Clean Power 2030 is a key part of Labour’s plan to ‘Make Britain a green superpower’. To achieve the ambitious goal, Labour published the Clean Power 2030 Action Plan (‘the Action Plan’) in December 2024. This plan set out a comprehensive strategy to meet these ambitions with activity across:
- Planning and consenting.
- Electricity Networks and connections.
- Renewable and nuclear project delivery.
- Electricity market reform.
- Short and Long duration flexibility.
- Investment, supply chains and workforce.
With only five years left for the 2030 target, the government has given itself a long list of actions to meet this ambitious goal. This blog highlights some notable advancements against CP2030 categories in the four months since it was published.
Planning and Consenting – Landmark Bill on the Move
The Action Plan emphasises the need to streamline planning and consenting to unlock bottlenecks to infrastructure delivery and prioritise critical infrastructure. Projects often take a large amount of time to have planning approved, and the timescales are only increasing, with the average time to grant permission rising by 30% between 2021 and 2023.
The Action Plan detailed plans for change within the Planning and Infrastructure Bill, which was laid before parliament on the 11th of March. The bill includes several changes for renewables, including:
- Adjustments to the threshold for a project to be considered a Nationally Significant Infrastructure Project.
- Revisions to the criteria local authorities should consider when granting planning permissions.
- Changes to the Scottish framework for electricity infrastructure consenting.
- Discounts for individuals living within 500 meters of new pylons to win local support for new projects.
The Bill is currently at committee stage, and on the 23rd of April an amendment to scrap statutory consultation requirements for major infrastructure projects was introduced. The government predicts will reduce the average two-year pre-consultation period by half for wind farms and other large projects.
The extent the Bill delivers intended CP2030 mechanisms will be revealed as it continues to pass through Parliament. Some of its measures are subject to controversy, as its efforts to improve the speed and predictability of planning decisions will reduce the opportunities for local councillor input. Environmental groups are also watching the Bill with a close eye, especially its ‘Nature Restoration Fund’ which allows developers to pay a levy to offset environmental impacts. Friends of the Earth, which won a court case against the previous government on its Carbon Budget Delivery Plan, has launched a petition against a perceived ‘pay to destroy’ system.
Electricity Networks and Connections – Farewell to ‘first come, first served’
To transport clean power, new generation and storage sites must be connected to the transmission system. The UK’s historic ‘first come, first served’ transmission connection process has resulted in a long queue of projects, which is cluttered with projects with capacity far exceeding what is needed for Net Zero 2050, and critical projects sit behind ‘zombie projects’ with little indication of progress.
Connections Reform has been developing for several years and plays a key part of the government’s 2030 Clean Power Action Plan. On the 15th of April, Ofgem granted a green light to the TM04+ Grid Reform Package, which moved from a ‘first come, first served’ process to a ‘first ready, first needed, first served’ basis. Strategic alignment with Clean Power 2030 will form a large part of the definition of ‘first needed’, ensuring that projects meet current and future needs. This change will have significant changes for battery storage schemes as well as new generation sites.
Renewable and Nuclear Project delivery – Unlocking Investment
The Action Plan highlights the need to encourage investment in projects to secure the necessary power from renewable sources. DESNZ has stated the need to secure at least 12 GW of new offshore wind alone across the next 2 to 3 Contracts for Difference (CfD) allocation rounds to meet the 2030 target. To help deliver the necessary electricity, the Action Plan sets out plans to reform the CfD system to support new site delivery. The government formally consulted on proposed changes between February and March, including:
- Relaxing the eligibility criteria for fixed-bottom offshore wind.
- Greater transparency for the auctions.
- Increasing the length of a CfD beyond 15 years.
The Action Plan also promoted GB Energy as a key enabler of projects, and whilst the role of the body has been somewhat unclear since its launch in July 2024, it has recently gained some momentum. Its inaugural meeting was held in March, followed by a government statement with details on its mandate and planned activities in partnership with the National Wealth Fund. GB Energy will focus on three areas: clean energy development, local community investment and creation of jobs and supply chains.
GB Energy’s first local community projects have also been announced, providing £10 million in funding for local government and £200 million in funding for rooftop solar panels in approximately 200 schools and NHS sites. On the 24th of April, the Prime Minister also announced that an initial £300 million investment through Great British Energy to win global offshore wind supply chain investment for the UK. The government claims that £43 billion of private investment has been pledged for clean energy projects since July 2024, and whilst this is a positive start, momentum must be kept up to meet the government’s ambition of £40 billion per year until 2030 (a cumulative investment of roughly £240 billion). The role and effectiveness of GB Energy in increasing this number is still unclear, but the sector now has something to actively watch after over half a year of silence.
Electricity Market Reform – all eyes on REMA
The Action Plan also highlighted actions to change electricity markets, which deliver security and affordability for consumers as the electricity sector decarbonises. There has been little movement in this area since the Action Plan was published, as much of it falls under the wider Review of Electricity Market Arrangements (REMA), which has not had a large update beyond what was put in the REMA Autumn Statement. The government has committed to a decision on the policy development phase of REMA by around mid-2025.
The potential introduction of zonal pricing, a key measure which will be revealed under the REMA package, has seen heavy media coverage across April. Under the scheme, power costs would match local supply and demand, which could lead to lower bills in areas with abundant wind generation like Scotland. Whilst those in favour of zonal pricing argue that the system would make the grid more efficient and encourage investment in underserved areas, those opposed argue that it could lead to a ‘postcode lottery’ for energy bills, and create investor uncertainty by moving from a single national price.
Whilst the details of REMA have not seen movement in the last 4 months, targeted changes to the Capacity Market have been introduced. On the 14th of February, the Electricity Capacity (Amendment) Regulations 2025 came into force, meeting the Action Plan commitment to extend the performance testing system, so failure to meet these tests will be treated the same as failure to meet satisfactory performance days.
Short and Long Duration Flexibility – An Ambitious New Scheme
The Action Plan included measures to improve short and long-duration energy storage infrastructure rollout and incentivise flexible customer behaviour to help support the balance of the electricity grid. The landmark Long Duration Energy Storage scheme, which was described in the plan, has since been progressed, and on the 8th of April Ofgem opened the first application for Long Duration Electricity Storage (LDES) projects. They aim to approve the first projects in Q2 2026.
There has also been significant progress for Short Duration Energy Storage. On the 23rd of April, the government published the long-awaited consultation response to the Smart Secure Electricity Systems (SSES) Programme implementation. This committed to putting energy smart appliance legislation within the next year. This legislation is intended to introduce a smart mandate for electric heating products placed on the market and define minimum smart capability requirements on smart electric heating appliances and domestic battery storage systems. It will also adjust the 2021 regulations, which place a smart mandate on new private EV charge points, incorporating them into the same legislation. The SSES also commits to introducing a new load control licence framework, which would formalise obligations of actors that control or shift electricity demand through ESAs, including requirements for consumer protections and transparency.
Supply Chains and Workforce- Building a ‘Clean Power Army’
To accelerate the delivery of clean power and help investor certainty, the Action Plan highlighted the need for safe supply chains and labour resources. Much of the supply chain insight is expected to be revealed when the government publishes its Industrial Strategy, originally planned for Spring publication but now planned for publication in June alongside the Spending Review.
Nevertheless, the government has made some targeted progress, launching the ‘Clean Industry Bonus’ in February. The scheme grants funding to offshore wind developers when they prioritise investment in areas deemed in most in need and aims to particularly benefit traditional oil and gas communities. The Bonus will also reward offshore wind developers who build infrastructure which reduce industrial emissions across the clean energy supply chain.
In January, the government also launched ‘The Energy Skills Passport’, which aims to enable workers to easily identify which qualifications are transferable from roles in oil and gas. On the 7th of April 2025, the government also released a joint press release between DESNZ and the Department for Work and Pensions, highlighting several initiatives to build a ‘clean power army’, including several Regional Skills Pilots in the clean energy sector, which will target Aberdeen, Cheshire, Lincolnshire and Pembrokeshire.
Looking Ahead
In just four months it is clear that the government is making progress against its very long to do list to achieve Clean Power 2030. There’s still a long road ahead, but the gears are turning.
With planning reform accelerating, connections decongesting, and GB Energy entering the arena, the pieces are being set. However, a lot of critical changes are still yet to be revealed and subject to controversy which could affect their delivery. In the next year, the industry will be particularly watching out for the final REMA policies, a completed Planning Bill and the publication of the Infrastructure Strategy.
The swathe of activity under the Action Plan is just one demonstration of the complex web of change facing the country’s energy sector. Combined with broader Net Zero 2050 measures in transport decarbonisation, clean heat and carbon capture and storage, it can be hard for organisations to monitor the activities of the sector to understand opportunities or challenges which can affect them. Engage’s team of sector experts offers knowledge building services to equip our clients with the tools they need to navigate the sector. Reach out to us to hear more about how we can support you.
