28/02/2025
Welcome to our February Energy Matters Newsletter
The energy sector is a rapidly changing market with daily updates on technological advances, regulatory reviews, policy updates, funding decisions. In each edition of our Energy Matters Newsletter, we aim to provide a user-friendly, summary update of some of the key issues we are seeing across the renewable energy and resource management sectors.
If you would like to discuss any of the issues raised, please contact a member of our energy team.
Energy Spotlight
The Confederation of British Industry (CBI) published its latest CBI Economics report, commissioned by the Energy & Climate Intelligence Unit (ECIU), earlier this month. The report shows that the UK’s net zero economy is not only helping to tackle climate change, but is also a growing sector, one which is growing three times faster than the overall UK economy and bringing with it substantial economic benefits.
The report details net zero sector growth of 10.1% in total economic value in 2024, generating £28.8 billion for the economy (which as the CBI points out is only 0.82 billion less that the entre size of Wales’s economy). As at December 2024 there were 22,800 net zero businesses supporting 273,000 full-time jobs, with wages 15% higher than the UK norm. The sector creating jobs, and creating higher paid jobs.
When wider supply chain activities are taken into account the sector’s impact accounts for £83.1 billion and supporting 951,000 jobs across the UK, which means that that for every job supported by net zero businesses, a further 2.5 jobs are supported in the wider economy.
What the data shows is that the net zero economy has an important role to play, not only in sustainability but also economic growth.
With a significant part of our economy dependent on the success of the net zero sector, not to mention the sustainability of the planet, it is vital that we do not take this growth for granted and continue to support the sector by providing the right legislative, political and investment environment for growth.
Overview Quick Links
Carbon capture storage / usage
Electric vehicle infrastructure
Carbon Capture Storage / Usage
Environment Agency 17 January 2025
The Environment Agency (EA) has launched a consultation, seeking views on the development of Environmental Assessment Levels (EALs) for the amine-based carbon capture process.
District Heating
Consumer interest in heat pumps from Octopus jumps by 144% in 2024
Octopus Energy 16 January 2025
Over 200,000 homeowners contacted Octopus Energy to enquire about a heat pump in 2024. This marks a staggering 144% increase from the previous year.
Electricity
Ofgem announces new fast-track grid connections system
Ofgem 14 February 2024
The new connections system, which could be in place in spring 2025, would end the first-come, first-served system where clean energy generation or storage projects that we need cannot get plugged into the grid quickly enough, with some waiting a decade or more.
Department for Energy Security and Net Zero 10 February 2024
The Department for Energy Security and Net Zero (DESNZ) has published the response to its January 2024 consultation on potential transitional support arrangements to facilitate the transition of large-scale biomass electricity generators to power bioenergy carbon capture and storage.
NESO publishes Electricity Ten Year Statement
National Energy System Operator 24 January 2024
The Electricity Ten Year Statement (ETYS) is NESO’s view of future transmission requirements and the capability of Great Britain’s National Electricity Transmission System (NETS) over the next ten years.
Electric Vehicle Infrastructure
National Grid starts work on connection for UK’s biggest EV battery factory
Ofgem 14 February 2025
The new connections system, which could be in place in spring 2025, would end the first-come, first-served system where clean energy generation or storage projects that we need cannot get plugged into the grid quickly enough, with some waiting a decade or more.
Energy Efficiency
Extending the UK Emissions Trading Scheme cap beyond 2030
Department for Energy Security and Net Zero 12 February 2025
The UK Emissions Trading Scheme (ETS) Authority is seeking input on proposals for extending the UK ETS beyond the end of Phase I at midnight on 31 December 2030
Subsidies halved for Drax power station
BBC News 10 February 2025
The government has agreed a new funding arrangement with the controversial wood-burning Drax power station that it says will cut subsidies in half.
Warm homes and cheaper bills as government accelerates Plan for Change
Department for Energy Security and Net Zero 7 February 2025
Households across the country are set to benefit from cheaper bills and warmer homes as the government accelerates its Plan for Change.
2024 broke records for rooftop solar and heat pump installations
MCS 16 January 2025
More than 260,000 onsite low-carbon technologies like rooftop solar systems and heat pumps were fitted in UK homes and businesses in 2024
Energy Sector Reform
Government announces £410m investment in fusion energy development
Department for Energy Security and Net Zero 16 January 2025
Government announces £410 million investment to accelerate development of fusion energy and kickstart economic growth as part of its Plan for Change.
Energy from Waste
Government to crack down on waste incinerators with stricter standards for new builds
Department for Environment, Food & Rural Affairs 30 December 2024
New waste incinerators will only receive planning approval if they meet strict new local and environmental conditions, the Government has today announced (Monday 30th December)
Hydrogen
Plans for UK's largest hydrogen storage caverns moved
BBC News 30 January 2025
The company behind the project had previously agreed to lease a site at the Port of Portland for the project, but are now proposing a new site west of Weymouth in Dorset.
Nuclear
Government to approve more Nuclear power plants
Department for Energy Security and Net Zero 6 February 2025
More nuclear power plants will be approved across England and Wales as the Prime Minister slashes red tape to get Britain building - as part of his Plan for Change.
Onshore and Offshore Wind
Government to accelerate the construction of offshore infrastructure
Department for Environment, Food & Rural Affairs 29 January 2025
New measures will unlock up to £30 billion investment in homegrown clean power as permissions for new offshore wind projects are streamlined.
If you would like to discuss any of the issues raised, please contact a member of our energy team.
