important considerations in the As clean power substantially reduces the amount of electricity generated by gas-fired plants, unabated gas will change its role in the system. Under a clean power system, it will play a back-up role at specific times throughout the transition to clean power. This means retaining sufficient unabated gas capacity until well beyond 2030, when it can be safely replaced by low carbon technologies that can provide the amount of long-duration flexibility necessary to keep the system balanced at all times. We currently rely on ~35 GW of unabated gas on the system to provide long-duration flexible 122 NESO (2024), ‘Clean Power 2030’ (viewed in December 2024). . This firm capacity is crucial for electricity security, and will be required as strategic back-up to respond to certain periods of high demand, even as we aim to reduce fossil generation (i.e. gas running Retaining the existing gas fleet where possible is likely to be the most cost-effective means of meeting the capacity we need for gas to fulfil its strategic function in 2030. Current fleet intelligence suggests most existing gas assets will remain online until 2030, but we are also consulting on measures to make it easier for gas assets to stay in the Capacity Market and for plants to access multi-year Capacity Market agreements, encouraging investment in life To provide the clarity investors need to make long-term decisions, we are introducing decarbonisation readiness requirements. This will ensure that new or substantially refurbishing combustion power plants in England, which submit their environmental permit application from 28th February 2026, must have a credible plan to decarbonise either through converting to hydrogen firing or through retrofitting carbon capture. Requiring developers to demonstrate the viability of their decarbonisation plan will ensure that the developers of new or substantially refurbishing combustion power plants have considered how they will access low carbon hydrogen or CO in the future, and that land necessary to enable that decarbonisation has been set aside. This will support providing visibility to investors over which sites are well placed to

Moreover, to help ensure that capacity coming forward before the implementation date consider their decarbonisation plans, we are placing an obligation on substantially refurbishing or new combustion power plants in England, participating in the 2026 Capacity Market auction to declare that they will comply with the Decarbonisation We are complementing this with measures intended to enable gas assets tied into long term Capacity Market agreements to exit without penalty and transfer to the power C C U S Dispatchable Power Agreement, enabling conversion to low carbon through retrofitting carbon capture equipment. We are exploring additional routes for gas assets in the Capacity Market to decarbonise including the feasibility of gas assets exiting long term agreements to enable conversion to H2P through H2P B M support. As low carbon flexible technologies become more established, unabated gas will increasingly move to a reserve role on the system, essentially called upon as a last resort to meet peak demand, and demand during long periods of low supply from variable sources. Maintaining this reserve generating capacity is important for reaching clean power by 2030. As set out in the market reform chapter, we are taking steps to reform the Capacity Market to ensure there is sufficient unabated gas capacity on the system to maintain security of electricity supply as it moves into this reserve role. The reforms we are announcing to existing market frameworks are the best way to ensure that the necessary strategic reserve capacity of unabated gas generation remains on the system.
The government’s view is that a novel out-of-the-market mechanism to manage that reserve may have a role in the long-term phase-out of unabated gas capacity once its volume in the system has significantly reduced and long-duration low carbon flexible technologies have been The actions outlined in this section will be critical to delivering a strong pipeline of low carbon long-duration flexible technologies and driving forward innovative and nascent technologies that can play an important role in delivering clean power. It also makes clear the important role that unabated gas will continue to play in a new back-up role to provide security of supply into the 2030s and beyond, whilst giving clarity for investors on the future routes to decarbonisation

Lowering barriers to investment into resilient supply chains and workforce development is vital to ensuring we meet the demand for Clean Power 2030 and to capturing the benefits of this change for our economy. This is an opportunity to support U K growth by building domestic supply chains, growing the skilled workforce and spreading good jobs across the country. Government will support industry to secure the supply chains and skilled workforce they need Giving developers greater route‑to‑market certainty so that they can plan and secure necessary supply chains and workforce, sooner. Rapidly convening a new supply chains and workforce industry forum for key Clean Power 2030 sectors, including trade unions, to develop a deep understanding of system-level supply chain and workforce planning needs for Clean Power 2030 delivery, exploring bold solutions and devising targeted collective actions to ensure they are met. Maximising domestic opportunities for clean energy supply chains through cross- economy work such as the U K ’s Industrial Strategy in Spring 2025, and clean power Exploring where international collaboration can support supply chains, including via trade agreements and international co-operation. The government is determined to work with other countries to diversify international supply chains. Driving an increase in capacity of our domestic clean energy workforce to match the scale of the deployment challenge through our investment into clean energy sectors, and accelerating wider reforms led by the Office for Clean Energy Jobs, the Department for Education, and Skills England alongside targeted clean power offers, working closely with the devolved governments, industry, and trade unions. Boosting awareness of clean energy job opportunities by publishing data on future clean energy workforce and skills needs, to ensure a common understanding of trends and challenges to inform action. To deliver Clean Power 2030 we need secure, sustainable, competitive and reliable supply chains to provide the components and materials it requires. The U K will need to source more components by both powering up our domestic manufacturing and ensuring access and competitiveness in international markets. As we achieve this, we are committed to unlocking the growth benefits that come with scaling up deployment and manufacturing of clean energy technologies. Our ambition is to see a sustained increase in supply chain activity both up to 2030 and Domestically, the U K has established manufacturing capacity in some of the key technologies needed to deliver Clean Power 2030. We have strengths in offshore wind engineering services, cables, electrolysers and electrical equipment, as well as parts of the wind turbine generator and monopiles. We also have suppliers with expertise in both high-voltage alternating current and high-voltage direct current (H V D C ) electrical systems and are aiming to build capacity in H V D C cables. The upcoming Industrial Strategy will look to attract investment in growth-driving sectors including clean energy industries, and work is being carried out to determine the key subsectors on which it will focus. More broadly, we are a world-leading investment location, with a strong pipeline of potential projects that could strengthen our base further, although we will always need to also buy inputs and finished components from the

We have been working with industry to make an initial assessment of the industry procurement challenges that may be faced for Clean Power 2030, building on previous evidence produced in collaboration with Baringa and the Industrial Growth Plan 123 Baringa (2024), ‘U K renewables deployment supply chain readiness study’ (viewed in December 2024). 124 RenewableU K , Offshore Wind Industry Council, T C E , & The Crown Estate Scotland (2024), ‘Offshore Wind Industrial Growth Plan’ (viewed This work has identified constraints across several key sectors, with supply chains close to full manufacturing capacity, long lead times for key components, and reliance on single international sources in places. Alongside these constraints, there are several cross-sectoral challenges associated with procuring components and delivering the resilient supply chains we need for • Investment confidence for buying components and investing in domestic manufacturing. Developers need greater certainty in the clean power deployment pathways and associated order books to secure supply chain components as early as possible, especially those with long lead times. In turn, this will give greater confidence to the supply chain to make investment decisions committing to basing or increasing future manufacturing capacity in the U K . We also know that U K supply chain companies need early, strategic engagement from developers to help develop and refine their product and service offerings to market needs. • International buying power. There is growing global competition for clean energy supply chains, with competition for key components across different countries and sectors, which can result in prices being driven up. The U K will always be reliant on international supply chains to some alongside stronger domestic supply chains, it is essential that U K developers have reliable access to and are able to compete in international markets for materials or components. • Logistical constraints.
On a sector-by-sector basis, there are specific issues that prevent or delay transport and deployment of supply chain components – most prominently in transmission networks, offshore and onshore wind, where ports, vessels, and abnormal load The wider transition to net zero is expected to support hundreds of thousands of jobs, with Clean Power 2030 playing a key part in stimulating a wealth of new jobs and economic opportunities across the country 125 C C C (2023), ‘A Net Zero Workforce’ (viewed in November 2024). These jobs will cross a range of skill levels and occupations, including technical engineers at levels 4–7 (and particularly 6+ including roles in civil, mechanical, electrical and design), along with electrical, welding, and mechanical trades at levels 2–7, and managerial roles including project and delivery managers at levels 4–7 126 U K Government, ‘What qualification levels mean’ (viewed in December 2024). Many of these occupations are already in high demand across other sectors such as house building, construction, and wider manufacturing, and there also is a relatively high degree of transferable skills and knowledge between many carbon-intensive sectors and clean energy sectors, so wider sectors to clean energy sectors, suggesting workers in carbon-intensive sectors are likely to have many of the skills needed across the Clean Power workforce. The challenge will be in enabling the reskilling of these workers, quickly. of the Clean Energy Skills Challenge’ evidence annex sets out further evidence on key clean energy occupations, gathered

The challenge of finding employees with the right skills to take on these roles is already significant and expected to remain so. Through industry engagement, we have identified several key barriers to securing the • Delivering future skills There are a number of gaps and key occupations that need to be better targeted in the post-16 skills system. Exacerbating the challenge is the high proportion of small and medium sized enterprises in clean energy sectors, some of whom have struggled to engage with the existing skills system. The U K also has an ageing workforce, and many individuals with the skills we need have left the workforce or • Reskilling and Most of the workforce we need for 2030 is already employed, so retraining, upskilling, and increasing the transferability of workers between sectors accessibility of clean power Lack of awareness of green sector jobs is exacerbating role shortages and putting future skills supply at risk. The Learning and Work Institute reported that 87% of 16–24-year-olds did not know what ‘green skills’ were when asked 128 Learning and Work Institute (2023), ‘Skills for a net-zero Insights from employers and young people’ (viewed in November 2024). reducing uptake of skills and training provision. In addition, we are not fully utilising the talent and ambitions of our workforce, for example, only 16.5% of the engineering workforce is female 129 EngineeringU K (2022), ‘Women in Trends in women in the engineering workforce between 2010 and 2021’ - Based on O N S Labour Force Survey data (viewed in December 2024). only 7% of the offshore wind workforce are from non-white backgrounds 130 Offshore Wind Industry Council (2023), ‘Offshore Wind Skills Intelligence Report’ – Based on job record data provided by employers • Regional Several clean energy sectors, like offshore wind and carbon capture, are heavily clustered in specific regions of the U K . With limited data on skills needs, local skills providers are struggling to identify and tailor skills requirements around the rapidly evolving needs of their local areas. They can also find it challenging to respond to these needs given constraints on the teaching workforce and on the availability of facilities and equipment that support clean energy skills development. intensive and clean energy sectors Manufacturing and production sectors ‘Similarity’ refers to cosine similarity, calculated using skills and their prominence across S I C groupings and clean energy sectors. The following traditional sectors are Construction (Section F), Water (Section E), Electricity and Gas Supply (Section D), Manufacturing (Section C), Mining excl. Oil and Gas (S I C 05, 07, 08, 099), Oil and Gas (S I C 06, 091). There may be a small proportion of job adverts which fall into both D E S N Z experimental analysis of Lightcast online job advertisement data (2024). The Clean Energy Job Adverts Charts and Methodology document provides more detail on this analysis. Electricty NetworksHeat and Buildings Smart Systems andStorage Flexibility ‘Similarity’ refers to cosine similarity, calculated using skills and their prominence across S I C groupings and clean energy sectors. The following traditional sectors are Construction (Section F), Water (Section E), Electricity and Gas Supply (Section D), Manufacturing (Section C), Mining excl. Oil and Gas (S I C 05, 07, 08, 099), Oil and Gas (S I C 06, 091). There may be a small proportion of job adverts which fall into both D E S N Z experimental analysis of Lightcast online job advertisement data (2024). The Clean Energy Job Adverts Charts and Methodology document provides more detail on this analysis. We will take action to address these barriers, through broad U K government industrial policy, English skills reforms and through targeted Clean Power 2030 initiatives. Similar approaches are being taken across the devolved governments, such as those outlined in the Scottish Green Industrial 131 Scottish Government (2024), ‘Green Industrial Strategy’ (viewed in December 2024). 132 Welsh Government (2023), ‘Economic priorities for a stronger economy’ (viewed in December 2024). and the Northern Ireland Executive’s Path 133 Northern Irish Executive (2021) ‘Path to Net Zero Energy’ (viewed in December 2024) developers of clean power infrastructure the best chance of securing the supply chains and workforce they need to deliver Clean Power 2030, and we are committed to delivering Clean Power by 2030 in such a way that retains value for money and balances cost considerations with delivery. This starts with giving developers greater clarity and certainty over their routes to market, to enable them to plan and mobilise the supply chains and workforce they need to deliver new generation.
This will help give forward sight to supply chain companies to prepare and have capacity to supply clean power infrastructure projects. We have aimed to do this elsewhere in this plan, particularly in sections covering market reform, Contracts for Difference reform for upcoming allocation rounds, proposed changes to planning and consenting, and connections queue changes. For network companies, greater flexibility to secure supplier capacity earlier and for the longer term will be given primarily through the launch of Ofgem’s Advanced 134 Ofgem (2024), ‘Electricity Transmission Advanced Procurement Mechanism Consultation’ (viewed in December 2024). The Clean Power 2030 Unit, in collaboration with the Office for Clean Energy Jobs, will convene key stakeholders from Clean Power 2030 sectors in a new industry forum in early 2025. This will be a collaborative vehicle for proactive supply chain and workforce planning. Further information on this forum is included in the government’s approach to delivering Clean Power 2030 chapter as a case study for how we will drive delivery through a new, mission-focused approach. Alongside the work of the forum to develop collective actions for Clean Power 2030 delivery, U K government has a further role • Maximising domestic opportunities for clean energy supply chains through cross-economy work such as the U K ’s Industrial Strategy in Spring 2025, and clean power specific policy actions. • Exploring where international collaboration can support supply chains, including via trade agreements and international co-operation. The government is determined to work with other countries to diversify international • Driving an increase in capacity of our domestic clean energy workforce to match the scale of the deployment challenge through our investment into clean energy sectors, such as the Clean Industry Bonus and Great British Energy, and accelerating wider reforms led by the Office for Clean Energy Jobs, the Department for Education, and Skills England alongside targeted clean power offers, working closely with the devolved governments, industry and trade unions. • Boosting awareness of clean energy job opportunities by publishing data on future clean energy workforce and skills needs, to ensure a common understanding of trends and challenges Maximising domestic opportunities for A range of work is already underway in government to support cross-economy development of domestic supply chains. In spring 2025, we will publish an Industrial Strategy including a clean energy sector plan. Government’s approach to stimulating investment and activity in growth-driving sectors will be set out in this upcoming Industrial Strategy, which we will continue to actively shape to maximise its benefits for clean power industries. The strategy will outline government’s next steps to securing growth opportunities in these industries, and a clear approach to enabling sectors to overcome barriers to growth and investment, including in supply chains. A new supply chains taskforce will assess where supply chains critical to the U K ’s economic security and resilience are vulnerable – focussing in the first instance on supporting the development and delivery of In addition, we are taking action to focus investment into boosting our supply chain capacity and create pathways for efficient • Delivering the new Contracts for Difference (CfD) Clean Industry Bonus. This initiative allows clean energy developers in fixed and floating offshore wind to access additional CfD revenue for investments in manufacturing in our coastal and energy communities and cleaner, more sustainable supply chains. • Consulting on targeted reforms to the CfD mechanism for upcoming allocation rounds, including improving transparency and predictability in the timing and scale of future CfD allocation rounds, which in turn can support increased investment in clean power supply chains. Further detail on these reforms is included in the Renewable and Nuclear Project • Delivering the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) which was set up to provide grant funding to support the development of port facilities for large-scale floating offshore wind deployment. The Port of Cromarty Firth and Port Talbot have been placed on the FLOWMIS primary list, meaning they have been taken forward for detailed due diligence, subsidy control assessment and negotiation of grant terms. Further detail on the role of floating offshore wind is included in the Renewable and Nuclear Project • Mobilising government investment into the clean power sector via the National Wealth Fund and Great British Energy. At least £5.8 billion of the National Wealth Fund’s capital will focus on five other sectors relevant to clean green hydrogen, carbon capture, ports, gigafactories and green steel. £8.3 billion over the course of this Parliament has also been committed to the newly created Great British Energy, which will work in lockstep with the National Wealth Fund. It will work to support the growth of clean power supply chains across the U K , ensuring the benefits of these are widely • Supporting Ofgem’s development of the Electricity Networks Advanced Procurement Mechanism to be launched in early 2025 with the aims of providing greater flexibility for Transmission Owners to secure supplier capacity and to bulk procure multiple factory slots across a portfolio of projects ahead of need. collaboration can support supply chains We recognise that, though it is crucial to build domestic capacity, some of our supply chain needs will be met by the global rather than the domestic market. Where this is necessary, we want to give developers the best possible opportunity to secure what they need. We will do this • Collaborating with international partners through international initiatives such as the Global Clean Power Alliance and other bilateral and multilateral initiatives, to diversify and strengthen supply chains. This has the potential to support new sources for critical clean power components, address bottlenecks • Exploring international solutions to ensure the U K is able to secure the critical goods it needs for the energy transition and explore international trade frameworks and institutions that can support the transition to net zero. Driving the increase in capacity of our domestic clean energy workforce Wider reform of the skills and employment system are underway across government to shape the domestic workforce and support the delivery of Clean Power by 2030.
The skills and expertise of workers from the oil and gas will be central to the success of our Clean Energy Mission. There is a huge opportunity for re-skilling and transferability of skills of the oil and gas workforce across the economy. As skills policy is devolved, we will commit to continue our ongoing dialogue and collaboration with our counterparts in the devolved governments to ensure a coordinated and joined-up approach. The Scottish Government published the Green Industrial Strategy in September 135 Scottish Government (2024), ‘Green Industrial Strategy’ (viewed in December 2024). . This outlines that the availability of high quality, appropriately skilled and ambitious people is critical to the willingness of a business to start, scale and invest. Significant work is progressing to reform the Scottish education and skills system so that it is more responsive to economic needs and ambitions. The Scottish Government will continue to invest in that system and the infrastructure that supports it, including for example, schools, colleges, universities, apprenticeships and our Innovation Centres, to enable the transition to net zero as well as The Welsh Government has published the Stronger, Fairer, Greener Net Zero 136 Welsh Government (2023), ‘Stronger, Fairer, Greener Net Zero Skill Action Plan’ (viewed in December 2024). steps towards understanding where and how skills needs will change over time and indicate how the Welsh Government will support this transition. Other planned Welsh initiatives include the publication of Clean Energy Sectors Skills Roadmaps, an Energy Sector Deal, supporting the Heat Strategy for Wales to advance decarbonisation, developing a new renewable energy apprenticeship framework and fostering industry collaboration to enhance supply The Northern Ireland Executive is also looking to influence and shape developments in green skills and has facilitated an industry-led Green Skills Action Plan. The Green Skills Action Plan initially focusses on the following three large-scale energy production; infrastructure; and domestic low carbon technologies and energy efficiency to ensure that courses and apprenticeships are in place to provide the skills needed for the energy transition. Ongoing U K government work • Setting up The Office for Clean Energy Jobs, which has been created to focus on ensuring we have the skilled workforce in core energy and net zero sectors critical to meeting Clean Power 2030. It will focus on supporting regions transitioning from carbon-intensive industries to clean energy sectors, ensuring clean energy jobs are high quality, with fair pay, favourable terms and good working conditions, and increasing diversity in the clean energy workforce. It will engage across the energy sector, trade unions and industry to deliver on this. • Designing a pilot scheme to support regional skills interventions that will help transition the U K workforce from carbon-intensive sectors to clean energy sectors. This will be achieved by identifying and addressing skills gaps and challenges through targeted interventions trials on a regional basis. Interventions could include local skills and workforce mapping, career transition advisors, funding for direct training provisions. • Setting up Skills England to provide an authoritative assessment of national and regional skills needs; work with Combined Authorities to ensure these are met; align a comprehensive suite of apprenticeships, training and technical qualifications with skills gaps; and advise on a new growth and skills offer. D E S N Z will work with DfE and Skills England, together with the devolved governments, on early reform priorities to ensure that policy implementation begins as soon as possible to have the greatest impact on Clean Power 2030. The government will also evolve the apprenticeships offer into a more flexible growth and skills offer, delivering greater flexibility for learners and employers, aligned to the Industrial Strategy, creating routes into good, skilled jobs in growing industries such as clean energy. D E S N Z will work with DfE, Skills England, and the sector to inform the offer. D E S N Z will also work with DfE on transforming further education colleges into specialist T echnical Excellence Colleges and on ways to enhance the further education workforce in clean energy and related sectors. The Curriculum and Assessment Review closed its call for evidence recently, and many clean energy industry bodies • Taking forward the ‘Get Britain Working’ White Paper. This sets out plans for reforms to employment support to tackle economic inactivity, such as the Y outh Guarantee, a new jobs and careers service to support more people into work and help them get on in work, and locally led Get Britain Working Plans for areas across England. D E S N Z , D W P and DfE will work together to develop proposals for how the specific reforms mentioned within the White Paper will be implemented to support delivery of the workforce needed for Clean Power 2030. In addition to this cross-economy work, we are taking the following clean power specific action to secure the 2030 • Exploring targeted skill interventions to reskill and upskill workers across the economy, including identifying the regions that will be most impacted by the transition to clean energy. As of October 2024, D E S N Z has come onboard as a strategic partner of the Skills Passport project. The passport is an industry led initiative overseen by Renewable U K and Offshore Energy U K and supported by the U K and Scottish Governments which will align standards, recognise transferable skills and qualifications and map out career pathways for suitable roles. This new digital tool for workers is set to be piloted by January 2025. • Developing ways to support access to training schemes in key clean power sectors needed for 2030. Government is developing several new economic and investment policies which will crowd investment into the sector and create future potential opportunities to channel funding into skills provisions and training.
Boosting awareness of clean energy job Ensuring an improved uptake of clean energy upskilling and reskilling offers will be essential, we will do this by establishing a common understanding of the barriers and collaborating with industry to overcome • Publishing the ‘Assessment of the Clean Energy Skills Challenge’ evidence annex alongside this Action Plan, comprising data gathered across government, industry and company leaders, academics and further education representatives. This evidence is based on previous 2035 targets. However, the key near-term occupation shortages and workforce challenges sectors are expecting to face are anticipated to be largely similar. This evidence will be used as a basis for government, industry, and other key partners to better understand the 2030 workforce requirements and support targeted skills planning • Exploring public awareness campaign options, working between government and industry to see how we can coordinate messaging promoting the opportunities from clean energy jobs, help employees and employers navigate the skills landscape, and improve diversity in the clean energy workforce. • The first meeting of the new collaborative forum will take place in early 2025, convening key partners across private and public sectors to work collaboratively on supply chain and workforce planning. • Our new, modern, Industrial Strategy ‘Invest 2035’, including a sector plan for clean energy industries, will be published in Spring 2025, setting out the government’s approach to growth opportunities in clean energy industries across both supply chains and skills. • We will deliver an updated carbon budget delivery plan in due course to the end of Carbon Budget 6 in 2037 with full detail of policy packages for all the sectors. This will provide a long-term line of sight, outlining the policies and proposals needed to deliver carbon budgets 4-6 and the Nationally Determined Contributions in 2030 and 2035 on a • Government is developing a new Trade Strategy which will support the energy transition in alignment with Clean Power 2030, and ensure resilient global

Delivery of large-scale transitions is nothing new for the energy sector, but the challenge of achieving clean power by 2030 is substantial. The Clean Power 2030 Action Plan defines the U K government’s role in the clean energy transition. Government will work with industry to unlock barriers and will take an innovative approach. Additionally, it is important that government looks at a clean power system beyond 2030, where demand is expected to increase. Clean Power 2030 needs a large amount of infrastructure to be delivered in just a few years, almost all of which will be delvered by private companies – including making key components, designing and developing projects, installing infrastructure, operating power generation plants, and All these companies are key to successful delivery of Clean Power 2030, and the U K is fortunate in having many people with a great deal of practical experience and knowledge in all these areas. The Clean Power 2030 Unit draws together a mix of skills from within the Civil Service and industry expertise, ensuring the right insight and expertise is available to support delivery. The Clean Power 2030 Unit itself is underpinned by an advisory commission made up of 8 leading figures from across industry and academia who provide insight and advice on all aspects of its work. The Clean Power 2030 Unit is also committed to working closely with those involved in practical delivery. The engineering, commercial, market, regulatory and policy landscape is complex, and we will need deep skills in all these areas combined with an ability to engage all parties to cut through issues quickly, together with creating and sustaining a mindset of collaborative endeavour across the industry. To create the Action Plan, experts from government and the clean power sector explored policy approaches and assessed their deliverability. We believe the actions in this plan define the necessary policy landscape for successful delivery of Clean Power 2030, with a clear statement of intent and potential route to Clean Power 2030. However, we recognise that this is just the start, and the coming years will see a complex programme of activity, relying on the work of a wide range of businesses, many parts of government at central, regional and local level, the third sector, and individuals. We are committed to working hand-in-hand with industry, to provide both direction and support to deliver our common goal. The work of the Vaccines Task Force during the pandemic demonstrated what can be achieved when tight focus, strong direction, and full collaboration come together. A key role of the Clean Power 2030 Unit is to build and maintain a comprehensive view of the power infrastructure that is currently in various stages of development and delivery, and of the wider enablers across the electricity system, to understand what is likely to be delivered by when, where challenges may be emerging, and early warning signs for these, and what actions can be taken to keep key investments on track. The Unit will take a whole-system approach, tracking power generation, transmission and distribution infrastructure, and with a particularly close focus on the development of flexible power production and consumption and smart demand, as well as the parallel evolution of the heat and transport sectors, and how the system contributes to our overall emissions. The Unit will also track vital wider enablers across the length and breadth of this Action Plan, to effectively identify whether the

Where emerging problems are identified, the Unit will work with government sector experts to investigate what can be done in more detail, develop actions that can be taken, and drive their implementation. The Advisory Commission will have a key role in advising both on emerging issues, and We commissioned NESO to provide advice on the potential pathways to achieve clean power by 2030.
This suggested Clean Power 2030 is achievable, with insights on the The Unit will bring together data and insights from across government and the clean energy sector, to track the delivery of clean power infrastructure and metrics for vital wider enablers, with analytical and data science expertise embedded within the Unit. This capability will provide decision-makers with up-to-date insight on progress across the infrastructure projects critical to 2030 and will inform actions taken to promote effective delivery and address emerging issues. The Unit will work to promote collaboration on collecting and using these data across government and our delivery partners This work will also involve managing dependencies and ensuring that our future power system works as a coherent whole. The Clean Power 2030 Unit will continue to develop this data capability in the New Y ear. We currently envisage an expert team across all necessary fields, supported by strong data flows and backed by the Mission Board, the Secretary of State, and ultimately the Prime Minister, all within a structured engineering This is a once-in-a-generation opportunity to deliver clean power – and we are committed to operating a robust system of evaluation and innovation to drive continuous improvement throughout the system. With global competition for resources for clean energy technologies we know that developers face challenges in securing both the materials and skills they need. Our approach to delivering Clean Power 2030 presents a unique opportunity for government and industry to come together to more proactively plan and coordinate supply chain and workforce delivery. We will have clearer line-of-sight of what needs to be built and by when, so are uniquely placed to work in lockstep with industry to help them manage and navigate supply chain and In addition to the policies and actions discussed in the Supply Chains and Workforce chapter, we see a core role for the Clean Power 2030 Unit in bringing together key industry players to think radically about the challenges facing our supply chains and workforce. This group will meet for the first time in early 2025 and will look to quickly move to agreeing specific policy actions that can be taken to address shared To do this we will establish a new forum, convened by the Clean Power 2030 Unit in close collaboration with the Office of Clean Energy Jobs, which brings together key partners, across private and public sectors, including trade unions, in infrastructure delivery. Drawing on past government experience of working innovatively with industry, this forum will quickly form a view of the Clean Power 2030 system-level supply chain and workforce needs and then devise targeted collective actions to ensure these

We will engage with industry in the development of this forum, exploring what role it should take to be most impactful. This could be a more active role for government in supporting workforce planning across key sectors for 2030 or enabling greater collaboration and sharing of insight across industry. The new forum will join up work already being done across the Offshore Wind Industry Council, the Onshore Wind Taskforce and the Solar Taskforce. The new collaborative forum will look to complement the work of these groups to drive forward bespoke actions for 2030. This group will meet for the first time in early 2025 and will look to quickly move to agreeing specific actions that can be taken to address shared risks in this area. The key role of the Devolved Governments The Devolved Governments will play an important part in meeting the targets for Clean Power 2030. The governments have significant devolved powers in areas around energy and will need to be a part of the U K wide initiatives to ensure effective implementation of Clean Power 2030 policies. Not least, we will need their support in streamlining the planning and consenting processes to facilitate faster development of The development of clean power infrastructure will create jobs for local areas, and we will need support to ensure that the skills development is in place to fill these roles. The U K government has been working closely with the devolved governments to ensure there is a consensus and understanding with what will be needed to achieve Clean Power by 2030. The Welsh Senedd was the first government to declare a climate emergency. Welsh Government has set a target for Wales to host sufficient renewable capacity to meet its own needs from 2035 and to keep pace as we move away from fossil fuels and demand for clean electricity increases. Welsh Government welcomes the Clean Power Plan, which is necessary if Wales is to achieve its ambitions for a prosperous low carbon future. This plan will be important in accelerating the start of what must be a long term pathway for the next thirty years. We need future certainty to secure long term investment in the nation’s energy infrastructure, and in the skilled workforce we Whilst we recognise the importance of large scale generation and transmission networks, our Future Energy Networks for Wales work also recognises the role of smarter and more local energy use. Wales is taking a proactive approach to planning for the new energy system, supporting local authorities to develop plans that show how transport, heating and industry will change as we use cleaner fuels and more efficient processes. Our Ynni Cymru programme is supporting a range of projects that look to meet energy needs locally, keeping value local and reducing the need for large scale change. We look forward to contributing evidence from this innovative programme, to how we collectively achieve the future energy system at least cost and least impact for people. The Scottish Government is committed to working closely with the U K government on shared ambitions to decarbonise energy generation and drive progress towards net zero.
Close collaboration is vital to ensuring coherent delivery of the Action Plan across Great Britain, and devolved areas – such as Scotland’s terrestrial and offshore planning and consenting systems – will Scotland’s significant renewable energy potential, strong pipeline of projects, and growing supply chain will be essential to achieving a secure, affordable and clean power system across Great Britain. The Scottish Government’s objective is to ensure this brings significant wider benefits – such as boosting economic growth, supply chains and green jobs; delivering renewable energy with tangible benefits to communities; and Scotland has already made significant progress towards a clean, fair and secure energy system. Scotland is a net exporter of electricity to the rest of Great Britain, and in 2022, more than 70% of electricity generated in Scotland was from renewable sources. Scotland’s renewable energy capacity continues to grow, with a strong pipeline of future projects that will play a

key role in decarbonising the power system The Scottish Government is already taking action to build on this progress and accelerate deployment of clean energy – this includes measures to improve the planning and consenting regime for energy infrastructure; delivering the Green Industrial Strategy; investing in the offshore wind supply chain in Scotland; and actions to achieve the Scottish Government’s existing 2030 ambitions for onshore The Scottish Government will continue to work with the U K government to maintain investor confidence and boost renewables deployment, whilst also securing clear benefits for consumers and communities The Clean Energy Superpower Mission will benefit U K taxpayers, which includes Northern Ireland. Energy policy is largely devolved to the Northern Ireland Executive, and they are producing their own plan to decarbonise the power sector. Taking a holistic four nations approach will increase the benefit for the entire U K . Clean Power 2030, whilst a target for Great Britain, is on the pathway to reach net zero by 2050, which as enshrined in law, includes The delivery of Clean Power 2030 will rely heavily on the collaboration and input from a huge range of public and private sector organisations. Government will work in close collaboration with these groups to deliver Clean Power 2030. Whilst the list of organisations essential to our successful delivery is long, particularly key Private sector input is essential, bringing the expertise and investment required to achieve the ambitious Clean Power 2030 target. This plan outlines the policy actions being taken by the government, but the industry will play the core role in the delivery of the Clean Power 2030 target, from securing the initial investment and undertaking early project design, through to building and operating Clean Power 2030 assets. The government has engaged with the industry while developing the action plan and will continue to do so as progress is made towards Ofgem is Great Britain’s independent energy regulator, whose primary responsibility is to protect energy consumers, especially the most vulnerable, while at the same time working with government, industry and consumer groups to deliver a net zero economy at the lowest cost to consumers and drive economic growth. Ofgem works closely with the Clean Power 2030 Unit, the National Energy System Operator, consumer groups and across government, to support its aim of delivering a clean power energy system by 2030 and a net zero economy by 2050. Its governing body is the Gas and Electricity Markets Authority, which comprises non-executive and executive members, and a non-executive chair. Members are appointed by the Secretary of State of the Department for Energy Security and Net Zero. Ofgem’s Senior Executive Committee is chaired by Ofgem’s Chief Executive Officer and is responsible for our overall performance; it is made up of the C E O and seven Director Generals and Directors from across Ofgem. Ofgem works on behalf of energy consumers to ensure that households and businesses across Britain can rely on a safe, affordable and environmentally sustainable energy supply. The U K has one of the most ambitious climate change goals in the world

and at the heart of this is our transition from a high carbon traditional energy system to one that is fully decarbonised. Ofgem has a key role in this transition, making sure that customers’ interests are looked after along the way. As a Non-Ministerial Department and independent regulator, Ofgem uses the duties and powers set out for it • Ensure fair prices so consumers pay a reasonable price for their energy and are • Drive up standards by ensuring energy suppliers abide by the rules and treat • Keep down costs by fostering innovation and attracting investment so consumers can make greener choices through new • Grow our energy resilience by helping to deliver a future energy system that is not reliant on global energy imports so consumers have access to stable, affordable, and secure supplies of energy. • Deliver government schemes for renewable energy, energy efficiency and to protect the poorest energy customers. The role of the National Energy System NESO was established in October 2024 as a publicly owned system operator, with new responsibilities in strategically planning the whole energy system and giving advice to government and Ofgem. NESO’s advice to government on achieving clean power by 2030 has been a key input in shaping this plan. NESO will be a key partner in delivering clean power, working closely with government Ofgem and industry. As a first step, NESO is consulting on the reform of connections processes, which includes aligning those processes with government’s clean power plan and with Energy Plan. This will enable the generation capacity required to meet clean power to efficiently connect to the system and provide longer term clarity for industry. As the System Operator, NESO will be working to ensure that its own operations, processes and systems are prepared for the drive to clean power. This will include developing an implementation and putting in place its ongoing industry engagement plan.
NESO will work with Ofgem to continue to push forward energy code reform and help to identify the direction of future code changes for clean power provided through the Strategic Direction Statement and assess how code change can be more effective and responsive to changing system or market needs. In November, NESO launched a consultation on its business plan which sets out how NESO will work to implement clean 137 NESO (2024), ‘Have your say on our first business plan as NESO’ (viewed in December 2024). D N O s are responsible for the infrastructure that delivers electricity from the national transmission network to consumers. This includes the maintenance and operation of towers, transformers, cables, and meters. They are key players in the energy transition, given their intrinsic responsibilities to enable the distribution of renewable energy. The role of Transmission Operators The three Transmission Operators are responsible for owning and maintaining the high voltage electricity network ensuring high voltage electricity can reach one of the fourteen Distribution Networks Operators across G B . They are key players in ensuring the energy system is suitably maintained and equipped to transport renewable energy The role of public finance institutions The U K ’s public finance institutions are empowered to deliver a range of financing tools to support government policy goals in line with their government set mandates. They play a key role in providing finance to clean power sectors and technologies, supporting them to commercial maturity and scale. This includes support for earlier stage innovation (U K Research and Innovation), smaller businesses vital to commercialisation of green technologies (British Business Bank), and first-of-a-kind commercial deployment, or later stage scaling-up and growth stages for businesses and technologies (National Wealth Fund and U K Export Finance). The National Wealth Fund will build on the U K Infrastructure Bank’s (U K I B ) leadership and investment expertise with an expanded suite of financial instruments (such as performance guarantees), additional capital, a broader mandate, additional resource to conduct more proactive development, a commitment to trialling new blended finance solutions with government departments, and a greater regional focus. It will continue to invest in U K I B ’s previous priority sector of clean energy (including renewable generation, nuclear, flexibility, storage, grid, retrofit, heat networks and clean energy supply chains) for projects which have a financing gap, helping to mobilise private capital into them. At least £5.8 billion of the Fund’s capital will focus on five other sectors relevant to clean green hydrogen, carbon capture, ports, gigafactories The public finance institutions are actively involved in financing clean power 2030, including battery storage facilities, renewable energy generation, and electricity network infrastructure and supply chains.