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2025

Path to Net Zero

Policy Landscape in the UK

Key Policies / Bills for Net Zero 2030 Goals

03 | Key Policies / Bills for Net Zero 2030 Goals

Broader Electricity Market Reforms – Review of Electricity Market Arrangements (“REMA”) (Summer Update July 2025)

  • REMA prioritizes reformed national pricing over zonal pricing to support investment in utility-scale renewables. In July 2025, the government confirmed its decision to retain a single, UK-wide wholesale electricity market, rejecting zonal pricing.

  • It introduced a reformed national pricing regime designed to send stronger and more predictable locational signals. This ensures that investors in large-scale renewables such as solar farms and wind parks can better assess value by location and make deployment decisions with greater clarity and confidence.

  • As part of the reformed national pricing framework, the government is developing a Strategic Spatial Energy Plan (SSEP) to guide the siting of large-scale generation and storage, which is to be published in 2026 by NESO. This plan takes a system-wide, geographical approach, mapping optimal locations and scales for utility-scale renewables and storage.

  • By coordinating land, seabed, and grid planning, the SSEP aims to reduce connection wait times, cut network constraints, and accelerate project rollout in line with Clean Power 2030.

  • Constraint management measures will be in place to reduce curtailment of renewables and lower system costs. In the Summer Update, the government reaffirmed plans to work with NESO and industry stakeholders through the Constraints Collaboration Project, launched in 2024.

  • This initiative aims to ease transmission constraints by reducing curtailment of large-scale renewable generation and lowering consumer costs. For instance, strategic contracts with high-demand users can help absorb surplus renewable output in congested regions.