Tracking and supporting delivery of the system as a whole 131 Taking a data driven approach 132 An industry forum for system-level supply chain and workforce planning 132 The key role of the Devolved Governments 134 Role of power sector actors 135

A G R Advanced Gas-cooled Reactor B E C C S Bioenergy with Carbon Capture and Storage C C U S Carbon Capture Usage and Storage C H P Combined Heat and Power D E S N Z Department for Energy Security and Net Zero D P A Dispatchable Power Agreement D N O s Distribution Network Operators E E P Energy and Emissions projections H2P B M Hydrogen to Power Business Model gCO2e/kWh Grams of carbon dioxide equivalent per kilowatt-hour of electricity L A E S Liquid Air Energy Storage L D E S Long-duration Electricity Storage M H H S Market-wide Half Hourly Settlement NESO National Energy System Operator N S I P Nationally Significant Infrastructure Projects N S T A North Sea Transition Authority O B R Office for Budget Responsibility Ofgem Office of Gas and Electricity Markets REMA Review of Electricity Market Arrangements S S E P Strategic Spatial Energy Plan T N U oS Transmission Network Use of System

We will usher in a new era of clean electricity for our country, with our plan to deliver the most ambitious reforms to our energy system in Since Russia’s invasion of Ukraine, Britain has experienced a devastating cost of living crisis caused by our exposure to volatile fossil fuel markets. Every family and business in the country has paid the price and we remain exposed to future energy shocks. In an increasingly unstable world, our dependence on fossil fuels leaves us deeply vulnerable as a country – and that is true no matter where But there is a by sprinting to clean, homegrown energy, we can take back control from the dictators and the petrostates. That is why the Prime Minister has put delivering clean power by 2030 at the heart of one of his five missions and The age of clean electricity is about harnessing the power of Britain’s natural resources so we can protect working people from the ravages of global energy markets. This plan will provide the foundation for the U K to build an energy system that can bring down bills for households and businesses for good. And it is also about creating the sort of country that we know people want to see - reindustrialising our heartlands with good jobs and tackling the climate crisis. This plan sets out how the government will work with the clean power sector, including industry, trade unions, investors, policy makers and others to achieve our clean power goal. 2030 is just six years away, and we are under no illusions

about the scale of the task ahead, but mission-driven government is about acting with urgency and determination to rise to the That is why, in my first week in office, I appointed Chris Stark as Head of Clean Power 2030 in my department, leading a new mission control to drive progress towards our target. As a first step we commissioned the National Energy System Operator (NESO) to provide independent, expert advice on delivering clean power by 2030. Their advice, published earlier this year, showed that we can achieve our goal, protecting consumers and delivering a more This plan builds on that advice, setting out the government’s view of the pathway to 2030 and the steps needed to get there. Ultimately, we need to move fast and build things to deliver the once-in-a-generation upgrade of our energy infrastructure Britain needs. In our first five months, we’ve already lifted the onshore wind ban, established Great British Energy, consented almost 2 GW of solar, delivered a record-breaking renewables auction, and kickstarted our carbon capture and hydrogen industries. This is the speed at which we will As the Prime Minister has made clear, clean power is an urgent priority for our country. The clean power sprint is the national security, economic security, and climate justice fight of our time - and this plan gives us the tools we need to win this fight for the Foreword by the Rt Hon Ed Miliband M P

Cleaning up our power system has long been understood as central to decarbonising the whole economy. With a clean electricity supply, the electrification of heat, transport and industry open up as routes to net zero. But the wider benefits of clean power have also become clearer. In Britain, we have pioneered policies to grow renewable industries, attract investment and deploy clean energy technologies at a scale that was once thought impossible. There is now a route to more stable energy bills for households and businesses, as they increasingly go electric. We have also experienced the harsh repercussions of Britain’s over-reliance on fossil fuels, which left us badly exposed to the cost of globally traded oil and gas in the wake of recent Achieving clean power is now a broader goal, key to a growing economy, our national security and improving our standards of living. We should be in a hurry to achieve it. This year, Britain closed its final coal-fired power station, completing a successful transition from the most polluting energy source. Clean power by 2030 is our next milestone, but it requires us to act with much greater urgency. Britain has some of the world’s greatest clean energy resources, but we have planning and consenting processes that are far too slow to build the infrastructure needed to exploit them. That must change. NESO’s recent analysis shows the pipeline of projects needed for clean power by 2030. Their pragmatic advice is that security of power supply can be provided if we maintain

Britain’s fleet of gas power stations but reduce their use to no more than 5% of total generation.
That clarifies the build the grid that Britain needs, overturning decades of delay; install clean sources of power at a pace never previously achieved; identify the energy mix needed for the 2030 power system and reorder the connection queue to achieve it; develop a flexible system that can accommodate and store Britain’s renewable resources; deliver these benefits to consumers, people, households, and businesses as swiftly as possible. This requires a mission-focus – industry and government working in partnership at pace. The steps in this Action Plan will reform planning and consenting processes, contract new renewable power generation at the scale required, encourage long-duration energy storage and first-of-a-kind flexible clean capacity and open the path to clean power and new opportunities for For the first time, we will have eyes on a programme of clean power investment estimated to be around £40 billion per year for the next 6 years. That visibility allows a more active focus on removing the barriers to its achievement, supporting greater coordination of supply chains, with more U K -based production, and ensuring there are trained workers to meet the requirements across the country. This is the real prize, ensuring we are ready to meet the growth in electricity demand that we expect over Britain’s clean power mission is now underway. Clean Power by 2030 will herald a new era of clean energy independence and tackle three major the need for a secure and affordable energy supply, the creation of essential new energy industries, supported by skilled workers in their thousands, the need to reduce greenhouse gas emissions and limit our contribution to the damaging effects of climate change. Clean power by 2030 is a sprint towards these essential goals. We have accepted independent advice from the National Energy System Operator (NESO), on the energy infrastructure required to deliver Clean Power 2030. In a typical weather year, the 2030 power system will see clean sources produce at least as much power as Great Britain consumes in total over the whole year, and at least 95% of Great Britain’s generation; reducing the carbon intensity of our generation 1 Department for Energy Security and Net Zero (D E S N Z ) (2024), ‘Digest of U K Energy Statistics (DUKES) 2024’ (viewed in December 2024). Successful delivery will require rapid deployment of new clean energy capacity across the whole of the U K , reflecting the shared renewable ambitions of the U K , Scottish and Welsh Governments. In this plan, we are accepting government’s central role in steering the creation of this new energy system, setting our expectations for the 2030 capacities of key technologies at national We have high ambition. That means 43-50 GW of offshore wind, 27-29 GW of onshore wind, and 45-47 GW of solar power, significantly reducing our fossil-fuel dependency. These will be complemented by flexible capacity, including 23-27 GW of

battery capacity, 4-6 GW of long-duration energy storage, and development of flexibility technologies including gas carbon capture utilisation & storage, hydrogen, and substantial opportunity for 2 These voluntary offers of flexibility by energy consumers (whether households or industries) can also be referred to as demand side response (D S R ) or demand flexibility. In line with the NESO advice, this new capacity must be underpinned by the rapid delivery of 80 network and enabling infrastructure projects, most of which are already at an advanced stage of planning Over the period to 2030, security of supply will be protected with the maintenance Growing our clean energy system in this way will see once-in-a-generation levels of energy investment – an estimated £40 billion average per year between 2025-2030, spreading the economic benefits of clean energy investment throughout the U K with the collaboration of the Scottish and Welsh Governments. These investments will protect electricity consumers from volatile gas prices and be the foundation of a U K energy system that can bring down consumer bills for good. Every choice we make will be scrutinised to maximise the impact it can have in reducing 3 Undiscounted, 2024 prices. This includes £30bn investment in generation assets, and £10bn investment in transmission network assets. See the T echnical Annex for more detail on how this was calculated. The new industries and employment opportunities created by the huge investment ahead will also ensure there are lasting economic benefits from clean power Delivering Clean Power 2030 also paves the way to decarbonising the wider economy by 2050 as we pursue the electrification of heat in buildings, transport, and industry. By 2050, annual electricity demand is likely to at least double. Clean power by 2030 prepares us for the rapid growth in power demand expected over the 2030s and 40s. 4 Department for Business, Energy & Industrial Strategy (B E I S ) (2022), ‘Electricity networks strategic framework, Appendix 1 – Electricity Networks Modelling’ (viewed in December 2024). To hold to our path to 2030, we know that the government must take radical action, quickly. This document sets out our first major steps towards clean power, in partnership with the Scottish and Welsh Governments, industry and the Electricity Networks and connections We need to reform the grid connections process and reduce the queue to connect, working with NESO and Ofgem to provide a framework through which NESO can work with Transmission Owners (T O s) and Distribution Network Operators (D N O s) to prioritise projects needed for 2030, while maintain a robust pipeline beyond 2030. Around twice as much new transmission network infrastructure will be needed in the nation’s grid by 2030 as has been built in 5 National Energy System Operator (NESO) (2024), ‘Clean Power 2030’ (viewed in December 2024). Regulatory reform will ensure Clean Power 2030 is better integrated into planning and decision making, so investment can be made ahead of need and the time taken to build and deliver network projects can be reduced in line with 2030 requirements.
This includes working with Ofgem to explore the appropriateness of tightening the incentives and penalties on electricity transmission owners and distribution network operators to drive the acceleration of network delivery. The Scottish and Welsh Governments are considering how their planning and consenting regimes will also integrate with An improved planning and consenting environment will accelerate the expansion and upgrade of transmission and distribution networks. We will consult on expanding planning consent exemptions to include low-voltage connections and upgrades in England, and engage with M H C L G on opportunities to provide further flexibilities for the consenting of electrical substations. It is essential that we engage effectively and thoroughly with communities that will host new transmission network infrastructure, so they can be a part of the change to our The Scottish Government will shortly consult on the refresh of its Good Practice Principles for community benefits for onshore and offshore net zero energy infrastructure. The government’s view is that communities that host clean energy infrastructure should benefit from it. As a first step, we will publish guidance to increase the quantum and consistency of Community Funds and support the launch of industry public communications campaigns to encourage public awareness on the importance of networks infrastructure in With a prioritised grid queue, we can signal key projects for clean power and speed up planning and consenting processes across Britain. We will ensure communities directly benefit from hosting new clean energy infrastructure. We know that the majority of 2030 clean power projects are already in the pipeline, and so there is therefore a major opportunity in rewiring the planning system and unblocking bottlenecks to ensure projects can receive timely decisions so they We will do this first by upgrading the planning system itself, equipping organisations with the flexibility they need to manage the increased caseload it faces. This includes workforce reform and development as well as a commitment to reviewing resourcing Next, we will ensure the system can prioritise 2030-critical projects. We will make 2030 a core priority in updated planning policy vehicles and guidance. We have brought onshore wind back in to the Nationally Significant Infrastructure Project (N S I P ) regime. We will bring forward a Planning and Infrastructure Bill with measures to streamline the delivery of critical infrastructure in the planning process, and convene community, nature, and industry groups on complex projects to stress-test them prior to application. In line with Lord Banner’s recommendations, we will also progress work exploring changes to the legal challenge process for major We will ensure that a reformed planning system enhances the restoration of nature. We will do this by delivering the Marine Recovery Fund for Offshore Wind and are considering strategic mitigation approaches for onshore infrastructure in England. The U K government and the Scottish Government

are also working together to establish a similar Marine Recovery Fund for Devolved administrations are taking positive steps towards speeding up energy infrastructure planning and consenting too. In Wales, the Infrastructure (Wales) Act 2024 sets out the new consenting process for significant infrastructure projects, replacing multiple consenting processes in Wales with a single process. In Scotland, work is underway to secure the pipeline of future planners and increase skills and capacity within planning authorities. We are working closely with the Scottish Government on reform to deliver a streamlined and efficient legislative framework for electricity Renewable and nuclear project delivery Addressing blockages to networks, connections and planning progress will significantly help us deliver the renewable capacity we need for 2030. But there are The Contracts for Difference allocation process needs to meet our 2030 ambitions and put an end to the stop-start failures of recent years. We need high levels of renewables to protect consumers and they need to be secured at the best price. Offshore wind has a particularly important role as the backbone of the Following discussions with industry and subject to further assessment, we are minded to implement a package of targeted reforms. We will consider changes to the information the Secretary of State can use to inform the final budget for fixed-bottom offshore wind, an auction schedule to improve transparency and predictability, and review auction parameters, including our approach to the reference prices used to estimate the budgetary impact of bids. T o maximise the competitive process, we are also minded to relax eligibility criteria for fixed-bottom offshore wind projects so projects that have yet to obtain full planning consents can participate. We will consult on these changes We will leverage Great British Energy, and wider policy measures to support local and community-led renewable capacity, including for homes, businesses, public buildings and land, and shared spaces. Great British Energy will provide support to deliver the Local Power Plan, putting local authorities and communities at the heart of restructuring our energy economy. It will also align with NESO’s publications and the government’s response to identify locations for new generation projects on private land and undertake development on public land, unlocking scope for generation on Solar panels are already an eligible measure in existing programmes like the Warm Homes Local Grant and Warm Homes Social Housing Fund, and we will provide further details on how else solar could be supported in the Warm Homes Plan after the second phase of the Spending Review. We will also assess the potential to drive the construction of solar canopies on outdoor carparks through a call We are also committed to nuclear, including the lifetimes of existing nuclear projects where possible, and the development of emerging low carbon and renewable technologies that will play an important role beyond 2030, continuing to recognise that the policy of the Scottish Government is not to support new nuclear Reforming the electricity markets will support clean power generation and networks. Reform is vital in ensuring our market arrangements are fit for the 2030s and beyond.
We must ensure that the market

works in tandem with support schemes to deliver the right investment and operational signals and that any sector-specific barriers to deployment are addressed, to enable the huge volume of deployment that will A significant increase in short-duration 2030 under the D E S N Z ‘Clean Power Capacity Range’. Differences in total figures are due to rounding. storage, consumer led flexibility and interconnection capacity from 2023 levels will reduce the amount of more costly generation and associated network infrastructure that needs to be built, whilst maintaining security of supply. Reforming the transmission network charging (Transmission Network Use of System (T N U oS) charges) is critical in order to enable the increased deployment of future generation. The REMA Autumn Update outlines our ambition to conclude the policy development phase of the REMA programme by around mid-2025 and confirms that the timetable for REMA decisions will align with the timetable for the next allocation round (A Contracts for Difference (CfD) scheme in As we build an energy system reliant increasingly on variable renewables, improving the flexibility of the wider electricity system is key. A Low Carbon Flexibility Roadmap will be published next year, with new actions to drive clean power flexibility by 2030. We will introduce new market reforms to provide batteries and consumer-led flexibility with appropriate and fair access to, and utilisation within, relevant markets, and we will consult on how grid-scale batteries could be referenced in future planning reforms, and on including grid-scale batteries within the Environmental We will consider financing options for retrofit works, including batteries, in the Warm Homes Plan in England. We will consult to remove external display requirements for device meters from the Measuring Instrument regulations, and, in Summer 2025, we will publish a consultation on consumer engagement, including on how to help coordinate and amplify accurate messaging on consumer-led flexibility. We will also consider reform on the Maximum Resale Price and will introduce new Guaranteed Standards of Performance relating to smart We will respond to recent consultations on Energy Smart Appliance interoperability, a new licensing regime for service providers for consumer-led flexibility and load controllers, and tariff data accessibility. These will be followed up with detailed consultations on draft ‘first phase’ Energy Smart Appliance legislation, establishing minimum cyber security requirements for appliances in scope and a smart mandate for heat pumps; draft consumer-led flexibility service providers and load controller regulations and licence conditions, and measures to improve time of use tariff data accessibility. We will implement Capacity Market policy proposals, including permitted augmentation of storage, adjustments to Extended Performance T esting Requirements and making 3-year Capacity Markets agreements to low carbon technologies requiring no capital expenditure. We are projected to need 40-50 GW 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. dispatchable and long-duration flexible capacity in 2030 to support our power 14

system in extended periods of low renewable output. We are determined to drive the development of low carbon long-duration flexibility, which presents a substantial opportunity. We have announced Final Investment Decision for Net Zero Teesside, the world’s first at scale gas power plant with carbon capture, and we are also developing a Hydrogen to Power business model which will de-risk investment and bring forward capacity. We also need to scale up deployment of pump storage hydropower and foster further innovation in more nascent long-duration storage technologies such as liquid air energy storage. The cap and floor scheme, which could open in Q2 2025, will support investment in the sector. Unabated gas will continue to play a back-up role throughout the transition to clean power, ensuring security of supply. This means that we will retain sufficient capacity until it can be safely replaced by low carbon technologies. Clean power by 2030 is a signal to investors to locate in the U K and build strong domestic supply chains for key aspects of our clean power system. Actions to support and accelerate delivery will give developers greater route-to-market certainty, but we will go further, including with the forthcoming Industrial Strategy, which will include a sector plan for clean energy industries. We will convene 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 and devise targeted collective actions to ensure they are met. The Clean Industry Bonus will support manufacturing in coastal and energy communities and cleaner, more sustainable supply chains, while increased transparency and predictability in future Contracts for Difference allocation rounds will support investment. The National Wealth Fund will focus at least £5.8 billion of its capital on green hydrogen, carbon capture, ports, gigafactories, and green steel, while Great British Energy will support the growth of clean power supply chains around the U K . The clean power transition also needs a skilled workforce, with thousands of new jobs throughout low carbon sectors. Details of the Clean Energy Skills Challenge have been published alongside this Plan. The Office for Clean Energy Jobs will work with the sector, trade unions and the devolved governments to support regions transitioning from carbon-intensive industries to clean energy sectors, to ensure jobs are high quality, with fair pay, favourable terms, and good working conditions. This work includes targeted interventions to reskill and upskill workers across the economy, supporting access to training schemes, and promoting the opportunities of clean energy jobs so that a lack of skilled workers does not become a bottleneck in the achievement of our Clean How we will work, as government and with everyone involved, to deliver The Clean Power 2030 Unit will look across delivery of the key 2030 projects, working to identify blockages and ensuring that the clean power programme stays on track.
To do this we will draw together a mix of skills and experience from government and the clean power sector, underpinned by an Advisory Commission of leading figures from across industry and academia. The Unit will work closely with those involved in practical delivery, including the devolved governments, to cut through issues quickly and to build a comprehensive view of the power infrastructure currently

This insight, coupled with a strong underlying data capability that will bring together data and insight from across government and the clean energy sector, will help understand what is likely to be delivered, by when, and quickly identify emerging challenges. This will help the Unit take rapid action wherever it is needed to ensure delivery. This Action Plan is our first major step towards Clean Power by 2030. The coming months and years will see a new programme of activity emerge, relying on the work of a wide range of businesses, many parts of government at central, regional and local level across England and the Devolved governments, the third sector, communities,

Our whole way of life relies on our energy supply. But the world is changing, and the way we have powered our nation for decades, built around oil, gas, and coal is no longer something we can take for granted. Millions of us have experienced hardship in recent years, as the dangers of relying too much on oil and gas, in an increasingly volatile world, have become all too clear. The solution is clean homegrown power. The answer to some of the biggest challenges we face – building an energy system that is affordable for the long term, keeping our supply secure, and cutting our emissions before it’s too late – now all point in one towards the clean power sources that have become the core of A clean, affordable, and secure system is a realistic prospect – and we must seize this opportunity. The National Energy System Operator has produced independent advice which indicates what infrastructure we will require to deliver Clean Power 2030. If we get this right, this is a huge opportunity for our country. We can protect households and businesses from price shocks, we can attract substantial amounts of investment and employment,

and we can set the stage for further growth as we decarbonise our heat and transport – while also building a path towards We start with some sizeable advantages. As a nation we pioneered several of the renewable technologies that have become the low-cost workhorses of a modern energy system. We have an abundance of natural resources, and so the gradual decline of our oil and gas reserves can be more than offset by our substantial wind and solar But to get this right we need to act – and act quickly – because 6 years is a short time in building energy infrastructure. We are not alone in wanting to rebuild our energy system and are competing with other countries for investment and to secure Many of the new investments that will be part of our 2030 power system have already started their journey and a core focus of our work will be ensuring that an ambitious pipeline of new projects with potential to be up and running by 2030 are This plan therefore sets out practical actions across every part of the power system, where we are determined to remove the blockages that have, for too long, added cost and delay to the development process. These actions will accelerate delivery in many of the core generation areas – removing barriers, untangling blockages, and accelerating support. Some of our priorities will not come as a we have to put an end to interminable delays in the system that mean it can take over a decade to develop and build renewables projects. We also need to reform the connections queue process, where the current queue 8 Including Demand. Correct as of end-October 2024. Connections data is published monthly by the Connections Delivery Board. However, we are also acting to raise the level of ambition right across the system, as well as taking action to deliver the industrial supply chains, and the skilled workforce, that we need to build a vast amount of new The energy consumer is at the very heart of Clean Power 2030, because as a government our core aim is making sure everyone has a reliable and affordable energy supply, in a way that protects our environment and quality of life. We also want everyone to have the benefit from the new power sources and technology that can keep This means a real change to how we deliver as a government. We will now be working with specific projects on the ground to understand their ongoing development in detail, and we’ll be ready to do what it takes to keep key investments on track. This also means we’ll be working across traditional department lines, and that we’ll be ready to adapt and learn as we go, developing new actions wherever we need them to Clean Power 2030 supports the wider missions of this government, to make working people better off by delivering economic growth for every part of our country. Clean power also contributes to improving health outcomes for the British people, including through Clean Power 2030 will set in motion an age of electricity. A time where we have an abundance of clean, homegrown energy, backed by a host of British companies in all four corners of the country. It’s about fixing the foundations of our economy so we can protect businesses and families from increased energy bills resulting from volatile global gas markets, give ourselves

a secure energy supply for the long term, and create stable and well-paid new jobs and growth in our manufacturing heartlands.
This is the real story of Clean Power 2030; transforming the way this country invests in

Consumers C P 2030 will protect and empower consumers • Helping to shield consumers from international energy price spikes by reducing our reliance on fossil fuels. • Providing the foundation to build an energy system that can bring down bills for households and businesses for good. • Ensuring communities benefit from hosting new clean energy infrastructure. • Developing more consumer-friendly digital products and services to increase consumer understanding and control over their electricity products, such as apps to manage smart appliances. By increasing the use of digital technologies, consumers can choose to save money on their bills by using appliances when electricity is cheaper or via automated systems managing this on their behalf – for example charging their car overnight and selling excess energy back to the grid, or programming their smart electronic appliances such as dishwashers to complete their cycle within • Increasing consumers’ ability to reduce their global footprint by making green spending and lifestyle choices easier/the default. • Increasing consumers’ energy independence through the rollout of rooftop solar panels alongside domestic batteries, E V charging, heat pumps, and other green technologies to cut down on the cost of bills and to flatten the • Reducing our reliance on fossil fuels, which contribute to air pollution - cleaner air will benefit both human health and wildlife. Business C P 2030 will provide stability for businesses and confidence for investors • Accelerating the transition to clean energy sources to create a more stable environment that helps create growth, minimises energy-price-led inflation and also helps shield businesses from energy price spikes. • Giving developers greater route-to-market certainty through a clear national plan for our power system and reforming our planning and grid connections processes, enabling developers to plan and mobilise the supply chains and workforce they need to deliver new infrastructure, unleashing £40 billion of investment per year. • Maximising domestic opportunities for clean energy supply chains, including mobilising investment into the clean power sector and through the upcoming Industrial Strategy where clean energy industries are a • Stimulating local economies through investment in innovative clean energy projects and accompanying employment opportunities. Workers C P 2030 will help workers • Playing a key part in supporting hundreds of thousands of jobs, as part of the wider transition to net zero • Stimulating skilled new jobs and economic opportunities across the country, including our industrial heartlands. • Boosting awareness of well-paid, high quality jobs in clean energy sectors, in collaboration with the Office for Clean Energy Jobs

The U K ’s dependence on fossil fuels has left us vulnerable to unstable energy prices, a vulnerability that was exposed by Putin’s invasion of Ukraine and saw the electricity price cap increase by over £1,300 in a year, peaking at £2,000 9 Office of Gas and Electricity Markets (Ofgem) (2024), ‘Energy price cap (default tariff) policy’ (viewed in December 2024). £44 billion supporting energy bills between October 2022 and March 2024, the most ever provided to subsidise household bills 10 National Audit Office (N A O ) (2024), ‘Report – Value for Money – Energy bills an update’ (viewed in December . By producing the clean energy we need at home and being more efficient in how we use it, we can boost our energy independence. This transition is the only way to protect businesses and families for good from increased energy bills resulting from By accelerating the switch to domestic renewable electricity sources and accelerating the application of clean electricity to the wider energy system, we will be able to reduce our reliance on fossils fuels faster. This enhances energy security, making the U K less vulnerable to global market disruptions or geopolitical tensions

Central to delivering decarbonisation in the energy system is ensuring it benefits By building a diverse energy system, we can make the most of our abundant natural resources to protect consumers from future price shocks. However, this mission will not be delivered from Westminster alone – local communities, the clean power sector (comprising industry, academia, and investors) and local government also have a key role to play, and we will empower them to participate in and benefit from decisions on local infrastructure. We want to ensure that consumers are supported to make choices that benefit them, which will help us deliver on our net zero ambitions. Market reform and the rollout of flexible technologies will give consumers greater control over their energy bills. For example, consumers might see the impact of Clean Power by installing solar panels which give them greater energy independence or having smart flexible technologies, such as electric vehicles or heat pumps, which enables consumers to take advantage of cheaper tariffs at The government’s Warm Homes Plan will provide help for people, including those from fuel poor households, to live in better insulated homes with the ability to take advantage of these new flexible home heating technologies. When Putin cut off most gas supplies to Europe in 2022, energy prices for families and businesses in Great Britain increased dramatically, even though Russia provided only 4% of our gas 11 B E I S (2022), ‘Energy Trends special article – Energy imports from Russia’ (viewed in December 2024). . Our dependence on globally traded gas for heating and electricity generation was the so long as our energy supply can be weaponised by others, we will remain exposed to global supply shocks and price surges. In an era of heightened geopolitical risk, switching fossil fuelled generation for homegrown clean energy from renewables and other clean technologies offers us security that fossil fuels simply cannot provide. We understand that this is not always a like-for-like exchange. As we aim for clean power by 2030, it is crucial we complement renewables with flexible capacity to ensure we can deliver clean power no matter the weather.
Historically, unabated fossil fuels have provided this flexibility, but that leaves us exposed to the rollercoaster of fossil fuel prices. This Action Plan sets out a pathway towards deploying low carbon flexible capacity technologies like long-duration electricity storage, power carbon capture, usage and storage (C C U S ), and hydrogen to power, working alongside technologies such as nuclear generation, which provide round

Our 2030 mission will grow the U K ’s overall generation capacity and expand our network infrastructure so that we can safely and securely meet changing demand patterns in 2030 and beyond, driven by consumers’ greener choices through the net zero transition. Taking account of this generational change in the U K ’s energy system, we are improving electricity market arrangements to ensure secure supply in a clean system transition, as outlined in further detail in the REMA Autumn Update. As we rapidly deploy new infrastructure, we will maintain high levels of resilience and security – including to severe weather events which are expected to increase in intensity and frequency as a result of climate change, and in managing threats to our national security, such as cyber threats, as our energy system becomes increasingly interconnected. The government has empowered the independent National Energy System Operator with the responsibility to carry out resilience functions across the electricity and gas systems and we will continue to work with industry, regulators and other stakeholders to improve and maintain the resilience of old, new, and Our energy system must meet demand while protecting families and businesses from global supply shocks and volatile prices. That is what energy security means to this government, and that is what this Clean Power Action Plan delivers. Defining the Clean Power target Clean Power means that by 2030, Great Britain will generate enough clean power to meet our total annual electricity demand, backed up by unabated gas supply to be used only when essential. In line with independent advice from the National Energy System Operator (NESO), our clean power target means transitioning to an electricity system with the following characteristics in a typical weather • Clean sources produce at least as much power as Great Britain consumes • Clean sources produce at least 95%12 of 12 See the technical annex for more detail on the definition of 2030 Clean Power. We expect delivering a clean power system with these characteristics will make Great Britain a net exporter of electricity and will reduce the carbon intensity of electricity 13 D E S N Z (2024), ‘DUKES’ (viewed in December 2024). to well below 50gCO2e /kWh in 2030, well within the Climate Change Committee’s 14 Climate Change Committee (C C C ) (2020), ‘The Sixth Carbon Budget’ (viewed in December 2024). visualise this target and set out the current To achieve the mission, we will aim to deliver above this ambition where the system and consumer benefits align so that potential challenges in some areas of clean power delivery can be compensated by Delivering this target aligns with our ambitious 2030 Nationally Determined 15 B E I S (2022), ‘U K ’s Nationally Determined Contribution’ (viewed in December 2024). Clean sources produce at least as much power as Great Britain Emissions intensity of well below 50gCO2e/kWh by 2030 Clean sources produce at least * This is the closest available official statistic to the clean power 2030 definition at the point of publication. This statistic is for the U K rather than Great Britain and includes gas C H P in the denominator and EfW in both the numerator (the proportion assumed to be from bioenergy) and denominator. Official statistics will be reviewed at a future date to allow us to accurately track delivery. Clean sources produce at least as much power as Great Britain Emissions intensity of well below 50gCO2e/kWh by 2030 Clean sources produce at least Clean sources produce at least as much power as Great Britain Emissions intensity of well below 50gCO2e/kWh by 2030 Clean sources produce at least

D E S N Z (2024), ‘DUKES’ The shares of electricity generated are on a U K basis. What a Clean Power system will look like Whilst the expansion of renewables in the power system has reduced the share of fossil routes to a Clean Power system will require mass deployment of offshore wind, onshore 16 NESO (2024), ‘Clean Power 2030’ (viewed in December 2024). 17 B E I S (2023), ‘Electricity Generation Costs 2023’ (viewed in December 2024). The published evidence demonstrates that intermittent renewable electricity sources like offshore wind, onshore wind and solar P V are the cheapest sources of new electricity generation to build homegrown renewables means we will be able to run our power system for increasing periods on low carbon generation, with renewables providing the vast majority of generation, and nuclear continuing to deliver a backbone of vital firm low carbon power. D E S N Z (2024), ‘DUKES’ The generation mix is on a U K basis. However, there will be periods over the year, mostly during winter and autumn, where weather conditions and higher electricity demand mean our fleet of renewables and firm generation alone are not able to meet electricity demand. Many of these periods will only be for a few hours. These short periods offer opportunities for flexible, low carbon solutions to meet our needs. Where renewables alone are unable to meet demand for longer periods, we will enable a suite of technologies to be deployed and maintained to provide longer-duration power capacity. This could be a combination of pumped hydro storage, first-of-a-kind low carbon dispatchable technologies like gas C C U S or hydrogen to power (H2P), or innovative technologies like liquid air energy Whilst deploying of longer-duration technologies will help reduce unabated gas generation, we recognise the importance of gas capacity to maintain security of supply.
We will see a fundamental shift in the role and frequency of unabated gas generation, moving from generating almost every day of the year, to an important backup to be used only when essential, with generation decreasing as we move towards 2030 – see figures 3-5. This is consistent with NESO’s 18 NESO (2024), ‘Clean Power 2030’ (viewed in December 2024). and aligns with the Climate Change Committee’s advice19 that maintaining gas capacity to use as backup is consistent with a fully decarbonised power system. 19 C C C (2023), ‘Delivering a reliable decarbonised power system’ (viewed in December 2024). Firm includes nuclear, hydro, C H P and waste. Weather‑dependent includes onshore wind, offshore wind and solar. Dispatchable includes biomass, pumped hydro, gas with C C S and hydrogen NESO (2024), ‘Clean Power 2030

Firm includes nuclear, hydro, C H P and waste. Weather‑dependent includes onshore wind, offshore wind and solar. Dispatchable includes biomass, pumped hydro, gas with C C S and hydrogen to power. Flexibility NESO (2024), ‘Clean Power 2030’ Firm includes coal, nuclear, hydro, C H P and waste. Weather‑dependent includes wind. Dispatchable includes biomass, pumped hydro. Flexibility is not identified in the historical data. Wind and solar generation are underestimated because they exclude embedded generation and wind farms which do not have NESO (2024), ‘Clean Power 2030

Therefore, the clean power scenarios in range of key roles – variable generation that is renewable, firm generation to meet baseload demand, and dispatchable generation and flexibility for periods of low wind or sun, or higher electricity demand. installed capacity, alongside, NESO’s ‘Further Flex and Renewables’ scenario, and NESO’s Using these scenarios, alongside an assessment of maximum feasible deployment based on current knowledge of the project pipeline, we have developed a D E S N Z ‘Clean Power Capacity Range’, which is a range of possible installed capacities for This reflects that there is no singular path to achieving clean power, but instead, that there are a range of scenarios that could get us there. Over time, there will be more clarity on which scenarios are most likely, depending on the outcomes of negotiations and other contract-award processes, and through monitoring delivery of assets with long lead-times, such as the transmission network, offshore wind, and nuclear. This new information will allow the pathway to 2030 to be refined over time, enabled where needed through prioritising connections offers, helping to determine the precise capacity mix required to deliver Clean Power 2030. Therefore, whilst the ‘Clean Power Capacity Range’ provides a foundation to guide rapid policy development and focus delivery, the scenarios developed now cannot be exhaustive or definitive, and it is only right that some optionality is retained. In the first • Government accepts the NESO advice on the infrastructure required for 2030 – decisions are required now to ensure the grid needed for the system in 2030 can • Government sets ranges for deployment of each technology by 2030 and will maintain some optionality until more clarity on which scenario is most likely is available. The ‘Clean Power Capacity There may be technologies not included in these scenarios that could have a role in providing clean power to the system and we will continue to refine our view on these. For example, biomethane is a domestically-produced low carbon gas currently primarily used to decarbonise heating. Biomethane can be used flexibly across many different end-uses – heat, power, industry, transport, agriculture, and hydrogen production – and it may also be able to contribute to low-carbon dispatchable

‘New Dispatch’ scenarios, and the D E S N Z ‘Clean Power Capacity Range’, compared to current installed capacity (GW) Offshore wind 14.8 51 43 43 – 50 Onshore wind 14.2 27 27 27 – 29 Interconnectors 9.8 12 12 12 – 14 Consumer-led flexibility25 2.5 12 10 10 – 12 20 Latest publicly available data for Great Britain at the point of publication. The data source for renewables is D E S N Z (2024), ‘Energy Trends 6.1’, Q2 2024 data. The data source for nuclear, unabated gas, and L D E S is D E S N Z (2024), ‘DUKES 5.12’, 2023 data. The data source for consumer- led flexibility is NESO (2024), ‘Clean Power 2030 T able 2’, 2023 data. The data source for batteries is Modo Energy (2024), ‘Indices & Benchmarks’, Q4 2024 data. The data source for interconnectors is Ofgem (2024), ‘Interconnectors’, 2024 data. Low carbon dispatchable power includes biomass, power B E C C S , gas C C U S and hydrogen to power. The data source for biomass/ power B E C C S is NESO (2024), ‘Clean Power 2030 T able 2’, 2023 data. Gas C C U S & hydrogen are new technologies so there is no installed capacity at the 21 In addition to the two NESO scenarios, these ranges have been informed by internal modelling and an assessment of maximum feasible deployment based on current knowledge of the project pipeline. Therefore, the range differs from the range of the two NESO scenarios in some instances. However, for solar, there is scope to exceed the 47GW upper limit, subject to system need, noting for example the potential of rooftop solar to boost deployment – see Connections Annex for further details. 22 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. This category includes biomass, power B E C C S , gas C C U S and 23 The low end of the range represents the minimum capacity we expect to have in 2030. There is uncertainty on the amount of biomass capacity that will be on the system in 2030 with some existing support arrangements ending from 2027 onwards. H M G is considering the position on potential future support arrangements, but no decisions have yet been taken.
24 While delivering its Clean Power ambition for 2030, the government’s aim is to ensure there will be sufficient flexible capacity on the system to meet security of supply. This includes retaining existing unabated gas capacity. Dispatch’ scenarios, compared to current installed capacity (GW)

Dispatch’ scenarios, compared to current generation (TWh) Current generation (2023) NESO ‘Further Flex and Nuclear Onshore Wind Offshore Wind NESO (2024), ‘Clean Power 2030’

T otal Industrial and Commercial T otal Road Transport T otal Residential Peak demand is Average Cold Spell (A C S ) peak demand. Peak demand is after smart charging and heat flexibility that occur daily, but does not include V2G and D S R that are less frequently used in the modelling. NESO (2024), ‘Clean Power 2030’ Delivering capacity that aligns with the ‘Clean deployment at a very significant scale and pace, which can only be delivered by taking rapid action to unblock delivery challenges. For most technologies, meeting the ‘Clean Power Capacity Range’ is achievable through delivering and accelerating projects already in the pipeline. Still, these technologies require significant policy action to unblock barriers to ensure timely delivery. Delivering new capacity for 2030 could be more challenging for some technologies with longer lead-times. Clean Power 2030 capacities are most stretching for hydrogen to power and power bioenergy with carbon capture and storage (B E C C S ), due to limited availability of transport and storage infrastructure for hydrogen and CO respectively. The amount of overall capacity required also depends heavily on peak demand, which is driven by consumer uptake of technologies such as electric vehicles and heat pumps, usage patterns, and levels of

To increase our chances of delivery, the ‘Clean Power Capacity Range’ provides a foundation to prioritise the most critical infrastructure to meet Clean Power 2030, which we know will be key to supporting further progress into the 2030s: • Fundamental reform of the connections process is urgently needed to operationalise Clean Power 2030 and ensure the electricity system meets longer-term strategic needs. Our capacity range provides a framework for NESO to work with Transmission Owners and Distribution Network Operators to prioritise connection offers for strategically aligned projects that can demonstrate they have the means to deliver. To enable NESO to deliver efficient reform, we have set out regional breakdowns of our capacity range for onshore wind, solar, and batteries – providing clarity to developers, investors and network operators on what to connect, where. To continue progressing infrastructure required beyond 2030, our Connections Annex also sets out technology capacity ranges that NESO proposes to use as an indication of what is required on the system by 2035, to guide new connection offers until the Strategic Spatial Energy Plan is published in 2026. This will provide a 10-year horizon for connection agreements. These ranges are mostly derived from NESO’s net zero-aligned Future Energy Scenarios (F E S ), with a bespoke and unabated gas. See the ‘Networks and Connections’ section for more detail. 26 We are proposing a bespoke approach for onshore wind because the F E S projections are based on assumed O N W growth rates in England and Wales which pre-date the decision taken by Secretary of State in July to remove the de-facto onshore wind ban. As a result, we have increased the capacity range for onshore wind to 2035 – see Connections Annex for further detail. • Strategic Spatial Energy Our 2030 capacity range is a key input to the development of this Plan, forming its baseline. The S S E P will build from the 2030 capacity range to offer a longer-term spatial plan for the energy system beyond 2030. This will help to ensure strategic coherence between short-term action to deliver 2030 Clean Power and longer-term spatial planning, to enable long-term decarbonisation and • Accelerating clean infrastructure projects through the planning system is critical to achieving our goal and unleashing investment to support the Prime Minister’s Growth Mission. Our capacity range will ensure that planners and statutory consultees at the national and local level have a clear sense of which projects to prioritise for consideration and, where appropriate, fast-track through the process to enable decisions on consent to be 27 Final decisions on planning consent remain subject to meeting necessary planning and other regulatory approvals. consenting for new energy infrastructure’ • Visibility to industry and As a challenging goal, delivery of Clean Power 2030 will only be possible if there is a clear understanding across the sector of what needs to be achieved, and if we offer to investors a clear prospectus of

will require substantial investment across the country, an estimated £40 billion average per year between 2025-2030, much of which will be private investment. 28 Undiscounted, 2024 prices. This includes £30bn investment in generation assets, and £10bn investment in transmission network assets. See the technical annex for more detail on how this was calculated. This broadly aligns with NESO’s investment transforming the way we generate electricity, we will build a power system that is not just cleaner, but importantly less reliant on fossil fuels, thereby reducing our exposure to ‘New Dispatch’ scenarios, 2025‑2030, £ billions, 2024 prices, undiscounted £bn (2024 prices, undiscounted) Transmission network CAPEX Distribution network CAPEX Generation CAPEXOffshore network CAPEX NESO (2024), ‘Clean Power 2030’

In their advice, NESO set out their analysis of potential impacts of delivering Clean Power 29 NESO (2024), ‘Clean Power 2030’ (viewed in December 2024). it could be delivered with similar costs to today, with scope for lower electricity costs and bills by 2030 as wider changes are This plan proceeds on the basis of the NESO analysis. The precise impact we will see on bills in coming years will depend on a range of factors, including the pathway chosen and other policy choices made going forward as well as the impacts of exogenous factors such as gas prices. As set out above, there are multiple capacity mixes that can achieve Clean Power in 2030.
The government will scrutinise every policy choice for the impact it can have in reducing bills facing consumers, as well as value for money and affordability. The new, more flexible consumer-led energy system will also offer many opportunities to lower the bills customers face. We already see individuals with solar panels and E V s taking advantage of these technologies. The government is determined to ensure it is not just those who are the best informed or better off who have access to these ways to save money. That is why rolling out half-hourly settlement, for example, is so important so that consumers have lower tariffs on offer for consumption at Importantly, Clean Power will protect electricity consumers from volatile gas prices. As the electricity system decarbonises, unabated gas generation is used less often. As a result, there will be an increase in the proportion of generation being paid a contracted price rather than the potentially volatile wholesale price, while the wholesale electricity price itself will also be increasingly decoupled from gas prices. As we rollout renewables, we will see a significant reduction in wholesale prices, the foundation for building an energy system that can bring 30 N A O (2024), ‘Report – Value for Energy bills an update’ (viewed in December 2024). 31 B E I S (2022), ‘Electricity networks strategic framework, Appendix 1 – Electricity Networks Modelling’ (viewed in December 2024). During the recent energy crisis, following the invasion of Ukraine, we saw the electricity price cap increase by over £1,300 in a year, peaking at £2,000. To protect businesses and consumers, government put in place energy support schemes at an estimated had been in place at the peak of the gas price crisis, it could have saved significant sums for households, businesses and taxpayers. This is the scale of the prize on offer in terms of stability and energy security. Meeting the Clean Power 2030 goal is key to accelerating to net zero, not only in eliminating emissions that currently come from electricity generation but also via the application of clean power in the buildings, transport and industry sectors. A range of technologies, including electric vehicles and heat pumps, can help us switch away from the use of fossil fuels in these sectors, often improving the efficiency of the energy system The shift to a clean power system by 2030 forms the backbone of the transition to net zero, as we move to an economy much more reliant on electricity. By 2050, annual electricity demand is likely to at least double as a result of electrification. to 2030, most of the emissions reduction from clean power will come directly through displacing fossil fuel electricity generation. By contrast, in the period from 2030 to 2050, the further emissions reductions from

clean power will come indirectly, through its application to displace fossil fuel use in other sectors, for example in boilers and vehicles. The Climate Change Committee estimate in the Sixth Carbon Budget report that a clean power system will nearly eliminate the emissions relating to electricity generation by 2050 (currently 12% of total U K greenhouse 32 D E S N Z (2024), ‘U K territorial greenhouse gas emissions national statistics’ (viewed in December 2024). system will enable transport, buildings and industry sectors to switch from fossil fuels to electricity and contribute 47% of the further emissions reductions required by 2050. However, although electrification provides the most potential for reaching net zero, it is not the solution for every use of energy across the economy, and will need to be supplemented by targeted deployment of C C U S and hydrogen, alongside action outside the energy system. Delivering Clean Power 2030 is the first part of a longer journey and the challenges for the clean power system will change over time, reflecting the greater long-term emphasis on electrification and the opportunity and necessity to deploy technologies with • At least a doubling of Electrification and other needs for clean power as part of net zero are likely to result in at least a doubling of electricity consumption compared to today, with even larger amounts required if there are significant roles for electricity-intensive decarbonisation routes such as green hydrogen and e-fuels for aviation and maritime. This will require strong growth in power generation from a diverse range of clean sources on a sustained basis through the 2030s and 2040s. There is an essential role for innovation on the path to 2030, to ensure the right technologies are supported to progress through technology readiness levels in the coming years, to enable mass deployment in the decades to come. • Nuclear will play an important role in our future energy system, providing low-carbon, baseload power to the grid. Government will continue to seek to streamline regulatory processes, and foster innovation in nuclear technology, to ensure that nuclear continues to play an important role in the net zero transition after 2030. The budget set out that final decisions on Sizewell C and the Great British Nuclear-led Small Modular Reactor programme will be taken • An ever‑smarter As the extent of electrification of the wider energy system grows, so will the opportunity for a huge amount of short-duration consumer-led flexibility through flexible use of electric heating and smart charging of vehicles – promising wider access to smart tariffs for consumers aiming at lowering their bills, and lower system costs for the nation. • More seasonal and spikier While the within-day picture for electricity demand may be quite smooth in the longer term, electrification of space heating for buildings will lead to demand for electricity that is considerably more seasonal than today, and more changeable due to the requirements for heat on particularly cold days.
This suggests a particularly important role for offshore wind in matching demand, as it tends to generate more strongly in the winter than other times of year, as well as low carbon dispatchable power to provide a very long-duration storage solution, including meeting demand during periods that are cold

• Reforming our market Our current electricity markets were largely designed for the fossil fuel-based power system of the past. The Review of Electricity Market Arrangements (REMA) Programme is considering the reforms needed to ensure that our market arrangements remain fit for the renewables-dominated power system • Further need to strengthen Higher, and spikier demand for electricity due to electrification will inevitably require strengthening of electricity networks, particularly at the distribution level. The timing and extent of this will, to some extent, depend on the precise mix of heat decarbonisation solutions deployed. These are all challenges that we need to plan for now in order that the 2030 Clean Power system is fit for its pivotal role beyond 2030 in reaching net zero. Our actions sit alongside a wider framework being developed to lay the foundation for the longer-term plans for the G B energy the Strategic Spatial Energy Plan (S S E P ), Centralised Strategic Network Plan (C S N P ), and Regional Energy Strategic Plans (R E S P s). Integrating clean power and the The world is facing twin climate and nature crises which threaten our global health, wealth and security. These are inextricably linked. The government is committed to accelerating to net zero, to delivering clean power by 2030, and also to restoring nature – for example through its commitment to delivering the Environment Act targets in England and honouring our international commitments under the U N C B D . This will mean halting the decline in species abundance by 2030, and effectively protecting our Marine Protected Areas as part of the global The U K is one of the most nature depleted countries in the world, so it is not enough for us to “protect” or “conserve” the nature we still have left. This is why this Government has committed to restoring nature through such targets, and our related Climate change is itself one of the greatest threats to nature in the years ahead, which is why one of the most important things we can do to protect nature is deliver clean power by 2030 - tackling the U K ’s dependence on fossil fuels and driving international climate action. Equally, nature is a key ally in helping us tackle the climate crisis, both through mitigation and adaptation. We should therefore ensure delivery of our climate and nature targets wherever possible, in an integrated and joined up way. This means ensuring habitats like peatlands store rather than emit greenhouse gas emissions; or restoring salt marshes and sea grasses so that they are sequestering carbon as well as protecting

our coastal communities from rising sea levels and extreme weather. This means that new energy infrastructure should be built in a way that protects the natural environment by following a “mitigation hierarchy” to do what is possible to avoid damage to nature, and then minimising, restoring and delivering compensation when damage is impossible to avoid. The real opportunity available to the U K is to deliver clean power by 2030 in a nature positive way, such as rewetting lowland peat soils at the same time as constructing new solar farms or creating new wildlife corridors alongside or underneath linear energy infrastructure. This approach is not so much about “balancing” energy and the environmental needs; it’s about integrating them. It’s about rebuilding our natural infrastructure at the same time as building the new energy infrastructure we need. Government will launch an engagement exercise in early 2025 to invite communities, civil society and wider stakeholders to submit their ideas on how government can best encourage nature‑positive best practice into energy infrastructure planning and development. Feedback from this exercise will allow government to better understand how we can integrate nature restoration through

With 90% of global G D P covered by net zero targets34 34 Climate Action Tracker (C A T ) (2023), ‘C A T net zero target evaluations’ (viewed in December 2024). represent a significant potential growth area. These industries can generate new jobs through domestic manufacturing and services and preserve our Energy Intensive Industries in a decarbonised economy. Additionally, the only way to guarantee our energy security and protect billpayers permanently is to speed up the transition away from fossil fuels and towards homegrown clean energy. By accelerating the transition to renewable energy sources, we are creating a more stable environment that is conducive to growth and minimises energy price led inflation. This stability is crucial for businesses, as it helps ensure that energy bills stay low, and allows them to plan and invest with confidence, knowing that they will not be subject to the volatility of fossil fuel prices. If gas price spikes occurred even once every decade, it could cost the U K between 2-3% of G D P annually, adding 13% of G D P to public debt by 2050 35 Office for Budget Responsibility (O B R ) (2023), ‘Fiscal Risks & Sustainability’ (viewed in December 2024). Another of the key benefits of Clean P ower 2030 and the scale up of clean energy sectors is the creation of new job opportunities in locations across the U K , particularly in coastal regions for offshore wind farms and in regions like the North West of England and North Wales for hydrogen production and carbon 36 whilst also supporting industrial jobs. 36 C C C (2023), ‘A Net Zero Workforce’ (viewed in December 2024). As we invest in the development of wind, solar, and other renewable energy projects, we will see a surge in demand for skilled workers in these industries and the industries and services that support their deployment.
Reskilling our workforce will play a crucial role, with evidence suggesting a high degree of transferability between the U K ’s oil and gas workforce and the offshore renewables sector 37 Robert Gordon University (2023) ‘Powering up the workforce’ (viewed in December 2024). This will not only provide employment opportunities but could also stimulate local economies and drive innovation 38 Zenghelis et al. (2024), ‘Boosting growth and productivity in the United Kingdom through investments in the sustainable economy’ (viewed in December 2024) and C C C (2023), ‘A Net Zero Workforce’ (viewed in December 2024). . Studies have shown that green jobs tend to provide increased productivity and higher wages than non-green jobs, especially for middle and lower skilled workers 39 C C C (2023), ‘A Net Zero Workforce’ (viewed in December 2024). . A significant proportion of these jobs are expected to be in the energy efficiency and low carbon heating sector40 40 C C C (2023), ‘A Net Zero Workforce’ (viewed in December 2024). jobs are also expected in low carbon energy, C C U S , hydrogen and electric vehicle Decarbonising the U K economy could reduce regional inequalities, creating new jobs and supporting existing jobs in industrial heartlands and preventing decline in areas dependent on the oil and gas sector. For example, according to E D F 41 E D F (2024), ‘Socio-economic Impact Report 2024’ (viewed in December 2024). Hinkley Point C project is helping young people stay and thrive in Somerset. The local area has seen a 25% growth in young people aged 25-39 – 3 times greater than the national average and local areas seeing a growth in the number of medium- sized companies that is ten times higher than anywhere else in the South West 42 E D F (2024), ‘Helping Britain achieve net zero’ (viewed in December 2024). The Scottish Government has invested in a package of skills interventions in the North East of Scotland, supporting the transferability of the workforce across sectors to meet the needs of the net zero transition. This includes an Energy Skills Transition Hub and National Energy Skills Accelerator. There are also opportunities for the U K to capture more of the value chain for key clean energy industries and the potential to drive inward investment in domestic supply chains. In Spring, the government will publish the new Industrial Strategy, with Clean Energy Industries as a priority growth sector. Clean Power 2030 will be a major step towards realising an ambition of a clean, contemporary, digitalised energy system based largely on electricity, to be developed further in later years as part of decarbonising the whole economy. For energy consumers and citizens this will be a transformation in their relationships Just as it has in so many other sectors before, such as banking, media, and retail, digitalisation will pave the way for a consumer-led transformation of the energy system, characterised by new business models, firms, and markets. While this will gain momentum in the period to 2030, it will continue to do so far beyond that date, as part of decarbonising the whole economy. Lessons from other sectors are digitalisation can increase consumer choice, bring down costs for everyone, and lead to the development of more consumer- friendly products and services. Importantly for the energy system, this digitalisation will simultaneously unlock transformation of the demand side, a critical part of the energy system in the move to clean power and one which has been historically overlooked, failing to serve the

The system of the future will give consumers choice over how they engage, ranging from little change to today, through to being able to benefit from bill discounts thanks to smart tariffs. They will be able to engage physically by using appliances when electricity is cheaper or via automated systems managing this on their behalf. These would control how major appliances like car chargers, heat pumps, water heaters, washing machines/dryers, and fridge/freezers use their electricity to take advantage of low prices within the day and integrate the outputs of any residential generation such as rooftop P V , and household energy stores, potentially including the battery in your electric car. The government is clear that engagement with these systems will be entirely voluntary, led by consumers. Under the previous government, consumers were offered the option to take advantage of different tariffs at different times. The evidence was that consumers were enthusiastic about the possibilities should not be a choice just given to the most informed consumers but to all. That is what the system of the future is about. 43 NESO (2023) ‘Household engagement with the Demand Flexibility Service 2022/23’

Boosting industry and transforming local economies with clean, After the grid was first consolidated from 1926-33, energy became a lot cheaper, and this had a beneficial impact on industry 44 Butler (2001), ‘The nature of U K electricity transmission and distribution networks in an intermittent renewable and embedded electricity generation future’ (viewed in December 2024). In the same manner but on a much larger and more transformative scale, Clean Power 2030 will catalyse a new era of renewable energy for new ventures previously held back by the price of fossil fuels. It will ensure that the benefits of clean power are spread throughout the country, driving new investment and industry into local places and communities. For example, enabling the development and growth of new energy intensive industries such as These changes will have a profound impact on people’s livelihoods, as they bring with them new, higher value, future-proof jobs and employment. Creating a fairer, more equitable energy system Clean Power 2030 will create the conditions needed to drive investment in, and scale, locally led, owned and managed energy developments.
Local leadership will be empowered to play a more active role in delivering the transition – for example, through partnering with and providing support to community energy groups and local and combined authorities, G B E ’s Local Power Plan will support the rollout of renewable energy projects using established technologies to contribute up to 8GW Communities and the people who live in them and the businesses that serve them, will see clearer links between local projects, and local benefits. For example, the U K ’s first hospital-owned solar farm has not only contributed to the daily power needs of Morriston Hospital in Swansea, but also covered 100% of its demand for prolonged periods of time, helping save carbon and bills. Through its Community and Renewable Energy Scheme, the Scottish Government supports the growth of community energy and helps communities engage in and benefit from the energy transition. T o date, the Scheme has advised over 1200 organisations and provided over £67 million in funding to communities throughout Scotland, supporting over 960 projects and the installation of 63 MW of Building trust, knowledge and confidence to support household Enabling truly local energy led by local citizens, businesses and local leaders will also play a vital role in citizen engagement, with local developments and business models in some cases representing the first real, ‘tangible’ occasion that local people can learn about and experience renewable energy. These experiences will help to grow public trust and knowledge. Greater visibility and demystifying of renewable energy at the local level across Great Britain will support electrification right down to the level of the individual household, providing citizens with the confidence to adopt low carbon technologies, keeping us on track for our wider net zero targets beyond 2030. Delivering Clean Power 2030 will require reforms to the overarching structures that underpin delivery and operation of the energy system, to ensure they do not act as blockers to deployment of clean We need to make sure that consenting regimes work to bring new projects through the system at pace, that the network expands rapidly so that our vast supply of clean electricity can be transported to centres of demand, and that the underpinning supply chain and workforce are available and capable to ensure this We also need to ensure that the market works in tandem with support schemes to deliver the right investment signals, and that any sector-specific barriers to deployment are appropriately addressed, to enable the huge volume of deployment that will This section of the Action Plan sets out how government will ensure this is delivered, with • Planning and consenting for new energy • Renewable and nuclear project delivery • Reforms to electricity markets

Our current planning systems across Great Britain are not working at the pace required to meet our target for clean power by 2030. Planning systems are devolved and the regimes vary across Scotland, England and Wales, although similar problems are encountered in each. Lengthy paperwork and often-delayed processes for infrastructure projects hinder our energy security, our economic growth, and fails to deliver for the natural environment. The increased risks to projects associated with delays in planning decisions also increase costs Our planning system needs to quickly change to enable government’s missions to grow the economy and deliver clean power. Since July, the government has taken decisive steps towards making planning work better for clean power and economic growth. We’ve lifted the de facto ban on onshore wind in England and have committed to updating our National Policy Statements. We must go further. Processes are not suitable nor are examining authorities well-equipped to deal with the increase in new clean power projects and wider infrastructure that we expect in the coming years to achieve government’s missions. There is particular urgency to accelerate the planning process across Great Britain for energy infrastructure since we do not have long for many clean power projects to begin construction if they are to be operational for 2030, especially networks and offshore wind developments. The urgent need for change means we must undertake a wide‑ranging reform programme, encompassing not only deep changes through primary legislation over the course of this Parliament, but to also get moving with operational and regulatory reforms across the system within the next year. Therefore, to enable 1. We will equip organisations across the planning system with the tools they need to help deliver Clean Power 2030 and government’s wider missions, including the Planning Inspectorate, statutory consultees, local planning authorities, and government consenting teams. We will enable them to better flex and prioritise their resource so that they can examine mission-critical projects faster. To complement these more immediate changes, we will deliver workforce reform, enhanced training, and reformed career development packages for certain organisations involved in the planning system. We will review resourcing in key organisations to determine whether they are suitable for handling an increased number of projects in the coming years, including the Planning Inspectorate and departmental consenting teams. The Clean Power 2030 Unit will assist planners by convening early engagement between stakeholders for 2. We will update the National Policy Statements for Energy and Planning Policy Guidance in 2025, and we have confirmed changes to our National Planning Policy Framework to reflect the needs of Clean Power 2030, improving policy certainty for developers and examining authorities. 3. We will undertake an ambitious programme of legislative reform, including through the Planning and Infrastructure Bill. Building on the reforms in the Nationally Significant Infrastructure action plan 45, we will introduce legislative changes to update the N S I P planning system in the Planning Act 2008 in England and Wales for all infrastructure projects. We will also reform the legislative framework for electricity infrastructure consenting in Scotland, where there is executive devolution but where legislation under the Electricity Act is reserved for Westminster, to deliver a streamlined and efficient framework that is fit for purpose.
We will explore reforming Judicial Review processes following recommendations 45 Department for Levelling Up and Housing Communities (D L U H C ) (2023), ‘Nationally Significant action plan for reforms to the planning process’ (viewed in December 2024) e will ensure that the protection of nature is embedded into the delivery of Clean Power 2030, including by delivering the Marine Recovery Funds for Offshore Wind, and using development to fund nature recovery where currently both are stalled. The U K government and Scottish Government are exploring a separate Marine Recovery Fund for projects in Scotland

5. We will ensure communities directly benefit from clean energy infrastructure they host by building upon existing approaches and encourage consistency in community benefits across technologies. 6. The Scottish and Welsh Governments have implemented programmes of planning reform which support the delivery of clean power. We are working closely with both the Scottish and Welsh Governments to accelerate reform further to deliver for 2030. 46 NESO (2024), ‘Clean Power 2030’, (viewed in December 2024). 47 Internal D E S N Z estimate informed by stakeholder engagement. 48 Internal D E S N Z estimate informed by stakeholder engagement. The projects we need for Clean Power 2030 need to begin construction soon. Advice from the NESO indicated that there are enough projects in the pipeline for most technologies, but delivery of the pipeline would require accelerated rates of planning pace in the planning system is essential to support effective delivery of the connections queue and wider actions enabling Clean Power 2030. Though construction timelines for clean power technologies vary, it is clear we must act urgently to get them through the planning system, while also delivering positive outcomes for nature • Most new transmission network and offshore wind projects will need all permissions for construction by 2026 if they are to be operational by 2030 with current construction timelines • New onshore renewable and battery projects typically have shorter construction timelines, but most large-scale projects would likely still need to receive consent by around 2028 • For much of the firm generation, low carbon-flexibility and unabated gas that we need to underpin a clean power system we have identified the pathways for delivery for 2030 and are working towards accelerating them, but we need to ensure the judicial and wider permitting processes work to reflect the critical Our planning reform programme for larger scale energy infrastructure will need to be tightly coordinated. Terrestrial and Marine planning regimes are either fully or executively devolved. The delivery of energy infrastructure in Great Britain is split between interacting systems that differ between nations, with varying roles for central, local, and devolved governments. Some of the planning reforms referenced in this plan relate to consenting in England (and Wales for large N S I P s) while others will affect Scotland given that elements of the legislation governing parts of the Scottish planning and consenting regime are reserved to Westminster. In addition, there are a range of actions also underway in NESO will be delivering the Strategic Spatial Energy Plan in 2026 to enable long-term planning of the energy system out to delivering Net Zero by 2050. We also need a long-term, holistic approach to managing growing demand for use of the seabed. The Crown Estate’s Marine Delivery Routemap will provide an opportunity to positively plan

for shared outcomes across different sectors with an agreed set of design parameters that incentivise best environmental practice across the project lifecycle. This will encourage development areas to be brought forward in the right locations that avoid the most vulnerable areas of biodiversity. For the planning and environmental reform package to facilitate Clean Power 2030, changes will need to be made that cut across many different areas, involving multiple organisations, including developers, supply chains, and investors. The different systems with different requirements and obligations across the planning landscape are complex and were not designed to deliver at the speed and volumes now required of them. Pre-application Pre-examination Post-decisionAcceptance Examination Decision T C P A follow a slightly different process. Planning Inspectorate (2024), ‘Decision Making Process Guide’ It takes a long time for Nationally Significant Infrastructure Projects (N S I P s) to receive a consenting decision, with ever increasing volumes of information being dealt with at each stage, leading to delays and pressure for all parties. The timespan for Development Consent Orders is intended to be less than two years but can go well beyond this, and the documentation underpinning consents has been getting longer and in too many instances now runs to tens of thousands of pages. Increased litigation has caused delays and introduced additional risk and costs for

developers. A large number of infrastructure projects are expected in the next 3 years49, and change is needed to meet the urgent need set out in the NESO advice for significant numbers of projects to progress to construction in the next 6-24 months. 49 Prime Minister’s Office, 10 Downing Street (2024), ‘Plan for Milestones for mission-led government’ (viewed in December 2024). infrastructure, decisive reform is also urgently needed to deliver clean power . In England, planning applications with local authorities under the T own and Country Planning Act can sometimes take up to 12 months to receive a decision 50 D E S N Z analysis based on the Renewable Energy Planning Database (R E P D ). a four-month limit on energy infrastructure projects which require an Environmental Impact Assessment. Currently, the National Planning Policy Framework (N P P F ) does not make clear that local planning authorities should consider the benefits associated with renewable energy generation, and proposals’ contribution to meeting a net zero future when determining applications for these developments. The Planning Practice Guidance for renewable energy, which adds further detail to the policy contained within the N P P F , contains outdated guidance which requires updating to reflect new policies.
There are also challenges in the planning process for low carbon electricity infrastructure in Scotland, which differs from the systems in England and Wales. These challenges are delaying investment in critical infrastructure and are costly to consumers. Government has run a consultation on proposals for reforming the consenting processes in Scotland under the Electricity Act 1989 and working with the Scottish Government, timely implementation of the results of the consultation process We need to accelerate transformation of the system, building on the work set out in the N S I P Action Plan. In February 2023, the then government published the N S I P Action Plan which outlined five key reform areas to help make the N S I P planning system better, faster, greener, fairer and more resilient. Following on from this, changes to the N S I P system were implemented in Spring 2024 with the introduction of legislative amendments to key infrastructure planning legislation and new infrastructure planning guidance. We recognise previous reforms to the system are yet to be in full effect and will make a positive difference, like the designation of low-carbon nationally significant energy infrastructure projects as ‘Critical National Priorities’ through the energy National Policy Statements. However, existing reforms still do not match our ambition for Clean Power 2030, and so we must go further – using all tools Our planning reform programme for energy infrastructure will need to be tightly coordinated. The delivery of energy infrastructure in Great Britain is split between interacting systems that differ between nations, with varying roles for central, local, and devolved governments. For the planning and environmental reform package to facilitate Clean Power 2030, changes will need to be made that cut across many different areas, involving multiple organisations, including developers, supply chains, and investors. The different systems with different requirements and obligations across the planning landscape are complex and were not designed to deliver at the speed and volumes now required of them. We will equip examining authorities with the tools they need to help deliver Clean Power 2030 and government’s We can unblock bottlenecks by improving resource, particularly shortages of critical specialisms, which are often noted as a main cause of statutory consultees’ reasons for planning application deadline 51 D E S N Z (2023), ‘Hydrogen planning barriers and solutions – research findings’ (viewed in December 2024). delayed responses to planning applications from the Environment Agency were due 52 Environment Agency (2024), ‘Environment Agency’s planning consultation response 2023 to 2024’ (viewed in December 2024). England have said the same for over 80% of the time they need to extend a deadline for 53 Natural England (2023), ‘Natural England’s response times to planning consultations in England’ (viewed in December 2024). consultee, Historic England, have seen a 39% decrease in expenditure on heritage services in Local Planning Authorities in planning 54 Historic England (2024), ‘Proposed reforms to the National Planning Policy Framework and other changes to the planning Consultation Response – September 2024’ (viewed in December 2024). of developments. Reform of the planning system includes a need to better employ key skills and resource across a variety of bodies, which can be managed through targeted interventions and streamlining the system. We are expecting an increase in planning applications with the Clean Power 2030 target, providing further challenges than those the planning system is already experiencing. T o manage this • We will expand cost‑recovery mechanisms across relevant regimes to ensure that all organisations key to consenting have sustainable resourcing models which can match the demand of projects in the system into the future, to help deliver Clean Power Inspectorate and statutory consultees give to developers through the planning process, particularly at the • We will review resourcing in key organisations to determine whether they are suitable for handling an increased number of projects in the coming years. To ensure resource is making the most impact, we will drive operational efficiency in statutory consultees, to speed up consultation and examination timelines. Alongside a review of resourcing, we will establish new performance standards for all public-sector organisations, including central government teams, the Planning Inspectorate, statutory advisors, and local planning authorities; in addition to improving guidance and support for the • We plan to reform planning resourcing for the longer term, including supporting existing strategies such as working with universities and skills providers to strengthen the intake of planners required for all infrastructure building. Additionally, we will look at options for attracting and retaining key specialists, such as through reviewing entry

• We will boost local planning capacity including wider programmes of support, working with partners across the planning sector to ensure that local planning authorities have the skills they need both now and in the future. The government has announced a £46 million package of investment into the planning system to support capacity and capability including the recruitment and training of graduate and apprentice planners to support the • We will consider enhancing the quality standards energy N S I P applications must meet in order for their applications to be accepted into the regime and publish best practice to help prevent resource being used unnecessarily in addressing issues with low quality or incomplete applications. Projects submitted to the Planning Inspectorate should be of a high quality, following best practice and guidance. Through constructive, early engagement with statutory consultees, and timely provision of information and evidence, developers will be able to better meet the • The Clean Power 2030 Unit will convene nature, communities and industry groups on complex projects in order to encourage and facilitate a high standard for projects, and stress-test them prior to application to identify any problems with input from across the planning system.
This could enable an expedited pre-application process and help ease the burden on a system We will update our national policy vehicles to reflect the needs of Clean Power 2030 Generally, where policy, legislation and guidance leaves room for doubt, examiners and decision-takers may adopt a more cautious approach to consenting and developers will lack clarity on what is required for their application to succeed. This results in added time, process and results in delays, and may open the door for more legal challenges post-decision. T o address this, for N S I P • We will update National Policy Statements for energy in England. The Chancellor announced a 12-month review of National Policy Statements (N P S s) in July 2024. We will update our N P S s so that the Planning Inspectorate and other organisations involved in examining projects are given the clarity they need to provide robust advice on infrastructure critical in delivering Clean Power 2030; • We intend to take powers through primary legislation to ensure that N P S s are updated every five years through a quicker and easier process, giving increased certainty to developers and • We are reintroducing onshore wind into the N S I P regime at a new threshold of 100 MW and are altering the existing threshold for solar to 100 MW. This will ensure the planning system is efficient with appropriate routes available that are proportionate to a project’s scale, impact For local planning policy in • We have ended the de facto ban on onshore wind development, and have now published our consultation response confirming changes to the National Planning Policy Framework (N P P F ); • We will update the Planning Practice Guidance in 2025 to provide clarity on the application of planning policy for renewable and low carbon development to support the updates to N P P F in practice. This will help local councils in developing policies for renewable and low carbon energy and identifies the

planning considerations associated with a We will undertake legislative reform We must reform the planning system, so it works better for energy projects and wider infrastructure for the long term beyond 2030 too. We will need to continue delivering new clean power infrastructure at pace after 2030 to keep up with increasing electricity demand. Government recognises the need to more strategically plan its long-term infrastructure needs and it needs the planning system to be responsive to this. • We will bring forward a Planning and Infrastructure Bill with measures to streamline the delivery of critical infrastructure in the planning process. The Bill will introduce new measures to prioritise and streamline the delivery process for critical infrastructure through the planning process, including accelerating upgrades to the electricity grid and boosting renewable energy which will benefit local communities. These proposed changes will move us away from a position where vital new infrastructure is being unnecessarily delayed whilst ensuring that it is sustainable, responsible and maintains high environmental and Since our proposed primary legislation is not a quick-fix and will be too late for some projects that are critical for • We will review secondary legislation and other legal requirements (like licences) regarding the planning process for energy infrastructure to establish relevant changes to speed up delivery of projects for Legal challenges to D C O s can create significant delay to the delivery of N S I P s in England and Wales. Judicial review is a constitutionally important mechanism which allows an individual or organisation to challenge the lawfulness of a D C O decision in court. However, there is a case for reviewing the process to identify ways in which it can be streamlined to ensure it does not unduly slow down vital infrastructure development. Most legal challenges against D C O decisions are unsuccessful, but it can take many years for the courts to reach the decision, and hear further appeals in higher courts, leading to uncertainty and delays. Delays to new infrastructure can increase costs to consumers where constraint payments to operators are required. • We will explore reforming the judicial review process for N S I P s following Lord Banner’s recent independent report. We have published a call for evidence on judicial review reform following this report which is due to close at the end of this year. The call for evidence is seeking views on Lord Banner’s recommendations and invites suggestions on other options for reform to reduce delays to infrastructure projects in England and Wales. We intend to legislate at the earliest convenience for any desired changes requiring primary legislation following the call for evidence. For example, this could include changing the rules so that claimants in each case only have one attempt to seek permission for judicial review. Any changes that we decide to make will strike the right balance between reducing delays to infrastructure projects and maintaining access to justice in line with our domestic and international legal obligations. In Scotland, the recent consultation on reforms to electricity infrastructure consenting sought views on creating a unified and streamlined system for challenging the decisions of Scottish Ministers, taken under the Electricity Act

We will ensure that the protection of nature is embedded into the delivery of Our existing planning system is built on solid foundational principles. Our policy and legal frameworks were originally developed to ensure the timely delivery of vital new infrastructure and other development, whilst ensuring communities hosting infrastructure are fairly treated and the natural We know that the status quo is not working when it comes to delivering the nature and infrastructure we need. The poor state of our natural environment means that there is often insufficient environmental headroom to allow developments to come forward without significant costly intervention. Applicants can struggle to navigate or satisfy environmental requirements and conditions on habitats, species and protected areas.
A lack of clarity for industry from government and statutory consultees, a low-risk appetite from developers, and at times a reluctance from developers to engage with environmental requirements or deliver quality applications can slow down the delivery of much-needed All this can lead to lengthy case-by-case negotiations of mitigation and compensation measures with statutory consultees, and extensions to decision deadlines. Once consent is granted, developers must often meet ‘post-consent conditions’ whereby construction cannot start until the conditions are met. T o embed the protection of nature in energy developments, actions will • We are considering how to use development to fund nature recovery unlocking a win‑win outcome for the economy and for nature – as set out in the King’s Speech, we are working with nature delivery organisations, stakeholders and the sector to consider how we can better support the delivery of housing and infrastructure whilst driving better environmental outcomes; • We will undertake measures to reduce pressures on protected sites including through expansion of the Protected Sites Strategies in priority areas in England. Protected sites face several pressures inhibiting their recovery. This gives rise to development constraints when sites are in unfavourable condition, even if a new development is a small contributor to the overall problem. Reducing pressures on protected sites will help to ease some of the constraints addressing the environmental impacts of • We will publish our roadmap to Outcomes Reports in consultation with devolved government, introducing an outcomes-based approach will provide the certainty developers need to embed environmental considerations into the earliest stages of the project. This will allow stakeholders to focus on delivering for the environment rather than guarding against the risk of legal challenge which will reduce costs and delays from unnecessary work. The roadmap will include our approach to implementation to ensure a smooth transition for • We will establish industry‑funded Marine Recovery Funds into which applicants can pay to discharge their compensation obligations, underpinned by libraries of approved strategic

compensation measures. The U K government are engaging with the Scottish Government with a view to reaching agreement on the establishment of, and the delegation of appropriate functions to operate and manage, a separate Marine Recovery Fund for projects in Scotland. The Offshore Wind Environmental Improvement Package (O W E I P ) as a whole will accelerate and de-risk the consent of offshore wind projects whilst continuing to protect the • We will consider options for environmental data and modelling used for assessing impacts of offshore wind projects on species and habitats to provide consistency in assessments. Standardised methodologies and inputs to models and data standards could be developed allowing developers access to harmonised, coherent public data, reducing disagreements between developers and Statutory Nature Conservation Bodies (S N C B s), and helping to shorten the pre-application timelines for all future projects; • We will consult on reforms to the environmental permitting regime to better enable Clean Power 2030, and ensure that environmental regulators have the powers and evidence to promptly develop the pollution standards required for the permitting of emerging • We will explore strategic approaches to managing environmental pressures around industrial clusters which engages effectively with the planning and permitting systems. This will help to enable cluster decarbonisation within environmental constraints and address emerging issues prior to projects entering the planning system; • We will launch a public engagement exercise in early 2025 to invite stakeholders to submit their ideas on how government can best encourage nature‑positive best practice into energy infrastructure planning and development. Feedback from this exercise will allow government to better understand how we can integrate nature restoration within Clean Power 2030. Our reform programme to deliver clean power infrastructure will keep nature at its heart. Whilst we want to accelerate infrastructure delivery, project developers must be clear that government expects them to continue delivering for communities and nature. We are not writing a blank cheque for low quality applications that fail to consider We will work towards communities benefit from hosting new clean energy To realise our ambitions of becoming a clean energy superpower, some communities will see an increase in the amount of new energy infrastructure being built in their area. We must ensure that we bring all communities with us on this journey to Clean Power 2030. Maintaining public support is vital to the delivery of clean energy ambitions in Great Britain, and those asked to host energy infrastructure should feel tangible benefit from the role their areas play in building a low-cost electricity system 55 NESO (2024), ‘Clean Power 2030’ (viewed in December 2024). Community benefits are already delivered on a voluntary basis in some sectors across Great Britain (e.g. solar and onshore wind), but this is not consistent across sectors and locations. Government wants to ensure that all communities hosting infrastructure receive high quality benefits in a consistent manner. We will ensure that communities directly benefit from clean energy infrastructure they host, and continue to explore how to do so. This will build on existing approaches to community benefits within the onshore wind sector, on which government intends to publish updated guidance for England in due course, and the work that Solar Energy U K have been taking forward to develop industry-led guidance for solar energy projects. In the interim, the government plans to publish new guidance on voluntary community funds so that communities benefit in a fairer, more ambitious and consistent way from new onshore electricity transmission Scotland is taking further action to improve the resourcing of the planning system. The Scottish Government’s consultation on Investing in Planning set out of proposals aimed at increasing the capacity of the planning system in Scotland – the Scottish Government is now progressing a range of actions following the consultation. which set out a range of proposals aimed at increasing the capacity of the planning system in Scotland.
Following the consultation we are now progressing a range of actions The U K and the Scottish Government share the view that the consenting regime for larger scale electricity infrastructure in Scotland is not fit for purpose. Delays are caused by inefficient and outdated features of the existing legislative framework. The U K government, with the support of the Scottish Government, agree that the most pragmatic route to speeding up the deployment of low carbon electricity infrastructure is to reform the existing legislative framework. We will seek powers to reform the current legislative framework for electricity infrastructure consenting in Scotland, with changes deployed by the Scottish Government. The Electricity Act 1989 could, and remove inefficiencies, whilst giving communities and statutory consultees meaningful opportunities to influence The U K and Scottish Governments have worked together closely on reforms to electricity infrastructure consenting in Scotland referenced above. The recent consultation gathered evidence on a package of proposals which would help to streamline the existing outdated system in Scotland, which will encourage investment and acceleration towards our Additionally, with specific regard to consenting for offshore electricity infrastructure, the Scottish Government has been actively engaged with the U K government in the development and implementation of the reforms being delivered via the Offshore Wind Environmental Improvement Package under the Energy Act 2023, which will enable more efficient regulation of adverse environmental impacts arising from Scottish offshore wind developments. The Scottish Government also continues to pursue a continuous improvement approach to Scottish consenting processes through its Consenting Streamlining Unit, implementing more streamlined procedures where beneficial. The Welsh Government has recently taken action to accelerate their infrastructure planning decisions. Immediate action has including enabling Planning and Environmental Decisions Wales (P E D W ) to take decision on energy projects up to 50 MW, and prioritising applications for Developments of National Significance which have the greatest public benefits. Longer term, the Infrastructure (Wales) Act sets out the new consenting process for significant infrastructure projects in Wales both on land and in the territorial 56 Welsh Government (2024), ‘Implementing the Infrastructure (Wales) Act 2024’ (viewed in December 2024). . This replaces multiple existing consenting processes with a single process. It will provide confidence and certainty in the decision-making process which is underpinned by clear policy that strikes the right balance between the need for infrastructure projects to help combat climate change whilst respecting our They have produced a consultation paper on development of a resilient and high performing planning service, including proposals for funding, performance monitoring, and increasing staffing skills 57 Welsh Government (2024), ‘Promoting a resilient and high performing planning service’ (viewed in December 2024). Our grid infrastructure needs strengthening. Failure to do so risks holding back our energy security, economic growth and other important infrastructure with lengthy delays. Across many walks of life, people see grid infrastructure as a massive In truth, Great Britain’s electricity network must undergo unprecedented expansion, as the economy electrifies, to deliver decarbonisation, energy affordability and energy security, and support economic growth. T o connect new generation and meet future demand, around twice as much new transmission network infrastructure will be needed in Great Britain by 2030 as has been delivered in the past decade 58 NESO (2024), ‘Clean Power 2030’ (viewed in December 2024). In addition to relevant cross-cutting actions on planning, supply chains, and skills we will take action to deliver the network we need at the right Fundamentally reforming the connections process T O s and D N O s to prioritise viable projects that align with the Clean Power 2030 Action Plan. Without these critical reforms, the queue will not align with our strategic needs and the projects we need will be delayed. Regulatory reform to ensure that the Clean Power 2030 target is better integrated into planning and investment decision making, enabling investment in networks ahead of need. This includes working with Ofgem to explore the appropriateness of tightening the incentives and penalties to drive the acceleration of network build- Improving networks planning and consenting to provide the levers to accelerate the expansion and upgrades required across our transmission and distribution network to ensure energy infrastructure can support the delivery of the 2030 target. Engaging with communities to enable them to benefit from living near new transmission network infrastructure. Urgent action is required to ensure that the grid we need is in place for the connection of low-carbon generation and electrification of sectors such as transport, heating, and industry. Network build must be accelerated to address annual constraint costs, which are projected to increase without action from the already high level of around £2 billion 59 National Grid E S O (2022), ‘Monthly Balancing Services Summary’ (viewed in December 2024). 60 Undiscounted, 2022/23 prices. (or £80 per household per year) in 61 D E S N Z (2023), ‘Community benefits for electricity transmission network government response’ (viewed in December 2024). to network build persist. This cannot be Network constraints occur when the electricity system is unable to transmit power to electricity users because the maximum capacity of the circuit is reached. Constraint costs arise when NESO has to manage this problem by paying generators to reduce (turn-down) their electricity output in areas that are congested and switch on (turn-up) in locations closer to electricity users. Work is required to significantly reduce the end-to-end delivery time for new transmission infrastructure. In the 62 D E S N Z (2023), ‘Independent Accelerating electricity transmission network Electricity Networks Commissioner,s recommendations’ (viewed in December 2024). (Advisory Commissioner to the Clean Power 2030 Mission), he set out recommendations to halve timelines from 14 to 7 years, starting with strategic spatial planning of energy projects which would allow the network to be planned holistically ahead of need.
Winser was clear that ambitious interventions were needed across every stage of the delivery process and government is working with delivery partners to drive the necessary change, including Ofgem, NESO and the network companies, who play a crucial role in delivery of new infrastructure on the ground. To deliver a decarbonised power system by 2030, we will need to build on Winser’s recommendations, going further and faster where necessary, to ensure the network we need is in place in time. NESO’s Clean 63 NESO (2024), ‘Clean Power 2030’ (viewed in December 2024). 80 transmission projects they identified as required to achieve clean power by 2030, including both upgrades to existing infrastructure and new transmission lines, are already in existing strategic network plans 64 NESO (2024), ‘Clean Power 2030’ (viewed in December 2024). Of these, there are three with delivery dates post 2030, which we know need to be accelerated. Delivery of the full list of projects to such a short timeline is an unprecedented challenge. Government and the Clean Power Advisory Commission will work closely with partners to monitor delivery of individual projects and identify targeted interventions to accelerate delayed projects where necessary, including through prioritisation in the consenting process. Wherever renewables can connect to the distribution network, this should be encouraged for reasons of speed and efficiency. The distribution network is also in need of reform and, whilst it is less constrained than transmission level, large amounts of distribution-connected renewable

generation and storage will need to be accelerated to achieve the 2030 target. Significant reinforcement and build out of the distribution network will also be required to support the electrification of sectors projected for the decades ahead, as well as to accommodate new demand in some locations for growing infrastructure and industrial uses, such as data centres and In addition to those actions set out in this chapter, delivery of network infrastructure will rely on actions outlined elsewhere in this Action Plan, notably the interventions being developed by the Office for Clean Energy Jobs to secure a workforce with the right skills to deliver Clean Power, resourcing and reforming planning and consenting for energy infrastructure, and supply 88 wider works to bring benefits to the whole transmission system* For meeting clean power target and reducing constraint costs Must be delivered by 2030 to meet clean power NESO (2024), ‘Clean Power 2030’ * These are wider transmission network reinforcements – they may not include all works, for example, works driven by connection enabling works, operability etc. Over the last five years, the grid connection queue has grown tenfold, and now contains an equivalent capacity of 739 GW Many of these projects are speculative or do not have the necessary funding or planning permission to progress, causing unacceptable connection delays for viable projects behind them. Fundamental reform of the connections process is critical and urgent – without it, the projects we need for Clean Power will not be able to connect on time. 65 Including Demand. Correct as of end-October 2024. Connections data is published monthly by the Connections Delivery Board. We also need to accelerate towards net zero and ensure timely connections for demand including an increasing volume of low carbon technologies such as E V charge points and heat pumps, as we electrify ‘Further Flex and Renewables’ and ‘New Dispatch’ scenarios (GW) (including current installed capacity) Other includes biomass, unabated gas, coal, oil and other fuels for current installed capacity. 2030 capacity figures refer to unabated gas only. ’ & NESO (2024), ‘Clean Power 2030’

The queue is currently managed on a ‘first come, first served’ basis which does not consider the required ‘mix’ of energy projects (e.g. solar, wind) or where this mix is best located. As such, we do not have the levers to ensure an optimised future energy system across all regions of Britain that responds to local energy planning as well as To meet our 2030 ambition, we must act now to rationalise the queue and accelerate the projects that are critical to our goal. This means going beyond previous plans to remove slow-moving or stalled projects from the queue and prioritise based on readiness alone. These actions are still needed but to achieve Clean Power 2030, technological and locational factors need to be considered in the connection process so the right projects can connect in the right place at the 66 This Action Plan can now provide 66 See the connections reform annex for further detail on regional breakdowns of technology capacities. By removing unviable projects, re-ordering the queue, and accelerating connection timescales for the projects we need most, £billions of much-needed investment in of the wider economy – investment that has 67 D E S N Z & Ofgem (2023), ‘Connections action speeding up connections to the electricity network across Great Britain’ (viewed in A strategically aligned connections process will also bring inherent efficiencies in network design, planning, and build, and provide long-term confidence not only for investors in renewable energy, but also for all demand sectors that will depend on clean energy for electrification (from data centres – including Intelligence) – and gigafactories, to E V s and heat pumps), as well as related supply chains and the jobs these will create. Government, Ofgem, NESO and network companies have been working at pace 68 D E S N Z & Ofgem (2024), ‘Open letter from D E S N Z and Aligning grid connections with strategic plans’ (viewed in December to strengthen existing ‘first ready, first connected’ proposals and NESO has now 69 NESO (2024), ‘Connections reform consultation’ (viewed in December 2024). that will enable it to filter the queue and prioritise connections using strategic plans, starting with capacity ranges for generation technologies required for clean power by 2030 that are laid out in this Action Plan.
• Work with NESO and Ofgem to change the grid connections process to operationalise the Action Plan, by providing a framework through which NESO can work with Transmission and Distribution Operators to prioritise aligned projects, resulting in updated offers being issued before the end of 2025. Further detail on this is set out in the connections reform annex of this publication. We will introduce legislation, when parliamentary time allows, to ensure connection reform aligns with strategic energy and network plans and supports delivery of clean • Subject to Ofgem’s approval, additional flexibilities will be included in the reformed connection process to manage project attrition and over- or under-supply. For example, projects that go beyond the 2030 pathway for a technology but are aligned to the relevant 2035 pathway will still be eligible to connect before 2030 where there is spare capacity, after all 2030 pathway projects have been assessed. NESO will also be able to make substitutions of the same technology

between zones to manage over- and under-supply, where this does not cause To avoid impacting projects whose development is already well advanced, NESO has proposed that any project that has been awarded a Contract for Difference or Capacity Market contract, an Interconnector or Offshore Hybrid Asset Cap and Floor agreement, Merchant Interconnector approval, or has secured planning permission as a Nationally Significant Infrastructure Project or via relevant T own and Country Planning Acts (including through devolved governments’ planning regimes), will be included in the new reformed connections queue provided they have also met the will also use the publication of the S S E P in 2026 to examine the mix of technologies and consider whether capacity reserved for undersupplied technologies should be released for other technologies. 70 NESO (2024), ‘Open letter on connections reform’ (viewed in December 2024). All parties involved must work at pace to secure swift and positive resolution of the reform process and explore all opportunities for faster implementation so that customers can received updated connection offers as soon as possible in 2025. In line with updating connection offers, the T Owners will review and where necessary revise enabling and local works to comply with the requirements of the Security and Quality of Supply Standard. NESO also plays a role in ensuring overall compliance of the Through its Accelerated Strategic Transmission Investment (A S T I ) framework, Ofgem has prioritised the timely delivery of 26 large-scale strategically important transmission projects for delivery ahead of, or by, 2030. Of these, NESO have indicated that 21 need to be delivered by 2030 to deliver the Clean Power Plan. Delivery incentives apply to all 26 A S T I projects and Ofgem is building on this approach in future price controls for networks, which will be adaptive to efficiently fund additional build requirements. Timely delivery of these key projects remains very challenging and delivery incentives may need to be stronger to encourage ambition by the • Amend the Strategy and Policy Statement (which sets out government’s strategic priorities that Ofgem must have regard to) to ensure 2030 clean power and broader decarbonisation goals are sufficiently weighted in decision making to approve strategic investments by network companies at an earlier stage. • Work with Ofgem to explore the appropriateness of tightening incentives and penalties for Transmission Owners and Distribution Network Operators for delivery of strategically important network infrastructure. We will also work with Ofgem to ensure all incentives and penalties are robustly enforced. Networks planning, land rights Accelerating transmission and distribution network build required for 2030 is heavily dependent on the capacity of the planning system and wider reforms to planning and environmental requirements for all new energy infrastructure. This includes better resourcing of the planning system, reforms to consenting for energy projects in Scotland, and prioritisation of electricity networks projects in the consenting processes in England and Wales. Further details on these measures can be found in the Planning and Consenting for New Energy At the distribution network level, current land rights processes in England and Wales can take between 2 to 4 years, which can lead 71 Energy Networks Association (E N A ) (2023), ‘Common sense plan for planning’ (viewed in December 2024). undertaken by the previous government found that both network operators and landowners believe reform to these 72 D E S N Z (2024), ‘Land rights and consents for electricity network summary of responses’ (viewed in December 2024). government will consult and engage in 2025 exemptions to include low voltage connections and upgrades, including upgrading single phase to three phase overhead lines (with voltage remaining the same) by amending the Section 37 regulations as they apply in • Opportunities to provide further flexibilities on the consenting of The National Policy Statement for Electricity Networks Infrastructure (N P S -E N 5) sets out the government’s position on undergrounding, which is that there is a starting presumption for overhead lines for large network projects. The exception to this is in nationally designated landscapes, where undergrounding is the starting presumption. This position takes into account factors including cost and environmental impacts, and the government’s view is that this sets an appropriate balance between overhead lines To bring communities with us, we will need to better engage and provide assurance to communities and ensure they benefit from living near new onshore energy infrastructure. This government believes that it is a vital principle that communities that host clean energy infrastructure should To recognise the vital role of communities living near new onshore transmission network infrastructure, government will deliver a strong package of community • Publish voluntary guidance to increase the quantum and consistency of Community Funds for transmission networks.
This guidance will detail the recommended level of benefit, scope, eligibility, delivery costs, and the role of To improve understanding of the need for new transmission infrastructure and better set the context for discussions with communities on new projects, the government • Support the launch of a public communications campaign developed by industry with government support, to encourage public awareness on the importance of networks infrastructure in supporting net zero. This will be launched

These actions, alongside ongoing work of the government and our delivery partners, including Ofgem, NESO, and the Transmission Owners, will further accelerate networks projects that are critical to achieve 2030 Clean Power and reduce constraints on the network. They will ensure that communities benefit from hosting network infrastructure, reform the grid connections process to ensure timely connection for generation that is ready and is required for Clean Power 2030, and ensure that the network is ready for increasing electricity demand and continued development of low

Setting up Great British Energy is one of government’s first steps for change, putting the U K on the path to become a clean energy superpower. Great British Energy will be 100% owned by the British people, for the Our new publicly-owned energy company is designed to drive clean energy deployment to boost energy independence, create jobs, and ensure U K taxpayers, billpayers and communities reap the benefits of clean, home- grown energy. Great British Energy’s project development and local power functions will help support the Clean Power 2030 mission, including through the development of up to 8 GW of local and community energy projects. We will continue to see its impact after 2030, ensuring we can meet future demand as we further decarbonise the economy out to 2050. Great British Energy will benefit all four nations, and we are working hard to ensure its functions can complement the green energy initiatives across Scotland, Wales and Northern Ireland, creating jobs and building supply chains across the U K , while respecting the devolution settlements. Achieving our shared net zero targets, having greater control over our own energy resources, and increasing our energy independence are challenges for the whole of the U K , and this is an excellent opportunity to learn from each other’s expertise and experience. We are making rapid progress in establishing Great British Energy. In July, we published Great British Energy’s Founding Statement, which set out its five project investment and ownership; project development; supply chains; the Local Power Plan; and Great British Nuclear. We also announced Juergen Maier as the start-up Chair, alongside G B E ’s first major partnership with The Crown Estate. Since then, Great British Energy has announced its Aberdeen headquarters and made key policy decisions, including plans to collaborate with the National Wealth Fund to accelerate investments. And finally, we have secured £125 million in funding for 2025/26 so that G B E can start its important work to drive forward clean energy This is just the start. Great British Energy will be capitalised with £8.3 billion over the current Parliament. Through its five functions, the publicly-owned company will help to create a better investment offer for privately-owned energy companies and international investors who will continue to play a significant role in our transition to an affordable, decarbonised power sector. Electricity generated by renewables and nuclear power will be the backbone of a clean electricity system by 2030. Actions set out in other chapters, to lower barriers to planning and environmental consent, electricity network connection, and access to necessary supply chains and workforce will go a long way to increasing deployment of renewable technologies. However, even with success in these areas, there are outstanding and specific barriers that we face to deploy the renewables needed for a clean power system in 2030. There are also hurdles facing our nuclear fleet and the scaling up of emerging renewable technologies. To lower and remove these, we Improve the way Contracts for Difference are allocated, particularly for Allocation Round 7 (A R 7), to support clean power delivery and ensure it can procure the capacities needed to hit the target. Coordinate the interaction between wind turbines and civil aviation and defence infrastructure, working to find mitigation solutions and unlock deployment of planned offshore and onshore wind projects. Leverage Great British Energy and deploy further policy measures to increase the rollout of local and community generation, including for homes, businesses, public buildings and land, and shared spaces. Manage assets reaching the end of existing government support terms to minimise any capacity that may be lost before 2030, including through supporting repowering through the Contracts for Difference scheme. Work with E D F to support the delivery of Hinkley Point C and support the development and technology readiness of emerging clean technologies that will play an important role beyond 2030. 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 Current installed capacity compared to the D E S N Z ‘Clean Power Committed / under construction is defined as projects that have secured a Contract for Difference (CfD) but not yet become fully operational. For onshore wind and solar P V , ‘merchant’ (non-CfD) capacity that has not yet deployed has not been counted. Any pre-2030 asset retirements are not considered in these estimates. Renewable technologies will form the foundation of our clean power system, and we need to see very significant deployment to make this a reality. Meeting the renewable capacities set out in the D E S N Z ‘Clean Power Capacity Range’ is achievable, but will require deployment at a sharply accelerated scale and pace. This can only be delivered by unblocking delivery challenges throughout the development lifecycle. Accelerating delivery is exceptionally critical for offshore wind, where lead times for projects are often more than a decade 73 D E S N Z (2023), ‘Seizing Our Independent Report of the Offshore Wind Champion’ (viewed in November 2024).
This means that all that can be deployed by 2030 has either already been consented or is in the development and consenting process. Procurement and final investment decisions of these projects will need to be in place over the next 1-3 years. There is greater potential to bring new onshore wind and solar projects forward and deliver additional capacity beyond what is already planned by 2030, due to shorter 74 D E S N Z (2023), ‘Electricity generation costs 2023’ (viewed in December 2024). . But again, many 2030 projects are likely to already be in various stages of development, and final investment decisions on these projects will still need to be made Actions in this chapter, alongside cross-cutting enablers set out in other chapters, will support the delivery of renewable generation projects by de-risking the existing pipeline, accelerating new projects through the pipeline, and maximising the potential of existing capacity as assets Nuclear power will also play a key role in achieving Clean Power 2030 and beyond by providing low-carbon, baseload Improving the way that Contracts for Difference are allocated to support 2030 The Contracts for Difference (CfD) scheme is the government’s flagship policy for incentivising new low carbon electricity generating projects in Great Britain. The CfD and its predecessor investment contracts have seen around 9 GW of renewables start generating under them already, with a further 26 GW contracted to become 75 L C C C (2024), ‘CfD Register’ (viewed in December 2024). Though the CfD has delivered substantial volumes of renewable capacity over the to deliver any offshore wind, which was a massive setback for industry and meant consumers were left more exposed to fossil fuel markets. We need consistency of success and scaling up to protect customers and meet Clean Power 2030. There is currently around 31 GW of either constructed or contracted offshore wind capacity. This will need to rise to 43-50 GW in 2030. The government will therefore seek to secure at least 12 GW across the next two to three allocation rounds – A R 7, A R 8 and, depending on the speed at which projects deploy, A R 9. This government has shown its ability to get the offshore wind sector back on its feet. While A R 5 secured 0 GW of offshore wind, A R 6 supported over 5 GW, at a price that was cheaper to build and operate than new fossil fuels. The government will ensure it secures the right volumes of offshore wind at It is also the case that industry has long been calling for CfD reform to remove some of the uncertainty and give greater line of sight to support industrial strategy. That is why the government is developing

targeted reforms to the CfD mechanism to ensure it is able to support the volume of new capacity – in particular, fixed-bottom offshore wind – needed to deliver the renewable contribution to the Clean Power 2030 target whilst continuing to minimise the costs of doing so to consumers. Subject to further assessment, including of the merits, feasibility and any further consultation where relevant, for A R 7, the government is currently • A relaxation of CfD eligibility criteria for fixed‑bottom offshore wind projects to permit projects that have not yet obtained full planning consents to participate in near-term allocation rounds. This would award CfDs at an earlier stage in the offshore wind development cycle compared to the current model. Coupled with wider reforms, this could improve competition and enable earlier supply • Changes to what information the Secretary of State uses to inform the final budget for fixed‑bottom offshore wind, to avoid a repeat of A R 5 and cost effectively maximise the volume of capacity that could be contracted from each round. This includes providing greater visibility over sealed bid information for the Secretary of State ahead of finalising the budget, so that there can be more certainty on how much capacity a given CfD budget will procure. • An auction schedule, including capacity ambitions for upcoming allocation rounds, to improve transparency and predictability in the timing and scale of • A review of auction parameters, including our approach to Reference Prices (estimates of the average G B market price for electricity) used to estimate the budgetary impact of projects bidding into allocation rounds. The government recognises industry concerns and feedback about Reference Prices and the implications for CfD budgets and is seeking to ensure these concerns are balanced with our strong ambitions for the power sector for Alongside increased certainty around the auction and the potential capacity it can secure, the government is also considering changes to CfD contract terms that would give longer market certainty once contracts are awarded, including consideration of the merits of increasing the current 15-year CfD term to reduce overall project costs. The department intends to consult on this in early 2025, and to move ahead, would need evidence that this was in Given the level of investment required, the government recognises the need to ensure that reforms provide stability and confidence to the sector, including the supply chain, and are delivered in a timely way. The government will consult on reforms in early 2025 ahead of the next allocation round, with a view to implementing any changes in time for Allocation Round 7 to open In addition to these proposals, there are wider measures that contribute further to ensuring the CfD mechanism is fit for purpose, including the Clean Industry Bonus (see the ‘Supply chains and workforce’ chapter) and reforms to the network charging regime in time for future CfD allocation rounds (see the ‘Reforms to electricity

Coordinating the interaction between wind turbines and civil aviation and Wind turbine generation must be done in a way that does not interfere with aviation and defence surveillance systems. At present, requirements are placed on proposed onshore and offshore wind projects that are 76 Internal estimate based on stakeholder engagement.
The identification and implementation of interim and enduring solutions to this long-standing problem is therefore critical for The government has been working with the Offshore Wind Industry Council via a Joint Taskforce to drive collaborative agreements, seeking to find solution(s) so that offshore wind and military radar infrastructure can coexist now and in the future. The Onshore Wind Industry Taskforce has established its working group on aviation and defence to The Ministry of Defence (MoD) has launched Programme Njord, which will work with colleagues from D E S N Z , The Crown Estate, Crown Estate Scotland, the devolved governments and the Offshore Wind Industry Council to identify, procure and implement a mitigation to resolve this problem for The full costs of the long-term radar mitigation solutions identified by Programme Njord will be funded via an alternative route, delivered by government, and the funding requirement is therefore removed from For onshore wind development which impacts military aviation, D E S N Z and MoD are working at pace to seek an • D E S N Z and the Department for Transport are working with the Civil Aviation Authority and the aviation industry to agree a transparent and fair process to • The Onshore Wind Industry Taskforce is exploring the best specific approach, and will set out further detail to mitigate civil radar objections in the upcoming The Eskdalemuir Seismic Array is a facility in southern Scotland monitoring global nuclear activity. Wind turbines produce seismic ground vibrations which can compromise the Array. To safeguard the Array, MoD manages a finite seismic noise capacity to prevent compromising the detection capabilities of the Array. Scottish Government, MoD and D E S N Z are collaborating to implement an updated approach to managing onshore developments around the Array. approach to safeguarding the Array, and following further work being undertaken by MoD the Scottish Government will consult on its development management guidance for new onshore wind projects in the Eskdalemuir consultation zone. This will include a proposal on how onshore wind can be maximised within the array’s • The Onshore Wind Industry Taskforce will continue to examine these issues and will report by Spring 2025, covering a range of issues from supply chains and skills, to

Great British Energy Project Development Developers are facing high risks, rising costs, and lengthy delays to energy projects developed in the U K , slowing down our rate of deployment. Alongside process change, the U K needs significant delivery acceleration in order to meet Clean Power 2030. G B E will accelerate the delivery of onshore and offshore clean energy projects by leading or co-leading (alongside public and private sector partners) projects through the pre-development phase and, in some cases, construction and operation – getting shovels into the ground quicker and improving U K energy security through publicly-owned energy projects. • On private land, G B E will align with NESO’s publications and the government’s response to identify locations for new generation projects where additional capacity is needed to support the U K ’s spatial and wider energy system needs. G B E will work in partnership with the private sector to deliver these opportunities and provide a service that is additional to the market, maximising geographical opportunities • G B E will also undertake development on public land, unlocking additional scope for generation capacity on government-owned estates to support decarbonisation, including in partnership with the private sector. G B E will seek to work with government to access the land and actively partner with government landowners who will host generation assets and provide power directly to public buildings, in addition to connecting Developing on both public and private land will support large-scale generation capacity in key strategic areas of the U K , improving system efficiency and accelerating the

Unlocking local and community energy Much of the generation capacity that will be deployed by 2030 is likely to come from large-scale, commercial energy infrastructure. However, local and community renewable energy will also play a vital role in delivering our ambitions, contributing to the capacity mix on an aggregate basis, delivering significant local benefits and reducing network system losses by bringing generation supply closer to electricity demand. Local and community power generation can contribute significantly to the prosperity of local places, driving down electricity bills, encouraging people to engage with the green economy, providing energy resilience, and promoting skilled jobs. • That is why one of G B E ’s five functions will provide support to deliver the Local Power Plan, putting local authorities and communities at the heart of restructuring our energy economy. G B E will partner with, and provide funding and support to Local Authorities, Mayoral Combined Authorities, Community Energy Groups and others, as well as working with and through the devolved governments, to roll out local and community energy projects (mainly onshore wind and solar) to develop up to 8 GW of clean power in England, Scotland, Wales and Northern Ireland in support of the Clean Power Alongside the work of G B E , government is also taking specific actions to remove barriers to, and further the deployment of, local energy. These will support deployment In homes and local There is great potential for rooftop solar installation across the U K ’s warehouse and industrial sectors. Research commissioned by U K Warehousing Association (U K W A ) indicates that the U K ’s 20% largest warehouses alone can provide 75 million square metres of roof space, and all warehousing roof space has the potential to support up to 15 GW of rooftop 77 U K Warehousing Association (U K W A ) / Delta Energy & Environment (2022), ‘Investment case for rooftop solar power in warehousing’ • The Solar Taskforce has examined government and industry actions that can unlock this potential through its rooftop subgroup and will publish the Solar New standards will be introduced next year which will amend the energy efficiency standards in the Building Regulations in England.
This will ensure all new homes and buildings in England are zero-carbon ready, meaning they will become zero-carbon when the electricity grid decarbonises without the need for any retrofit work. The Future Homes and Buildings Standards consultation was published in December 2023 and closed in March 2024. It set out detailed technical proposals for what future standards could entail, including proposals relating • We are reviewing proposals and feedback from the consultation and will publish the government response As part of the government’s Warm Homes Plan, we are considering the role that finance may play in supporting homeowners with the upfront costs of energy efficiency improvements, solar panels, and installing

• Solar can be a cost-effective way to lower energy bills for fuel poor households, especially when paired with the adoption of a heat pumps, and is an eligible measure in existing programmes like the Warm Homes Local Grant and Warm Homes Social Housing Fund. We will provide further details on how else solar could be supported in the Warm Homes Plan after the second phase of Outdoor carparks provide potential to deploy solar canopies providing clean electricity, potential for electric vehicle charging and shelter for cars. Following the implementation of a new permitted development right to allow for the installation of solar canopies in non-domestic off-street carparks in England, it is now easier and quicker to deploy • The government will assess the potential to drive the construction of solar canopies on outdoor carparks over a certain size through a call for Finally, the National Wealth Fund’s local authority advisory and lending function has a £4 billion capitalisation. It commercial and financial advisory services to help local authorities undertake ambitious projects with confidence; and, lending on flexible terms at a market leading rate to local authorities who are developing projects, including in the Managing assets reaching the end of The U K -wide Renewables Obligation (R O ) scheme was introduced in 2002 for G B (2005 for Northern Ireland) and it currently supports around 30% of the U K ’s electricity 78 Ofgem (2024), ‘Renewables Obligation (R O ) Annual Report 2022-23 - (Scheme Y ear 21)’ (viewed in December 2024). . It is made up of three separate but complementary obligations covering England and Wales, and Scotland and Northern Ireland, and it closed to most new entrants in 2017. The Scottish Government runs the Renewables Obligation Scotland Scheme and we are working with them as we look forward to the next stages of the R O . From 2027 onwards a large volume of renewable assets will stop receiving R O support. In total, across the G B R O schemes, around 1,000 active R O generators at approximately 9 GW of capacity will be reaching the end of subsidy by December 79 Ofgem (2024), ‘The Renewables and C H P Register’ (viewed in December 2024). . If these assets retire early, the renewable deployment required to achieve Clean Power 2030 targets and C B 6 would have to increase to replace this lost • We have surveyed existing R O generators to gather site-specific evidence on future plans and are conducting further analysis to inform possible policy options to • We have already made a decision to enable access to the CfD for repowered onshore wind from Allocation Round 7 80 D E S N Z (2024), ‘Consultation Proposed amendments to Contracts for Difference for Allocation Round 7 and future rounds’ to ensure there is a route to continued generation for projects that require significant capital investment to continue • We are also implementing wider measures that will support the repowering and life extension of renewable assets, including through planning policy and through Ofgem’s work on Offshore Transmission Owner (O F T O ) asset

existing low‑carbon firm & Sustainably sourced biomass can be used as a low carbon fuel for renewable an important role in Clean Power 2030 by providing flexible or firm generation. Last year, biogenic sources of electricity, including conventional biomass, anaerobic digestion and biogenic energy from waste provided nearly 34TWh (equivalent to 25% of all U K renewable electricity and 12% of overall 81 D E S N Z (2023), ‘Biomass Strategy’ (viewed in December 2024). 82 D E S N Z (2024), ‘DUKES’ (viewed in December 2024). Support arrangements for a variety of large and small-scale biomass generators (including biogas technologies) conclude by consulted on future support for large-scale 83 D E S N Z (2024), ‘Transitional support mechanism for large-scale biomass electricity generators’ (viewed in December 2024). considering whether there is a strong value-for-money case to provide future support for these generators. Any future support would need to have greater protection for consumers and would be subject to robust sustainability criteria. No decisions have yet been taken; however, we plan to respond to the consultation shortly. Large scale biomass plants also have the potential to transition to power B E C C S . This carbon capture technology can combine the conversion of sustainable biomass, biogas and biogenic wastes into electricity while capturing a high percentage biomass in long-term storage in geological sequestration.
Large scale power B E C C S has the potential to support low carbon electricity and deliver negative emissions, helping to balance residual emissions from Nuclear will play a key role in achieving Clean Power 2030 in the United Kingdom and our long-term net zero objectives by providing firm, low carbon baseload power at scale to generate alongside intermittent

Type of reactor(s) Capacity Status 1.1 GW Online – currently expected to Hartlepool Advanced gas-cooled 1.2 GW Online – currently expected to 1.2 GW Online – currently expected to 1.2 GW Online – currently expected to 1.2 GW Online – currently expected to Hinkley Point C European pressurised 3.2 GW Construction – expected to come To help deliver Clean Power 2030, government will work with E D F to support the delivery of Hinkley Point C, with Unit 1 scheduled for completion between 2029 and 2031, enabling consumers to benefit from the project’s generation as soon as possible. E D F have also confirmed they will be further extending the lives of the four generating Advanced Gas-cooled Reactor (A G R ) stations, following inspections and regulatory approvals. This means that two of the A G R fleet, Heysham 2 and T orness, are expected to be generating and providing The impact of these activities could be significant in helping ensure a reliable supply of low-carbon electricity, reducing greenhouse gas emissions, and supporting the overall decarbonisation of the power sector. However, there are uncertainties associated with having Hinkley Point C online by the end of the decade, given delays in the As set out in the Budget, the government is also progressing the post-2030 generation interventions, with final decisions on Sizewell C and the Great British Nuclear-led Small Modular Reactor programme to be taken at the Spending Review. The government will continue to seek to streamline regulatory processes, and foster innovation in nuclear technology, to ensure that new nuclear continues to play an important role in the net zero transition after 2030. We also acknowledge the policy of the Scottish Government is not to support new nuclear Emerging renewable technologies Whilst emerging renewable technologies, like floating offshore wind and tidal stream, are expected to play a limited role in the 2030 energy mix, our ability to deploy them at scale could be important to the U K ’s achievement of longer-term decarbonisation objectives. For example, floating offshore wind could unlock the ability to take advantage of the strong winds at deeper water depths, providing additional capacity as our seabed becomes increasingly constrained. Emerging technologies could also provide broader system benefits,

including by enabling renewables deployment in a wide range of locations or power generation that is uncorrelated with other energy sources, such as tidal stream. In addition, early investment in the deployment of emerging technologies like floating offshore wind could provide wider economic benefits and export opportunities 84 The Crown Estate (T C E ) (2024), ‘Supply chain for Celtic Sea floating wind farms could power 5,000 new jobs and a £1.4bn boost for the economy’ (viewed in December 2024). Workforce chapter sets out further detail on how government is realising these benefits, such as through the Floating Offshore Wind Manufacturing Investment Scheme. The U K already has the world’s largest pipeline of floating offshore wind projects based on confirmed seabed exclusivity, including around 25 GW already in development in Scotland. The Crown Estate has made available seabed capable of supporting up to a further 4.5 GW in the Celtic Sea, and the partnership announced between G B E and The Crown Estate will bring forward new offshore The government will continue to work with the industry to identify ways to support the development of innovative new renewable generation technologies to ensure that they can play the necessary role in the U K ’s long term energy mix. The government response to the consultation on amendments to the Contracts for Difference scheme announced that floating offshore wind projects successful in future allocation rounds would be granted the ability to build out in up to three phases, providing developers more flexibility in the construction phase 85 D E S N Z (2024), ‘Contracts for Difference for Low Carbon Electricity Generation, Government response to the consultation on policy considerations for future rounds of the Contracts for Difference scheme’ (viewed in December 2024). Wealth Fund will also continue to explore opportunities to finance nascent renewable generation projects, seeking to mobilise private capital into them and enable final investment decisions to be reached. We expect the actions set out above, delivered alongside cross-cutting enabling actions in other chapters, will set the framework for the delivery of renewable and nuclear deployment needed to meet the 2030 clean power capacity range. But there will be further action required to get these projects over the line, and the Clean Power 2030 Unit will continue to work across government, the devolved administrations and industry to ensure the implementation of This includes through the ongoing work of the Offshore Wind Industry Council, the Solar Taskforce and the Onshore Wind Industry Taskforce, and through addressing delivery risks for renewable projects as they emerge (see the below case study as an example). In the devolved nations, work is also underway to deliver this G B -wide target, with actions such as the Scottish Government’s forthcoming Solar Vision, whose commitments will enable greater deployment • The Solar Roadmap and the Onshore Wind Industry Taskforce report will both • Consultation on relevant reforms to the Contracts for Difference scheme will be • The consultation response on the Future Homes and Buildings Standards will be

• Further details on the Warm Homes Plan will be announced after the second • A call for evidence on the potential to drive solar canopies on carparks over a certain size will be issued next year. • The consultation response on proposed transitional support for large-scale biomass will be published in due course.
Case Management of emerging risks for project Wake effects occur when wind turbines disrupt airflow to other turbines and reduce the energy production of those projects. New projects with larger and/or a greater number of turbines have an even greater propensity to cause wake effects on existing downstream operational projects. Historically, this has been resolved outside the planning system, but a precedent was set with a wake condition in the 2023 Awel y Mor Development Consent Order, which said “No part of any wind turbine generator shall be erected as part of the authorised development until an assessment of any wake effects and subsequent design provisions to mitigate any such identified effects as far as 86 Statutory Instrument (2023), ‘Infrastructure The Awel y Môr Offshore Wind Farm Order 2023’ (viewed in December 2024). As we radically accelerate the deployment of offshore wind in the U meet our 2030 target, we understand the uncertainty that this emerging issue has introduced both on operational windfarms and those in development, including the approximately 10 GW of pre-2030 offshore wind capacity currently in the planning system. The Clean Power 2030 Unit would look to convene expert opinions from planners, engineers, academics, project delivery, data scientists and policy to understand the levers we can pull in this space, working with stakeholders like The Crown Estate, Crown Estate Scotland, the Planning Inspectorate, O R E Catapult and industry to gather the data and build an evidence base, looking for comparison mitigations with international partners and other industries. Reforming our electricity markets Delivering Clean Power by 2030 requires an ambitious and actively planned approach from both government and business. Action is needed to shape and enable effective markets. This approach is central to the development and operation of the 2030 system and will only grow in importance as the system becomes more distributed and flexible in 2030 and beyond. T o be successful in delivering clean • Support investor certainty by ensuring wholesale market reforms, as being developed under the Review of Electricity Market Arrangements (REMA) programme, are delivered quickly and progress towards delivery is communicated clearly. We will do this – Publishing a REMA update alongside this 2030 Action Plan to provide further clarity on how our future electricity market might be designed;

– Committing to a decision across the REMA programme by around mid-2025 and in time for the next CfD allocation round (A R 7); and – Supporting interim measures from NESO and Ofgem, in the balancing market and on T N U oS respectively, whilst the REMA programme is completed. • Reform the Capacity Market to provide clear and viable routes to decarbonisation for unabated gas, enable low-carbon flexible capacity, including consumer-led flexibility to increase its contribution to security of supply, and incentivise investment into existing capacity. • Accelerate reforms to balancing markets, maintain system operability and reforms to network charging to ensure that the electricity system can be operated securely and cost effectively. • Unlock the full potential of consumer‑led flexibility through timely delivery of Market-wide Half Hourly Settlement in the retail market The measures set out in this chapter seek to bring forward investment in low-carbon generation and flexibility while driving efficiencies in market operation. The proposals below address the more immediate challenges in our electricity system and will work alongside our ongoing efforts to drive the rollout of low-carbon generation and transition away from unabated gas generation while maintaining While the state must play a role as system architect, markets are, and will, remain central to the development, delivery, and operation of the power system. It is widely accepted that the set-up of our electricity market with associated regulation and incentives needs to adapt to the future shape of our renewables-dominated power system. This need to adapt is recognised in the range of reform programmes and measures being undertaken by government, including REMA, which is considering the enduring market arrangements which are needed for the The delivery of clean power by 2030 needs to proceed at pace whilst we ensure that electricity markets are redesigned for the long term. Given the impact that market reforms will have on the long-term future of our energy system, it is crucial the potential reforms are properly and robustly considered. We recognise that in order to invest and build at the scale and speed necessary to deliver our 2030 target, the government must provide investors with greater clarity on short term risks, and long-term outcomes from policy and market changes. Therefore, this chapter sets out a clear way forward and timeline on this programme of work, together with the accompanying REMA update published

We have identified four key areas which require action and a clear direction of travel, to enable the delivery and maintenance of a clean power system by 2030. Some of these actions require additional policy development, while other areas require the acceleration of existing reforms to resolve existing challenges in the market. • Setting a clear direction of travel for • Reforming the Capacity Market • Accelerating reforms to balancing markets, maintaining system operability and reforms to network charging • Reforming the retail market to deliver Setting a clear direction of travel for Government seeks to reduce the uncertainties arising from policy and regulatory change as much as possible, to minimise the extent of policy and regulatory risks, which can be a significant barrier to investment. We have considered a wide range of options for wholesale market reform. Alongside this Action Plan, the government has published an Autumn Update on REMA providing greater clarity on the status of the different longer-term options for market reform. It is clear that “no change” is not an option in any scenario. We have narrowed down policy development to improve locational and operational signals to two sets of zonal pricing (where the single electricity wholesale market is split into several zones) and retaining national pricing alongside a range of reforms to its existing arrangements.
Whilst no decision has yet been taken between zonal pricing or reformed national pricing, and both options are under equal consideration, significant progress on narrowing down the options has been made, with policy development We are continuing to conduct further analysis and are aiming to conclude the policy development phase of the REMA programme across all policy areas by mid-2025. We will ensure that these REMA timelines align with the timetable for the next CfD allocation round (A R 7). We plan, therefore, to announce the final decisions on REMA and the timetable for their implementation, particularly in relation to wholesale market reform and any transitional or legacy arrangements, before the A R 7 auctions open, giving investors clarity for prospective bids. We will aim to provide ongoing clarity to industry, where possible, throughout the decision and transition periods. We recognise that significant market reform creates uncertainty for investors and market participants. Government recognises the potential implication for cost of capital of transferring locational risk to generators. We will take these factors into account in our Cost-Benefit Analysis and in final decisions on whether to introduce zonal pricing or reformed national pricing. However, no change is not a viable option given the significant changes in the generation mix that will take place. In the REMA publication we provide an update on policy development for legacy and transitional • Confirming our commitment to treat allocation round in the same way as existing CfD agreements, in relation to any legacy or transitional arrangements. • Setting out our expectation that if zonal pricing was to be introduced, existing and A R 7 CfD contracts would be amended to use a local zonal reference price, insulating these agreements from

Reforming the Capacity Short‑ term changes to ensure security of supply and support the transition to As Great Britain’s primary mechanism for ensuring security of supply, we are proposing a suite of near-term reforms to the Capacity Market that will contribute to both Clean Power 2030 and Great Britain’s electricity security. These changes are critical to ensure continued investment in and the commercial viability of assets critical to security of supply. The Capacity Market is a well-established, technology-neutral scheme in which existing and new-build electricity capacity (in the form of generation, interconnectors, consumer-led flexibility and other technologies) receive revenue (£/MW) based on capacity. Participants secure agreements through auctions which require them to make capacity available at times of system stress. The nature of risks relating to electricity security faced by the system are changing. As the amount of renewable generation increases, reform is needed in order to meet peak demand in an increasingly electrified economy or demand over periods of low renewable output. Flexible technologies can, and will, play a critical role in enabling the safe transition away from gas to clean power and the Capacity Market will adapt to this new landscape. Government is taking steps now to reform the Capacity Market to provide clear and viable routes to decarbonisation for unabated gas, enable low-carbon flexible capacity to increase its contribution to security of supply, and incentivise investment into existing capacity to ensure security during the transition to Clean Power 87 D E S N Z (2024), ‘Consultation: Capacity proposals to maintain security of supply and enable flexible capacity to decarbonise’ 88 D E S N Z (2024), ‘Call for Capacity call for evidence on proposals to maintain security of supply and enable flexible capacity to decarbonise’ (viewed in December 2024). Measures aimed at supporting the decarbonisation of existing and new • Consulting on an exit pathway for unabated gas plants with multi-year agreements to leave the Capacity Market without penalty and transfer to a Dispatchable Power Agreement, facilitating conversion to power C C U S once the technology is available. • Calling for evidence on additional pathways that could be implemented in the future to enable decarbonisation of unabated gas, such as conversion to • Placing an obligation on power plants. This includes all substantially refurbishing power plants and new combustion power plants participating in the 2026 Capacity Market auction to declare that they will comply with new Decarbonisation Readiness legislation recently introduced alongside these proposed changes to the Capacity Market. This legislation will require new build and substantially refurbishing unabated gas and other combustion power plants in England to be built in such a way that they can readily convert to hydrogen-firing or by retrofitting carbon-capture technology 89 Draft Statutory Instrument (2024), ‘The Environmental Permitting (Electricity Generating Stations) (Amendment) Regulations 2024’ - provisionally expected to come into force from 28 February 2026 (viewed in December 2024). In parallel, the government is actively developing proposals to improve our and to ensure electricity security during the transition to Clean Power

• Exploring future options for developing NESO’s modelling of longer-term capacity needs, including indicative future capacity targets eight years ahead depending on responses to the call of evidence published in October. As the grid decarbonises, it is particularly important to ensure we have as much clarity regarding future capacity needs as possible. • Making it easier for refurbishing plants to access multi-year Capacity Market agreements, providing greater revenue certainty and encouraging the type of investment that ageing plants need to The government recently published a policy update on the Capacity Market Phase 2 introduce these proposals ahead of next year’s Capacity Market prequalification 90 D E S N Z (2024), ‘Capacity Policy Update – 2023 Phase 2 Consultation’ (viewed in December 2024). • Enabling low-carbon technologies to access 3- year agreements with no capex thresholds, facilitating C M access and supporting investment in low carbon, low • Introducing a new 9-year capex threshold for low carbon projects, so that new and refurbished projects with costs which fall between the existing 3-year and 15-year threshold are not prevented from coming forward in the Capacity Market. Consumer-led flexibility involves voluntary actions taken freely and directly by energy consumers to shift their electricity use.
This enables consumers to be rewarded with cheaper electricity by flexibly adjusting their usage to times of lower demand on the grid. The government is reducing administrative barriers to consumer-driven flexibility. Building on feedback already received from industry the government will publish a package of proposed changes to the Capacity Market shortly, that aims to improve the contribution that consumer-driven flexibility can make to our electricity security. This will seek views on how to better value, integrate and incorporate consumer-led flexibility within the Capacity Market. Maintaining operability and managing Rapid progress will need to be made to ensure that the electricity system can be operated securely and cost effectively using zero carbon ancillary services. In the nearer term, this will include overcoming barriers including integrating new technology into NESO’s control room. Additional changes to the wider market are needed to help ensure decarbonised system operability, including constraint management. These changes will help to ensure continued investment in NESO will continue developing short and medium-term balancing service markets, in order to help deliver a cost-efficient 91 NESO (2024), ‘NESO Roadmap’ (viewed in December 2024). enhance utilisation of batteries in providing flexibility services and introduce new stability and voltage markets to increase accessibility to low-carbon technologies. Further detail on measures to enhance the efficiency of batteries are outlined in the Short-duration NESO are also leading on a Constraints Collaboration Project with industry, to develop options for improved constraint management. The project aims to reduce these costs to consumers by implementing market-based constraint management measures. Initial assessments indicate potential savings of up to 6% of thermal

constraint costs per annum compared to the current balancing mechanism92. 92 NESO (2024), ‘Constraints Collaboration Project – Final Report’ (viewed in December 2024). This includes the potential for constraint management markets and the use of technical solutions such as the use of storage to increase the flow of electricity over constraints. The outcomes of this project should be available by early 2025. W consider the outcomes of this project as part of the ongoing REMA programme. There are several policy initiatives planned to maintain system operability through low-carbon flexible assets as the proportion of variable renewable generation • An electricity system operability strategy for 2030. This will provide clarity on how NESO will maintain system operability in a way that is consistent with Clean Power 2030, at best value to the consumer. The strategy will be published by NESO and we will work with NESO, Ofgem and stakeholders to develop a coherent and robust strategy, to be forecasting of medium to long‑term operability needs, including by location where relevant. This will help give investors and developers the level of certainty that they need for the future demand of these services to invest in low-carbon ancillary service capability. • Improved greenhouse gas emissions reporting on NESO operability activity across all electricity markets. This will provide transparency on the greenhouse gas intensity of each ancillary service that is used to maintain operability, enabling the tracking of progress in the decarbonisation of these crucial services on which operability depends. These measures will help to reach Clean Power 2030 and will work in conjunction with a longer-term strategy to resolve operability Ensuring the continued investment in The system is experiencing rising ransmission Network Use of System (T N U oS) Charges, creating a need for reforms to the network charging regime. T N U oS charges recover the cost of building and maintaining the transmission network in England, Wales, Scotland, both onshore and offshore. They feature a price signal designed to reflect the costs that demand consumers and generators impose on the transmission system by connecting in different locations. The NESO’s 10-year projection shows a trend of significant increases to T N U oS charges for Scottish generators, and a significant decrease to those in England and Wales. We also recognise that some of the highest charges are at the very end of the network resulting in some of the most productive wind assets facing the highest charges. We understand from some stakeholders that there is a need to address the volatility and long-term uncertainty arising from T N U oS charges. In particular, the increasing size of charges and the relationship with CfD marginal clearing strike prices can have an impact Ofgem have proposed a temporary cap and floor to alleviate these concerns. In an 93 Ofgem published an open letter to industry on 30th September 2024 proposing a cap-and-floor solution to the increasing cost and volatility of Transmission Network Use of System charges. develop a temporary cap-and-floor solution in response to projected increasing costs and volatility of T N U oS to drive investment in renewables. We expect that this update will provide generators with greater certainty ahead of future allocation rounds including providing certainty on direction

of travel ahead of A R 7. We will continue to work with Ofgem and NESO as this All the above proposals are at different stages of development; subject to the outcome of recent consultations and calls for evidence. The Clean Power 2030 Unit will work closely with NESO and Ofgem to ensure the timely delivery of these reforms. The earliest implementation for changes to network charges would be for the 2026 auction prequalification window. Following this shorter-term reform, under the lead REMA design options, Ofgem would introduce enduring reforms to network charges to ensure that they send a stable, cost-reflective, and effective locational signal. These options are being developed and assessed through Ofgem’s strategic review of transmission charging. We continue to work with Ofgem in this space and they seek to conclude policy thinking in line with Unlocking the potential of the retail The future retail market will play a vital role in enabling consumer-led flexibility, outlined in greater detail in the short-duration flex chapter.
The market needs the right price signals which accurately reflect the value of actions to the wider system, and which incentivise suppliers and consumers to engage in such consumer-led flexibility Additionally, smart technologies will be needed to enable consumers to engage with new products and services, allowing Market‑wide Half‑Hourly Settlement is a key enabler for the retail market, making its timely delivery critical for the 2030 programme, overseen by Ofgem, will change the landscape of the retail market. Consumers will be able to take advantage of this system to get lower bills. In addition, the smart meter rollout is critical for unlocking innovative approaches to managing consumer demand and will enable the successful delivery of Market‑wide Half‑Hourly Settlement. Improved price signals will align retail market incentives with a decarbonised energy system and demonstrate the value of flexibility chapter contains actions to remove barriers to smart meter adoption. Consumer protections must enable technologies, tariffs, and services should empower consumers to take advantage of lower price periods. We will progress work in this area so that all consumers can benefit, regardless of their level of engagement, In coordination with Ofgem, we will ensure that consumer protections are designed in such a way that they protect consumers, whilst still enabling consumers to access the benefits that innovation can bring. This includes strengthening the regulator to ensure it can hold companies to account for wrongdoing, a consultation on regulation of Third Party Intermediaries, and a commitment to improving compensation as showcased in Ofgem’s consumer confidence programme. Government is committed to retaining the default tariff cap, and will work closely with Ofgem to ensure that the future price protection framework enables consumers to get the most out of a smarter and more flexible market, whilst also ensuring that those who are unable to use energy more flexibly are not unfairly penalised. We expect these actions, delivered alongside cross-cutting enabling actions in other chapters, to drive decarbonisation by enhancing investor confidence, spurring investment in clean technologies, and fostering a more adaptable and efficient energy system essential for meeting the 2030 target. The Clean Power 2030 Unit will work across government and industry to ensure we advance policy development on wholesale market reform. This includes the ongoing work of the REMA and Retail teams. • The REMA Autumn Update provides further clarity for stakeholders – particularly investors – on REMA’s progress, timelines, and the policy options still being considered. • We will seek to conclude the policy programme by mid-2025. We will ensure that REMA timelines will align with the timetable for A R 7 in order to provide investors the maximum clarity for • On CfD reform and Capacity Market reform, we will ensure the timely delivery of reforms needed to enable 2030 Clean Power, whilst continuing to progress the longer-term reforms being considered

Since Winter 2022, under the previous government, the National Energy System Operator has offered to consumers the option for them to take advantage of different tariffs at different times. This was a departure from a monolithic system where most consumers have received a single price, whatever time they used various appliances. There was a positive response from consumers to this A significant increase in short-duration flexibility of 29-35 GW across battery storage, consumer-led flexibility and interconnection capacity from 2023 levels is possible and can play a role in achieving clean power in 2030. The opportunity is huge, as battery storage and consumer-led flexibility are scalable and could be relatively quick to deploy. Their deployment could not only cut bills for consumers but minimise the amount of more costly generation and associated network infrastructure that needs to be built, whilst maintaining security of supply. Key actions set out in this Chapter to address some of the biggest • Publication of a Low Carbon Flexibility Roadmap in 2025 to consolidate existing and further new actions to drive both short and long-duration flexibility for clean power in 2030 and net zero by 2050; • Incremental market reforms to provide batteries and consumer‑led flexibility with appropriate and fair access to, and utilisation within, relevant markets, to • Enhanced management of the portfolio of disparate programmes, projects and activities that contribute to the delivery of consumer-led flexibility, including review of the Market-wide Half-hourly Settlement (M H H S ) Programme’s delivery model to ensure implementation. We have divided these challenges and actions into four battery storage; consumer-led flexibility; common enablers for both technologies; and electricity Current installed capacity compared to the D E S N Z ‘Clean Power Capacity Range’ in 2030 (GW)4.5 94 Utility-grade batteries providing services to a region or the whole of G B . 95 Those providing services to a household or business and sitting behind the meter for the premises. can offer short-duration flexibility (currently typically a maximum of two hours’ continuous supply of electricity without recharge). Long-duration electricity storage (currently defined as at least 6 hours of continuous supply of electricity), is considered in the long-duration flexibility chapter of Batteries can be used to store electricity when it is plentiful and low cost, such as during low demand periods when wind and solar output is high, for use when electricity generation is less plentiful or during times of peak electricity demand. Batteries can reduce the amount of generation and associated network that needs to be built to meet peak demand, helping Britain reach clean power in a cost-effective way and reducing delivery risk associated with other types of energy infrastructure. Currently, there is 4.5 GW of battery storage 96 Modo Energy (2024), ‘Indices & Benchmarks’ (viewed in December 2024). which is grid-scale. Based on NESO and D E S N Z battery storage growth scenarios for 2030, we expect 23-27 GW of battery storage to be needed by 2030 to support clean power, a very significant level of increase.
The government expects the majority of this increase to come from grid-scale batteries, with small-scale batteries While there are many common enablers for both consumer-led flexibility and battery storage which are addressed later in this chapter, there are also specific actions necessary for battery storage to deliver on its potential for supporting clean power. In addition, D E S N Z is considering the role heat batteries can play in decarbonising homes and hopes to be in a position to feed this work into the low carbon flexibility roadmap in summer 2025. Among the specific actions required for batteries, improving the time it takes for mature grid-scale batteries to obtain grid connections and planning decisions are the most significant actions in order to deliver the huge increase in grid-scale battery hurdles and corresponding actions needed to address them, as well as specific hurdles and actions applying to small-scale batteries. there are many projects with grid grid connection agreements are not ordered by project maturity or strategic need leading to long Ofgem and network companies to ensure that grid connection reforms and acceleration of grid infrastructure development timelines result in a sufficient capacity (in line with the 2030 clean power capacity range) of mature, grid-scale battery projects to connect (b) Planning Grid-scale batteries e a long time to gain planning approval and are not currently D E S N Z will work with M H C L G to consider how grid-scale batteries, and their importance for clean power in 2030 and net zero, could be referenced in future planning reforms. batteries are currently covered maintained as batteries deploy. Defra will consult on including grid-scale batteries within the Environmental Permitting Regulations costs of home batteries can be high for consumers, particularly D E S N Z will consider the financing options for retrofit works, including batteries, in the Warm Homes Plan. providing vehicle-to-grid services are asymmetrically charged with levies. This means that levies refunded on export, creating a disincentive to providing flexibility. D E S N Z and Ofgem will review the options available to remove final consumption levies for home batteries and vehicle-to-grid E V batteries and set out next steps in a 2025 Clean Current installed capacity compared to the D E S N Z ‘Clean Power Consumer-led flexibility involves voluntary actions taken freely by energy consumers – or on their behalf by Demand Side Response Service Providers (D S R S P s) with consumers’ consent – to shift some of their electricity use when they choose to be rewarded for this flexibility while still having their energy needs 97 These voluntary offers of flexibility by energy consumers (whether households or industries) can also be referred to as demand side response (D S R ) or demand flexibility. . The financial benefits of flexibility on offer to consumers reflect the benefits to the wider electricity system (which in turn A consumer could choose, for example, to receive cheaper electricity bills or other benefits in return for enabling a service provider to vary the electricity use of an

Energy Smart Appliance (E S A ) such as their electric vehicle (E V ) smart charge point or their smart heat pump while still meeting the consumer’s needs (e.g. a charged E V by the morning or household temperature remaining within defined bounds). All consumers will enjoy benefits from nation-wide consumer-led flexibility, as it will lower prices for peak hours by flattening Consumer-led flexibility also reduces Britain’s aggregate electricity use at peak demand periods, thereby minimising the amount of generation and associated network that needs to be built to meet peak demand. It can therefore help Britain to reach clean power in a cost-effective way with reduced large infrastructure delivery risk. Ofgem monitors consumers’ approach to flexibility and its role includes ensuring that sufficient consumer protection is in place for this In 2023, following a scheme put in place by the National Energy System Operator, there was 2.5 GW of consumer-led flexibility utilised in Great Britain (not including electric storage heater flexibility), with 0.8 GW from smart heat pumps and flexible district heating, 0.5 GW from E V smart charging, 0.4 GW from other smart appliances and 0.8 GW from non-domestic consumer-led flexibility. Non-domestic consumer-led flexibility has fallen over time, reducing from 1.7 GW in 2021 to 1.2 GW in 2022 and then to 98 NESO (2024), ‘Future Energy Scenarios 2024’ (viewed in December 2024). 99 4.8 GW is also assumed flexibility from storage heaters in 2023. The electric storage heaters providing current flexibility have in most cases been in place for a long time, and this capacity is expected to fall over time. It will be important that when consumers replace storage heaters that they adopt new and efficient forms of low carbon heating such as heat pumps. Up to now, only those consumers who were the best informed took up the flexibility on offer. With market-wide half-hourly settlement there is considerable potential for growth Based on NESO and D E S N Z scenarios for 2030, excluding electric storage heaters, we expect 10-12 GW of consumer-led flexibility capacity is possible by 2030 to support clean power. Government expects E V smart charging to be a key driver of consumer-led

Data excludes storage heaters that shift around 4 GW. NESO refers to consumer-led flexibility as NESO (2024), ‘Clean Power 2030’

Ensuring that all consumers have the potential benefit of this flexibility requires the delivery of a large number of different policies, projects and programmes across many different organisations, summarised at a high level in the diagram below. • Market-wide Half-hourly Settlement Programme • Growth in flexibility markets • Growth in flexibility consumer products (eg.
TOU tariffs) • Balancing Mechanism and ancillary services • Markets operated by Distribution System Operators • Licensing of flexibility providers • Interoperabiity and security standards for ESAs • Retail consumer protection policies • Flexibility Markets Facilitator While there are many common enablers for both consumer-led flexibility and battery storage, there are also specific actions necessary to further increase the scale of choice and opportunity for consumer-led flexibility and enhanced energy bill savings. Some areas requiring a step change are the hurdle they present to consumer-led flexibility capacity is set out. For context, the wider government net zero programmes supporting the electrification of transport and heating will also be fundamental to the amount of consumer-led flexibility that

Swift introduction of market-wide half-hourly settlement is vital for incentivising all energy suppliers to reward consumers for being fle Ofgem as programme sponsor will review the market-wide half-hourly model by the end of F Y 24/25, including to ensure that industry parties have credible plans to complete market-wide half-hourly settlement in a timely way and maximise the amount of half-hourly Trust in consumer-led flexibility is essential to uptake, requiring interoperability of E S A s (e.g. to support choice and competition in service provision for consumer- led flexibility), effective regulation consumers, and safeguards against cyber-security and grid stability D E S N Z will publish in Spring 2025 a government response to the 2024 package of Smart Secure Electricity Systems Programme consultations on E S A s interoperability, a new providers for consumer-led flexibility and load controllers, and tariff data accessibility. This will be followed up with detailed consultations on draft “first phase” E S A legislation establishing minimum cyber-security requirements for appliances in heat pumps; draft D S R S P and load controller regulation and licence conditions; and measures to improve time of use tariff data Successful delivery of consumer- led flexibility requires coordination across a large number of policies, projects and programmes spanning government departments, Ofgem, NESO and industry. More strategic will work with policy teams to review necessary organisational requirements to effectively plan and track delivery data for consumer- led flexibility across all relevant obstacles, on an ongoing basis. Metering Smart meters Consumers looking to participate in consumer-led flexibility need to be able to quickly D E S N Z is working with Ofgem Standards of Performance relating to smart metering in 2025. These may include standards relating to the timely installation and metering regulation requires meters to have external displays, which adds to manufacturing costs of engagement on allowing for remote display options in the Measuring Instruments Regulations, for meters used for trade, and plan to consult on options to amend the existing requirements during the first quarter voluntary activity, and it is crucial that consumers are well informed of what it involves and how to participate, which evidence shows is not always currently the case. D E S N Z will, in Summer 2025, publish a consultation on consumer potential to better coordinate and Consumer-led flexibility capacity from large non-domestic energy consumers has fallen from 1.7 GW in 100 Figures illustrate the loss of incentive, including the Triad changes during this period, not the decline in actual D S R capacity. D E S N Z , NESO and Ofgem will set out specific actions for supporting an increase in large non-domestic consumer-led flexibility in a Low Carbon Flexibility Roadmap in 2025, following industry engagement. Increasing access to E V private charging Landlords can increase the costs of charging E V s for communal smart charger, making E V smart charging unduly expensive for the Maximum Resale Price, seek to address identified issues and update the current requirements, as required, setting out progress and next steps in the 2025 Flexibility

electric vehicles in public on-street locations has the potential to deliver charge point operators are only just beginning to provide flexible tariffs explore with industry options to accelerate deployment of smart charging at public charge points and set out progress and next steps in the 2025 Flexibility Roadmap. Common enablers for consumer‑led flexibility and battery storage Some of the greatest hurdles faced by consumer-led flexibility and batteries are common to both, in particular around market access. Unlike low carbon generation and other forms of low carbon energy storage, battery and consumer-led flexibility projects are wholly dependent on forecast market revenues for investment decisions. Therefore, confidence that there will be appropriate access to, and utilisation within, relevant markets is crucial for scaling up battery storage and consumer-led flexibility on this and other common hurdles, and corresponding actions for addressing them and turning them into enablers for battery storage and consumer-led flexibility. Additional work that has the potential to improve market opportunities for consumer-led flexibility and batteries, including wider change to G B market arrangements that could send sharper price signals, is discussed in the ‘Reforming our electricity markets’ chapter of this action plan. (e.g. the Balancing Mechanism, the Capacity Market) is currently short-duration flexibility. Issues revenues by flexibility assets NESO have agreed to set out, for inclusion in the Low Carbon Flexibility Roadmap, progress on and further actions to support providing flexibility assets with appropriate and fair access to the markets it manages, • removing unnecessary or overly restrictive rules or participation requirements to the greatest extent possible, allowing access to more • providing increased transparency as well as improvement to the systems NESO uses to dispatch flexibility, with evidence of reductions in flexibility • further facilitating revenue stacking • an assessment of the potential to create additional measures to enable a wide range of flexibility providers to offer services to meet system needs (including constraint management). D E S N Z will, ahead of the 2025 Capacity Market prequalification 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.
These include permitted augmentation of storage, adjustments to Extended Performance T esting Requirements and making available 3-year Capacity Market agreements for low carbon technologies whose CAPEX is £0/kW. In addition, D E S N Z plans to publish shortly a Consultation and Call for Evidence to invite stakeholder views on how to better reflect the diversity of consumer-led flexibility technologies and their treatment and handling within the

date framework for prioritising and industry. This will be crucial for maximising the potential of flexibility for Clean Power 2030 D E S N Z will publish with Ofgem and NESO a joint Low Carbon Flexibility Roadmap in 2025. The Flexibility Roadmap will set out clear short and long-duration flexibility milestones and measures required for both clean power in 2030 and net zero by 2050, building on those within this Action Plan. The oadmap will also provide a framework for planning and tracking the delivery of these key flexibility measures. As part of this, D E S N Z , working with Ofgem and NESO where appropriate, will review current measures to assess where further changes or new policies are needed to support Clean Power 2030 There is insufficient visibility the integration of these assets and potential for their utilisation D E S N Z and Ofgem will work with NESO to set out measures in the Low Carbon Flexibility Roadmap in 2025 to enable greater visibility of distributed energy assets to unlock further flexibility and of short-duration flexibility for chargers for vehicle-to-grid and develop consumer-led flexibility ensure the flexibility innovation needed to facilitate clean power 2030 and net

Current installed capacity compared to the D E S N Z ‘Clean Power 101 Ofgem (2024), ‘Interconnectors’ (viewed in December 2024). Electricity interconnectors connect the transmission systems of two countries, enabling us to import and export electricity. At the end of 2023, Great Britain had 9.8 GW of interconnector capacity across 9 interconnectors, with a further 2 interconnectors (1.9 GW of capacity) in and NESO modelling of clean power trajectories, we expect 12-14 GW of interconnector capacity by 2030 to deliver clean power. Interconnectors can bring a wide range of system and consumer benefits. Electricity interconnectors support security of supply by enabling access to more diverse generation over a wider geographic area. They also provide system flexibility by helping the system rapidly respond to changes in supply and demand. This means that, when we generate more electricity than we need, a strong interconnector system will allow us to export the excess electricity, thus contributing towards the clean energy superpower role of the United Kingdom. Finally, interconnectors contribute to European-wide decarbonisation, as they can allow for more efficient use of intermittent renewables between connected countries. to maximising the growth of electricity interconnection by 2030. There may be additional, project specific hurdles that D E S N Z will work with developers to action, as appropriate. Additionally, the Supply Chain and Workforce section of this document details how the U K will use our established manufacturing capacity to support the

interconnectors awarded cap and the third cap and floor window / Offshore Hybrid Asset pilot a) might have been awarded a connection agreement for later than 2030, or b) might not be operational by 2030. that the grid connection reforms support the interconnection capacity required to meet the 2030 clean power capacity ranges, and M H C L G will consider how planning reforms can support this capacity for the 2030 clean power capacity ranges. The supply chains for H V D C cables are tight and present risks to interconnector projects with cap and floor agreements from the third cap and floor window / Offshore Hybrid Asset pilot not being operational D E S N Z is exploring a range of options to mitigate supply chain challenges including measures to develop the domestic supply chain. The implementation of the actions in this chapter should make a strong impact in helping to achieve the benefits for consumers made possible by clean power in 2030, particularly by rapidly improving market access and utilisation for battery storage, increasing opportunities for consumer-led flexibility, implementing market-wide half-hourly settlement, and significantly reducing grid connection and planning timelines for grid-scale batteries The government will continue to work with Ofgem, NESO and industry to review the need for further actions and we will include these new actions within the Low Carbon Flexibility Roadmap that we will publish in 2025. Success will involve evidence that investments and operational assets are ramping up short-duration flexibility capacity in line with the capacity ranges for Clean Power 2030 that are set out in this Action Plan. The Clean Power 2030 Unit will Delivery of this short-duration capacity for clean power in 2030 will also significantly help with meeting carbon budget and net sector to accommodate the significant increase in future electricity demand that will result from the electrification of other sectors such as transport, heat and some 102 B E I S (2021), ‘Smart Systems and Flexibility Plan’ (viewed in December 2024). Long-duration flexible technologies can add significant value to the system and can provide a secure supply of electricity during extended periods of low renewables output. There are a number of innovative low carbon technologies such as power carbon capture, usage and storage (C C U S ), hydrogen to power (H2P) and forms of long-duration electricity storage (L D E S ), capable of replicating the role of unabated gas. We estimate between 40-50 GW 103 of dispatchable and long-duration flexible capacity could be needed by 2030. Whilst we will continue to rely on unabated gas to ensure security of supply, we will drive the deployment of these low carbon technologies, cementing our position as a world leader at the cutting edge of the 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.