Skip to main content

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.