2025
Path to Net Zero
Policy Landscape in the UK
Key Takeaways
01 | Key Takeaways
Clean Energy Transition
The United Kingdom (“UK”) is accelerating its clean energy transition, with a commitment to
reduce greenhouse gas (“GHG”) emissions by at least 68% from 1990 levels by 2030, supported by a
target for at least 95% of electricity generation to come from clean sources by the same year.
Ambitious Installation Capacity Targets
Achieving the 2030 capacity targets will demand a transformative scale-up: offshore wind capacity
must more than triple, onshore wind more than double, solar capacity grow fivefold, and battery
storage installations expand fivefold.
Grid Reform & Supply Chain Investment
UK grid connection reforms are set to fast-track renewable deployment by replacing the ‘First
Come, First Served’ model with a prioritisation of shovel-ready projects. The Office of Gas and
Electricity Markets’ (“Ofgem”) £4 bn Advanced Procurement Mechanism (“APM”) further accelerates
progress by expediting grid upgrades and equipment delivery.
Accelerated Approvals & Market Reform
The government is overhauling planning and consenting processes to fast-track large-
scale renewables and storage projects. Measures include streamlined Nationally Significant
Infrastructure Projects (“NSIP”) thresholds, reduced legal bottlenecks, and a forthcoming Planning
& Infrastructure Bill to cut project timelines.
Contracts for Difference (“CfD”) Allocation Round 7 (“AR7”) Reforms
With extended contract terms, a longer commissioning window, and higher administrative strike
prices (“ASP”), the government is prioritizing capacity growth over fixed budgets, aiming to add
significant clean energy capacity towards the 2030 target.
Mobilising Investment & Industrial Strategy
Public capital is being deployed as a catalyst to crowd in private investment through the £27.8 bn
National Wealth Fund (“NWF”), Great British Energy (“GBE”) equity commitments, and the Clean
Industry Bonus scheme. These funds, alongside a 10-year Clean Energy Industries Sector Plan,
target domestic supply chains ensuring industrial growth alongside decarbonisation.