March 2025 Key Developments in the Great British Energy and EV Industry

The Spring Statement contained less energy and Net Zero measures than some in the sector may have liked, but that does not mean March has been quiet. In this roundup, Engage pulls out the stories that we feel are most notable.  

Government Policies and Initiatives 

GB Energy gains momentum  

Establishing GB Energy was a key Labour manifesto commitment in the 2024 General Election, and its founding was announced within the first month of government in July 2024. Until this month, there was little news from the new publicly owned body, and the sector has been eager to hear more about its role and activities. 

GB Energy held the inaugural meeting of its start-up board on the 17th of March, which was swiftly followed by a government statement on its mandate and activities in partnership with the National Wealth Fund.  

This statement was swiftly followed by the announcement of two landmark initiatives. Firstly, GB Energy will provide £10 million in funding for local government to support metro mayors with the creation of clean power projects. Secondly, it has announced £200 million in funding, which will facilitate installation of rooftop solar panels in approximately 200 schools and NHS sites, saving hundreds of millions on energy bills.  

Consultation on the future of the North Sea  

On the 5th of March the government launched the ‘Building the North Sea’s Energy Future’ consultation, which seeks views on proposals to transition the North Sea into a hub for clean energy, leveraging its existing infrastructure and assets. The consultation emphasises developing offshore wind, carbon capture and storage, and hydrogen technologies. It also emphasises proposals that support sustainable jobs and boosts economic growth in North Sea communities that have been impacted by the 72% reduction in oil and gas production occurring between 1999 and 2023. The government also announced that it would not issue licences to explore new fields whilst it managed existing oil and gas fields for their lifespan. The consultation is open for response until the 30th of April 2025.  

A strategy for a Zero-Emission Maritime sector  

On the 25th of March, the Department for Transport published the Maritime decarbonisation strategy with measures to decarbonise the domestic maritime sector, which accounted for 8% of total UK transport GHG emissions in 2022. The Strategy sets out its plan to reduce greenhouse gas emissions from 2008 levels by 30% by 2030, 80% by 2040, and 100% by 2050. The strategy includes five key measures, specifically regulating fuel use, pricing emissions, berth GHG requirements, proportionate measures for smaller vessels, and energy efficiency improvements.  

Warm Homes Plan allocation announcements  

On the 11th of March, the government announced that Local Authorities and Social Housing providers will receive £1.8 billion to support the delivery of energy efficiency in up to 170,000 homes across England. The funding was allocated under Wave 3 of the Warm Homes: Social Housing Fund, and the Warm Homes: Local Grant funding request process closed late last year. The funds will target low-income households or social housing tenants, who will be able to receive insulation, solar panels, and heat pumps. The funding will be used by allocated Local Authorities between 2025 and 2028.  

Spring Statement Announcements on the Climate Change Levy 

On the 26th of March, the Chancellor of the Exchequer delivered the Spring Statement to the House of Commons. The Statement did not include many energy measures, but one notable announcement was the removal of Climate Change Levy (CCL) costs from electricity used in electrolysis to produce hydrogen. This aims to reduce the operational costs for green hydrogen producers. The government will consult on the route to make these changes to the CCL, and others, in a consultation that has yet to be dated.  

Planning and Infrastructure Bill 

On the 11th of March, the Planning and Infrastructure Bill, was laid in parliament with multiple proposals intended to support clean power and net zero. This includes streamlined processes for EV charging infrastructure, a Long-Duration Energy Storage Cap and Floor Scheme, savings for households near new pylons, and modified processes for connecting electricity generating sites to transmission networks. The Bill extends to England and Wales, with some provisions for infrastructure extending to Scotland, including ambitious reforms to electricity infrastructure consenting. The Bill forms a key part of the government’s Clean Power 2030 Action Plan.   

Industry Milestones 

The UK’s Largest EV charging ‘Superhub’ opens in Winchester 

The UK’s largest solar and storage EV charging site was opened on the 24th of March, one week after a visit from DfT Secretary of State Heidi Alexander. The site holds 44 ultra-rapid chargers, each capable of delivering up to 160kW of power, and will serve drivers travelling between the Midlands, Oxford, and the Southwest. The hub has 870 solar panels, alongside on-site battery storage, allowing it to run on a mix of self-generated power and the grid, demonstrating how microgrid solutions can support decarbonisation, especially when complemented by flexible energy tariffs, as the site offers its customers access to off-peak or on-peak rates charging time rates.   

Ofgem publishes the Long Duration Energy Storage Scheme Technical Decision Document  

On the 11th of March Ofgem and DESNZ published a joint Technical Decision Document (TDD) for the cap and floor Long Duration Energy Storage (LDES) scheme. The TDD confirms key final details of the scheme and sets out how it will operate, application window timelines, eligibility criteria, and the potential LDES capacity needed. It also clarified that lithium-ion electricity storage projects will be treated as batteries for the purposes of the Clean Power 2030 Action Plan, after some confusion on its status when the plan was published last year.  

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