30/01/2025
Welcome to our January 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
Grid Reform and connection
On 15 January 2025, the National System Energy Operator (NESO) announced a temporary pause on new connection applications, effective from 29 January until 31 May, or until the implementation of the new connection reform process.
NESO says it has requested this pause because the grid connections queue has grown significantly over the last year to the point that it is no longer possible to deliver connections reform in parallel with the existing connections process.
In 2023/24 alone, NESO received over 1,700 applications to connect to the national electricity transmission system, leaving more projects already in the queue than are required for the energy system in 2030 or even 2050
The aim of this is to ensure NESO use its resources effectively to enable it to deliver connections reform.
Demand projects which directly connect to the network, will be allowed to continue through the connections process.
Procurement
On 24 February 2025, the Procurement Act 2023 will come into force, marking the most significant overhaul of procurement law in recent memory. While some of these issues are complex, we’re committed to helping clients navigate this new landscape.
The Central Digital Platform for suppliers is due to be available imminently. Suppliers will need to access this and upload their information to be able to bid in procurements after the law comes into force on 24 February 2025. Read more about the Central Digital Platform here.
Authorities will be able to use one of two procurement procedures for competitive processes: Open Procedure and Competitive Flexible Procedure. Direct awards will be available if the justifications in Schedule 5 of the Act are met (or where the direct award is being made in order to protect life). Authorities and suppliers should familiarise themselves with the new terminology and timescales, and ensure policies and processes are updated accordingly.
The number of notices that must or may be published by authorities in respect of procurement plans and decisions will significantly increase. While this means greater transparency for suppliers, for contracting authorities it means that work needs to be done in the lead up to 24 February 2025 and beyond to ensure procurement teams are aware of their obligations.
Contract management will be regulated to some degree by the Procurement Act 2023 and good contract performance will become significantly more important to suppliers’ ability to win future contracts. For all contracts with a value over £5m, authorities will have to set and publish three KPIs and then publish their assessment of compliance with these KPIs at least annually in a Contract Performance Notice.
In addition, under s.71(5), authorities will have to publish any instances of sufficiently serious breach of contract or performance failure by their suppliers for any regulated public contract (with some exceptions including Light Touch contracts).
Other authorities will be able to exclude bidders from procurement processes if a s.71(5) notice has been published in respect of any other contract and that authority considers that the circumstances giving rise to the exclusion ground are likely to occur again.
There will be an obligation on authorities to identify any potential or actual conflicts of interest in relation to a procurement and to take reasonable steps to mitigate these. This could include requiring a supplier to take steps to mitigate conflicts.
The conflict of interest rules will also cover any person acting for or on behalf of a contracting authority, including a person who influences a decision made by or on behalf of a contracting authority.
Authorities will be required before advertising a contract to prepare a conflicts assessment, which will then need to be kept under review and updated throughout the life cycle of the contract.
How are we helping you prepare?
As the implementation date approaches, we understand the challenges our clients are facing. Through our bespoke training programmes, delivered both in person and online, we’ve gathered insights into the key questions and concerns surrounding the Act. While some of these issues are complex, we’re committed to helping you navigate this new landscape.
To support your organisation, we’re excited to launch ProAct 23, a set of tools designed to assist with understanding, preparing for, and complying with the Act in England and Wales. ProAct 23 is a set of resources designed to assist with understanding, preparing for, and complying with the Act, giving practical, scenario based guidance on safe and effective procurement. Through Masterclasses (on-demand videos), topic guides and online resources (including a workbook), your clients will have a guide at their fingertips for the whole organisation.
To find out more about how ProAct 23 can help your organisation watch our introduction video here, or explore our dedicated ProAct 23 Basics page here, full of free resources to help get you started.
Overview Quick Links
Carbon capture storage / usage
Electric vehicle infrastructure
Grid
NESO announce pause in connection offers to allow grid connections reform
NESO 15 January 2025
Grid connections applications have continued to grow over the last year to the point that it is no longer possible to deliver connections reforms in parallel with the existing connections process. In 2023/24 alone, NESO received over 1,700 applications to connect to the national electricity transmission system, leaving more projects already in the queue than are required for the energy system in 2030 or even 2050
There is a new connection process but in the last two weeks paused all new connection offers to focus on reform and we do not know when that will end.
Procurement reform
On 24 February 2025, the Procurement Act 2023 will come into force, marking the most significant overhaul of procurement law in recent memory. While some of these issues are complex, we’re committed to helping clients navigate this new landscape.
Battery storage
'Europe's biggest battery farm' built on coal mine
BBC News 8 January 2025
Work is under way to create what has been described as Europe's largest battery storage project at Coalburn in South Lanarkshire.
Carbon capture storage / usage
Government publishes response to CCS Network Code Heads of Terms consultation
Department for Energy Security and Net Zero 13 January 2025
The Department for Energy Security and Net Zero has published the response to its December 2023 consultation on the proposed Heads of Terms for the Carbon Capture and Storage (CCS) Network Code.
Contracts signed for UK’s first carbon capture projects in Teesside
Department for Energy Security and Net Zero 10 December 2024
Thousands of new, skilled jobs will be supported in the North East of England as contracts for the first carbon capture, usage and storage (CCUS) projects in the UK are signed today.
District heating
UK government scraps plan to ban sale of gas boilers by 2035
Guardian 6 January 2025
The government is to scrap the 2035 ban on gas boilers in its new housebuilding standards.
Applications for Round 9 of the Heat Network Efficiency Scheme are now open
Department for Energy Security and Net Zero 31 December 2024
Applications for Round 9 of the Heat Network Efficiency Scheme are now open and will close on 28 March 2025.
Electricity
Two UK power station owners to get more than £12m for three hours of electricity
Guardian 8 January 2025
Uniper and a subsidiary of Vitol able to charge 50 times recent market price to ensure supply during evening peak.
Government launches consultation on modernising Capacity Market Rules
Department for Energy Security and Net Zero 16 December 2024
The consultation aims to modernise the Capacity Market rules and enhance the participation and delivery assurance of consumer-led flexibility, particularly through Demand Side Response (DSR) mechanisms.
Government publishes consultation response on electricity networks land rights
Department for Energy Security and Net Zero 2 December 2024
The Department for Energy Security and Net Zero has published the summary of responses to its August 2022 call for evidence on land rights and consents processes for electricity network infrastructure.
Electric vehicle infrastructure
Government opens consultation on supporting UK’s transition to Zero emission vehicles
Department for Transport 24 December 2024
This consultation seeks views on delivering the commitment to end the sale of new cars powered solely by internal combustion engines by 2030.
Government publish guidance for Cross-pavement solutions for charging electric vehicles
Department for Transport 24 December 2024
This guidance is designed to help local authorities in England to develop policies about the safe and effective use of cross-pavement solutions, which can provide residents with convenient charging options.
Energy efficiency
Government backs businesses cutting carbon emissions
Department for Energy Security and Net Zero 9 January 2025
25 businesses adopting emissions-cutting projects supported with £51.9 million as part of Plan for Change to drive economic growth and rebuild Britain.
Energy sector reform
Plan for Change to deliver jobs and growth in UK leading fusion industry
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 Chang.
UK Government responds to Climate Change Committee's 2024 progress report on reducing emissions
Department for Energy Security and Net Zero 17 December 2024
The government response to the report highlights the actions this government has taken since July 2024 to reduce emissions and seize on the economic opportunities of net zero.
Stronger protections and a better deal for consumers in review of energy regulator Ofgem
Department for Energy Security and Net Zero 19 December 2024
Government takes action to strengthen Great Britain's energy regulator.
Government sets out plan for new era of clean electricity
Department for Energy Security and Net Zero 13 December 2024
Government delivers on the Prime Minister’s Plan for Change to build an energy system that can bring down bills for households and businesses for good.
Hydrogen
UK signs first contracts for green hydrogen production
Low Carbon Contracts Company 20 December 2024
Low Carbon Contracts Company (LCCC) has announced the signing of the first three of eleven landmark hydrogen production contracts under Hydrogen Allocation Round 1.
Government publishes December 2024 hydrogen strategy market update
Department for Energy Security and Net Zero 17 December 2024
This publication sets out the 2024 progress in developing policies and projects across the hydrogen value chain and showcases a forward look of hydrogen plans in 2025.
Onshore wind
Record year for wind power in 2024
BBC News 7 January 2025
Wind generated nearly 83 terawatt-hours (TWh) of electricity across Great Britain (England, Wales and Scotland), up from nearly 79TWh in 2023, show figures from the National Energy System Operator (NESO).
Solar
Plans for 3,700 acres of solar panels on farmland
BBC News 16 November 2024
Kingsway Solar wants to install the panels on three parcels of land in south Cambridgeshire and build 14km (8.6 miles) of overhead power lines.
New Homes (Solar Generation) Bill rejected after second reading
BBC News 17 January 2025
A proposed law requiring all new homes to have solar panels suggested by Cheltenham's MP has been rejected.
If you would like to discuss any of the issues raised, please contact a member of our energy team.
