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This publication is licensed under the terms of the Open Government Licence v3.0 except

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Printed in the UK by HH Global on behalf of the Controller of His Majesty’s Stationery Office.

Powering Up Britain – Energy Security Plan

Contents

Introduction: A Plan for Britain’s Energy Security 2

1. Decisive Action for This Winter and Next 8

2. Enhancing Security of Gas Supply 14

3. Energy Efficiency and Clean Heat 21

4. A future of Cheap, Clean and British Energy 26

5. Markets and Affordability 60

6. Delivery Timelines 66

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©Crowncopyright2023ThispublicationislicensedunderthetermsoftheOpenGovernmentLicencev3.0exceptwhereotherwisestated.Toviewthislicence,visitnationalarchives.gov.uk/doc/open-government-licence/version/3.Wherewehaveidentifiedanythirdpartycopyrightinformationyouwillneedtoobtainpermissionfromthecopyrightholdersconcerned.Thispublicationisavailableatwww.gov.uk/official-documents.ISBN978-1-5286-4018-3E0288804303/23Printedonpapercontaining40%recycledfibrecontentminimum.PrintedintheUKbyHHGlobalonbehalfoftheControllerofHisMajesty’sStationeryOffice.PoweringUpBritain–EnergySecurityPlan1ContentsIntroduction:APlanforBritain’sEnergySecurity21.DecisiveActionforThisWinterandNext82.EnhancingSecurityofGasSupply143.EnergyEfficiencyandCleanHeat214.AfutureofCheap,CleanandBritishEnergy265.MarketsandAffordability606.DeliveryTimelines66PoweringUpBritain–EnergySecurityPlan2Introduction:APlanforBritain’sEnergySecurityThisPlansetsoutthestepstheGovernmentistakingtoensuretheUKismoreenergyindependent,secureandresilient.Putin’sillegalinvasionofUkraine12monthsagohasputtheneedforenergysecurityinstarkperspective.Neveragainwillweallowourenergysecuritytobethreatened.ThePrimeMinisterhastaskedthenewDepartmentforEnergySecurityandNetZerowithimprovingtheUK’senergysecurity,creatinggreaterenergyindependenceconsistentwithnetzeroandreducingtheriskofhigherbills.Energysecuritynecessarilyentailsthesmoothtransitiontoabundant,low-carbonenergy.Ifwedonotdecarbonise,wewillbelessenergysecure.Wewantourenergytobecheap,cleanandBritish.WewillbuildonourambitionssetoutintheBritishEnergySecurityStrategyandtheNetZeroStrategyforincreasingtheoverallshareofdomesticenergyproductionandreducingenergydemand.WewillmovetowardsenergyindependencebyaimingforadoublingofBritain’selectricitygenerationcapacitybythelate2030s,andweremainabsolutelycommittedtomaximisingthevitalproductionofUKoilandgasastheNorthSeabasindeclines.Thisisnotthesameasenergyisolationism.Britainneedsandbenefitsfromimportingenergy,nowandinthefuture.Ourownenergyproductionisalsokeytoourexportstrategysothatwecanworkwithourfriendsandalliesinsecuringaflexibleandresilientmarket,evenasweexportthesefuelstoourneighbours.Whereweneedtoimportenergy,wewillensurethisisbuiltonrelationshipswithstrong,trustedpartnersanddiversifiedsourcesofsupply.Butwerecognisethatwecannotbecomplacentandwillbuildinresiliencetooursystemtoensurethatiftherearedisruptionstoimports,consumersstillhaveareliablesupplyofenergy.ThisPlaniscomplementedbytheNetZeroGrowthPlan,withafocusonourlong-termdecarbonisationtrajectoryandhowitcanimprovetheUK’scompetitiveness,deliveranindustrialrenaissanceandlevelupthewholeoftheUK.ItshouldbereadtogetherwiththisPlan.PoweringUpBritain–EnergySecurityPlan3EnergysecuritymattersCheap,clean,andsecureenergyisnotpursuedasanendinitself.Itisessentialforenablingeconomicgrowth.Businessesandjobsinallsectorsaredependentonenergy.Britainledtheworldwiththeindustrialrevolution,offthebackofaplentifulsupplyofcoal.Afutureofabundantandcleanenergywillhelptoboostoureconomicprosperity,attractfutureinvestmentandsupportourindustrialheartlands.Thecheaperourenergy,thegreaterthecompetitiveadvantagewehave.Deliveringonenergysecurityalsounleasheshugeopportunitiesforthecountry.Asidefromreinvigoratingourindustrialcapability,wewillseethousandsofjobsprotected,createdandsecuredacrossourfournations.ThepoliciesandambitionswehavecommittedtointheNetZeroStrategyandBritishEnergySecurityStrategywillhelpleveragearound£100billionofprivateinvestmentintheperiodupto2030,aswedevelopnewindustriesandinnovativelow-carbontechnologies,andourambitionswillsupportupto480,000jobsin2030.Forfamilies,businessownersandworkers,energysecuritystartsinthehomeorworkplace.Itisassimpleaswhetherwecangettheenergywewant,whenwewantit,atanaffordableprice.Aswemakethetransitiontoasecureandlow-carbonelectricitysystem,affordabilitywillremainatthecentreofourthinking,andwewilltakestepstoensureBritainhasamongthecheapestwholesaleelectricitypricesinEuropeby2035.ItwasrightthattheGovernmentactedatspeedtosoftentheblowofincreasingprices,bypayingaroundhalfofatypicalhousehold’senergybillthiswinterandaroundhalfofwholesaleenergycostsforsomebusinesses.Butwemustlearnfromthelast12months,considerhowtheseschemesshouldevolvefromApril2024,targetsupporttothosewhomostneeditandtakestepstofixbrokenenergyretailmarketsforthelongterm.OurenergystrategyThisdoesnotmeanwehavetoredefineourstrategicapproachtoenergy.TheGovernmenthassetoutthroughtheTenPointPlanforaGreenIndustrialRevolutionandEnergyWhitePaperin2020,theNetZeroStrategyin2021andinlastyear’sBritishEnergySecurityStrategyaclearandconsistentsetofstrategicobjectivestoenablethetransformationoftheenergysystemsoitissecure,low-costandlow-carbon.Weremaincommittedtothesegoals,includingtheambitionsforcleanenergytechnologiessetoutintheBritishEnergySecurityStrategy.Demandforoil,gas,andotherfossilfuelswilldeclinebuttheyretainacrucialrole.Theyarecriticaltransitionfuels,keytoensuringsecureenergysuppliesandwillformanimportantpartofourfutureeconomy.WemusttakethenecessarystepstoensurewePoweringUpBritain–EnergySecurityPlan4canrelyonthesupplyofgasandoil,whetherfromdomesticproductionorfromimportingthesefuels.StrengtheningtheUK’senergysecurityandthetransformationoftheenergysysteminlinewithnetzerodemandssignificantlevelsofcapitalinvestment.TheGovernment’senergystrategycreatesawiderangeofoptionsacrossdifferenttypesofinfrastructuredeploymentforUKandinternationalinvestorsseekingattractiveopportunitiesfortheirfunds.SecuringourgassupplyTheUK’senergysecurityremainshugelydependentonareliable,resilientandaffordablesupplyofgas.Thiswinterwetookseveralcrucialstepstoensureoursupplyofenergyremainedrobust.Wesupportedanincreaseindomesticgasproduction,aswellaswelcomingCentrica’sreopeningoftheRoughgasstoragefacility,whichbroughton50%morestoragecapacity.Ourmarketsandsystemrespondedwelltoensureourenergysystemwassuppliedatalltimes.Wehavelearntfromourexperiencesofthelastyearandwillbuildonthistoensuresecuresuppliesovernextwinterandoverthelongerterm.Thefuturedemandforgaswilldeclineaswedecarbonise.Wewillengagewithindustry,consumergroupsandotherstakeholderstodiscussthefutureofthegassystemandhowwecansecurethenecessarylevelsofinvestmentinresilient,efficientinfrastructureaswetransitiontoacleanenergysystem.SecuritythroughstronginternationalpartnershipsWecannotachievethisinisolation.Ourinternationalrelationshipsarecrucialtoachievingourdomesticandglobalobjectives.Thiswinter,weworkedcloselywithkeyinternationalpartners,includingEuropeanpartners,tomonitorandshareinformationonenergysupplyanddemand,andpreparednessforthewinter.Thiswascentraltoensuringreliablesupply.BeyondtheEUweworkwithstrongtrustedpartnersandalliesincludingthroughourStrategicEnergyDialoguestohelptacklenationalandglobalenergychallenges.Arapidshifttocleanenergygenerationandgreaterenergyefficiencyprovidesthemosteffectiveroutetoensuringbothclimateandenergysecurity,helpingtoavoidrisksassociatedwithdependencyonfossilfuelimports.Wehavebeenworkingtoachievethisglobally,includingwithourG7partners,andmorelocallyintheNorthSea.PoweringUpBritain–EnergySecurityPlan5Thistransitionreliesoncriticalmineralsandthereisanimpendingriskthatmineralsmarketsbecometighter,withthepotentialforpricespikesandsupplychaindisruptions.Globally,thedemandforcriticalmineralsmayquadrupleby2040.Asaresult,thesecurityofandaccessibilitytoessentialcriticalmineralssupplychainsisarisingpriorityfortheUKandmanyofourallies.Tosupportthisworkinternationally,inthelastyearwehaveannouncedapartnershiptodeepencollaborationonmineralsminingandenergywiththeRepublicofSouthAfrica,andcollaborationswithCanadaandKazakhstanoncriticalminerals.Afutureofcheap,cleanandBritishenergyThebestwayofprotectinghouseholdsandbusinessesisbyloweringthecostsoftheenergyweconsumeandreducingthevolumesused.Thismeanstakingfurtherstepsonenergyefficiencyandbuildingoutalow-cost,low-carbonenergysystemwhichreducesourrelianceonfossilfuels.TheEnergyWhitePaperandtheNetZeroStrategysetoutourapproachtotransformingtheenergysystem,movingfromfossilfuelstohome-grown,cleanenergytoeliminateemissionsandtackleclimatechange.TheBritishEnergySecurityStrategysetoutthekeyactionstoacceleratedeliveryofcleanenergy,recognisingitsimportanceindeliveringourclimategoalswhilstsimultaneouslyprovidingenergysecurityandsecuringgreaterenergyindependence.Howmuchenergyweuseandthewaysinwhichweuseitareessentialcomponentsofenergysecurity.Reducingenergyconsumptionbyinvestinginenergyefficiencymeasureshelpskeepbillsaffordableandmakesusmoreenergysecure.Buildingasmartandflexibleenergysystemthatactivelymanagesthescaleandnatureofdemandwillenableamoreefficient,secureandlowercostsystem.Ourstrategytoincreasesupplyoflow-carbonenergyisdependentonenhancingourstrengthsonwind,solarandnuclearpowergenerationalongsidehydrogenproductionandcarboncapture,usageandstorage.Thisincludestheinfrastructuretoproduce,storeandtransportlow-carbonenergyaroundthecountryandtocapture,transportandstorecarbondioxide.Weaimtoremovebarriersandaddressblockages,whilstdevelopingnewoptions.AnevolvingplanThisPlan,andthecomplementaryNetZeroGrowthPlan,donotsetouteveryactionwewillneedtotakeoverthenextdecadetodeliverthetransitiontoacheap,cleanandsecureenergysystem.Determiningtheexactconfigurationofthefutureenergysystemisnotsensible.Weneedtoretaintheflexibilitytoadapttochangingcircumstances,developPoweringUpBritain–EnergySecurityPlan6marketframeworksthatincentivisealow-cost,reliablesystemandprovidetheopportunityforinnovationtodevelopnewapproachesanddrivedowncosts.Togethertheseplanssetouttheactionswearetaking,andthetimelineforissuesthatneedfurtherwork,providingcertaintytotheindustry,toinvestorsandtotheBritishpubliconthedirectionofgovernmentpolicyandourcommitmenttodelivery.SomeoftheactionswesetoutininthisPlanareinresponsetorecommendationsmadeintheIndependentReviewofNetZero,ledbytheRtHonChrisSkidmoreMPandpublishedinJanuary2023.FurtherdetailonthereviewanditsrecommendationscanbefoundintheNetZeroGrowthPlananditsannexes.Wewillcontinuetoreviewourplans,drawingonadvicefromexpertstotestourapproachandadjustourcoursetoensurethatweremainontracktodeliverourobjectiveforareliable,low-costenergysystem,onewhichremainsconsistentwithournetzerotarget.DeliveryofthecommitmentsinthisPlanwillbeinaccordancewiththedevolutionsettlementswithScotland,WalesandNorthernIreland.PoweringUpBritain–EnergySecurityPlan7OurKeyCommitmentsWewillissueanupdatebytheautumnlookingatthefuturerolethatgasstorageandothersourcesofflexibilitycanplayingassecurity.WewilldelivervitalenergyefficiencyupgradesthroughtheGreatBritishInsulationSchemeandwillextendtheBoilerUpgradeSchemeto2028tofurtherencouragetheadoptionofcleanheattechnologies.WewillsetupGreatBritishNuclear,withtheresponsibilitytoleaddeliveryofthenewnuclearprogramme,backedwiththefundingitneeds.WearelaunchingacompetitiveprocesstoselectthebestSmallModularReactortechnologies,withthefirstphasecommencinginApril2023.WearelaunchingtheFloatingOffshoreWindManufacturingInvestmentScheme,toprovideupto£160milliontokickstartinvestmentinportinfrastructureprojects.Wewillpublishactionplansthisyearonreducingthedevelopmenttimefortransmissionnetworkprojectsandonacceleratingelectricitynetworkconnections.WeareannouncingtheTrack-1negotiationprojectlistofcarboncaptureprojects,willlaunchaprocesstoenableexpansionoftheTrack-1clustersandhavelaunchedTrack-2oftheCCUSclustersequencingprocesstoestablishtwofurtherCCUSclusters.Weareannouncingashortlistofprojectsforthefirstelectrolytichydrogenproductionallocationround(capitalco-fundingandrevenuesupport)whichweintendtoenterduediligencewithandintendtolaunchasecondallocationroundinQ42023.WeareannouncingsuccessfulapplicantsofthefirstcompetitionwindowforStrands1and2oftheNetZeroHydrogenFund(developmentandcapitalco-funding)andintendtolaunchasecondcompetitionwindowinthespring,toberunbyUKRI.WearepublishingforconsultationrevisedenergyNationalPolicyStatementswhichunderlinethenationalneedfornewenergyinfrastructurewiththeintentionofexpeditingplanningprocesses.Weintendtoconsultinsummer2023onoptionsforanewapproachtoconsumerprotectionintheenergymarketsfromApril2024onwardsandonthefutureofthepricecapondefaulttariffs.WeaccepttheIndependentReviewofNetZerorecommendationthatGovernmentshouldcommittooutliningaclearapproachtogasvs.electricity‘rebalancing’bytheendof2023/4andshouldmakesignificantprogressaffectingrelativepricesbytheendof2024.PoweringUpBritain–EnergySecurityPlan81.DecisiveActionforThisWinterandNextPoweringUpBritain–EnergySecurityPlan9DecisiveActionforThisWinterandNextTheGovernmenthastakendecisiveactionoverwinter2022-23toavertsupplyconstraintsandtosupporthouseholdsandbusinesseswithrisingenergybills.OurgasandelectricitysuppliesGasfromtheUKContinentalShelf(UKCS)andtheNorwegianContinentalShelfformsthemajorityofBritain’sgassupply(averageof80%across2017-21).However,LiquifiedNaturalGas(LNG)playsanincreasinglyimportantrole.Thesesourcesaresupported,duringtimesofpeakdemand,byimportsthroughinterconnectorswiththecontinent.Meanwhile,Britain’selectricitymarketishighlydiversified,withapproximately40%generatedfromrenewablesand15%fromnuclearin2021.However,asignificantproportion(around40%in2021)ofelectricitygenerationisprovidedbygas-firedpowerstations,whichisparticularlyimportantduringpeaksindemandandwhenrenewablegenerationislow.Securityofsupplyinwinter2022-23WhileBritainhaslittledirectexposuretoRussiangas,whichconstitutedonlyfourpercentofgassuppliedtotheUKin2021,wefacesignificantindirectimpactsthroughourlinkstoEuropeangasnetworksandglobalLNGmarkets.Broadlyaveragetemperatureshaveassistedenergyresiliencethiswinter.However,thecoldspellduringthefirsthalfofDecember2022wasoneofthemostsignificantspellsoflowwintertemperaturessinceDecember2010.Securityofgassupplyinwinter2022-23Inthefaceofthesechallenges,ourmarketsandoursystemrespondedwellwithourgassystemwellsupplied,includingthroughtheDecembercoldsnap,whichsawthehighestdailygasdemand(416millioncubicmetreson15December2022)sincethe‘BeastfromtheEast’in2018.Wetookseveralcrucialstepstosecureourgassupply.Wesupportedanincreaseindomesticgasproduction,andcollaboratedcloselywithourinternationalpartners,includingtheEuropeanUnion,Norway,QatarandtheUS,toshareinformationaboutenergysupplyanddemand,andaboutourcollectivepreparednessforthewinter.WereceivedsignificantlyaboveaverageLNGdeliveriesinQ42022,inadditiontoreliablegasflowsfromtheUKContinentalShelfandNorwegianContinentalShelfinlinewithpreviouswinters.ThishashelpedusmaintainhealthylevelsofstoragethroughoutthisPoweringUpBritain–EnergySecurityPlan10winter(81%onaveragefromthe1stOctoberto19thFebruary)andfacilitatedhighlevelsofnetexportstomainlandEurope,withBritainactingasadeliveryhubtosupportEUstates’effortstofillgasstoragepriortowinter.Thisreversedhistoricalpatterns,inwhichtheUKexportsgastothecontinentoverthesummerandimportsoverthewinter.SourcesofGBGasSupplyNovember22–January23Source:NationalGridQ4UKLiquefiednaturalgasimportsSource:ICISLNGEDGE(IndependentCommodityIntelligenceServices)Inspring2022NationalGasTransmissionreviewedtheOperatingMargins(anadditionalflexibilitythatisavailableundertimesofspecificsystemstress).Thisresultedinanadditional11millioncubicmetresbeingprocuredfrom1December2022,bringingthetotalgasprocuredundertheOperatingMarginto90millioncubicmetresforwinter2022-23.PoweringUpBritain–EnergySecurityPlan11InOctober2022,theRoughgasstoragefacilityreopened,representinganincreaseinBritishgasstoragecapacitythiswinterofapproximately50%.Itisanimportanttooltobolsterourenergysystem’sresilience.Securityofelectricitysupplyinwinter2022-23Asiscommonduringthewintermonths,therehavebeensomedaysonwhichelectricitymarginsbetweendemandandsupplyhavebeen'tight',butwehavemaintainedsecuresuppliesthroughout.Ourelectricitysystemhasinherentstrengthswhichsupportsecurityofsupply.Webenefitfromadiverseelectricitymix,includinginterconnectiontoothercountriesthatcanmakeavaluablecontributiontosecurityofelectricitysupply,offeringmutualsupport.Inaddition,theCapacityMarketensuresthecountrycancountonasecuresupplyofpowerevenwhendemandishigh.Powergeneratedbytypeinwinter2022-23Source:NationalGridESOHowever,NationalGridElectricitySystemOperator(ESO)putinplaceadditionalmeasuresonaprudentbasisthiswintertobereadyintheeventofgasshortagesforelectricitygenerationorreducedimportsofelectricitythroughinterconnectors.ItlauncheditsDemandFlexibilityService,payingconsumerstoreduceconsumptionduringperiodsofpeakdemand.Operatingontwoeveningpeaksduringthewinter,theServicehelpedensurehealthyoperatingmarginsweremaintainedontheelectricitysystem.Theschemealsodemonstratedthepotentialofmanagingdemandflexiblytobolsterenergysecurity,aswellasthewillingnessofconsumerstoparticipate.PoweringUpBritain–EnergySecurityPlan12TheGovernmentalsowelcomedmeasuresbytheESOtokeepBritain’sremainingcoalplantsavailable,ifcalledupontoprovideadditionalgenerationcapacity.Thisprudentsteprepresentedfurtherinsuranceagainstshortfallsinsupply.SupportforhouseholdsandbusinessesHistoricallyhighwholesaleenergyprices,drivenbyrisinginternationalgasprices,haveaddedsignificantpressuretohouseholdandbusinessenergybills,drivinginflationupandmakingthecostoflivingarealchallengeformanyfamilies.Wetookswiftanddecisiveactionatunprecedentedscaletosupporthouseholdsandbusinesses,throughtheEnergyBillsSupportSchemeuntilMarch2023andtheEnergyPriceGuaranteeuntilMarch2024fordomesticconsumers,andtheEnergyBillsReliefSchemeuntilMarch2023andtheEnergyBillDiscountSchemeuntilMarch2024fornon-domesticenergyconsumers.Additionalsupportforthemostvulnerablehouseholdsisavailablethroughspecificcostoflivingpayments.Withoutthedomesticschemes,thetypicalhouseholddualfuelbillwouldhavemorethantripledbetweenOctober2021andJanuary2023.AsannouncedattheSpringBudget,wearekeepingtheEnergyPriceGuaranteeat£2,500foranadditionalthreemonthsfromApriltoJune.Thismeanswewillhavecoverednearlyhalfatypicalhousehold’senergybillthroughtheEnergyPriceGuaranteeandEnergyBillsSupportSchemesinceOctober-withatypicalfamilysaving£1,500.TheEnergyPriceGuaranteewillalsoeliminatethepremiumpaidbyhouseholdsonprepaymentmetersfrom1stJuly.ThiswillcutenergybillsforoverfourmillionfamiliesacrosstheUKbybringingtheircostsintolinewiththosepaidbycomparablecustomersondirectdebits.TheGovernmentsupportsOfgem’songoingworktoreviewprepaymentmetercostsandhasaskedtheregulatortoreportbytheautumnonanyadditionalregulatoryoptions,includingoptionsforendingtheprepaymentmeterstandingchargepremium,sothattheyarereadyforimplementationwhentheEnergyPriceGuaranteeendsinApril2024.Allsavingsderivedfromequalisingtheunitcostsofprepaymentmeteranddirectdebitcostsarerequiredtobepassedonbysupplierstotheirconsumers.PreparingfornextwinterandbeyondTheongoinggeopoliticaluncertaintycausedbyRussia’sinvasionofUkrainemeansweexpecttheUKandmainlandEuropetoexperiencesimilarpressuresonenergysecuritynextwinterasthoseseenin2022-23.ThisPlansetsouthowwearegoingtobuildontheexperienceofthelasttwelvemonthstoensurethatallpotentialoptionstobolstersecurityofsupplyareexplored.PoweringUpBritain–EnergySecurityPlan13Ourfocuscannotbelimitedtotheshortterm.Evenwhenwemeetournetzerotargetsin2050,wearestilllikelytorequiregas,andwewillstillneedoilformanufacturingessentialproductssuchasplastics,medicines,andfertiliser.Thisisconsistentwithachievingournetzerotargetiftheiruseiscombinedwithcarboncaptureandstorage,andanyresidualemissionsarebalancedbynegativeemissionsfromgreenhousegasremovaltechnologies.Takingtheseconsiderationstogether,thismeansweneedtosupportmaximisingtheproductionofUKoilandgasastheNorthSeabasindeclinesandminimiseourrelianceonoverseasimports.Over-relianceonoverseasLNGimportsislesssecure,andsignificantlymorecarbonintensivefromaglobalperspectivecomparedtoUKgas,havingonaveragedoubletheemissionsintensity.However,evenwithcontinuedexplorationandproduction,annualproductionofgasisexpectedtofalltoaround30%ofcurrentlevelsby2035duetothedecliningreservesinthebasin.Itisexpectedtoremainbelowtheprojecteddemandforgasoutto2050.SowealsoneedtoensurethatwheretheUKstillneedstoimportenergy,thoseimportsarebuiltonrelationshipswithstrong,trustedpartnersanddiversifiedsourcesofsupply.Andweneedtoensurethatourimportandstorageinfrastructureisresilientsothatiftherearedisruptionstoimports,consumersstillhaveareliablesupplyofenergy.Naturalgassupplyanddemand,2022to2037Source:DepartmentforBusiness,EnergyandIndustrialStrategy(NetZeroStrategy,2021)PoweringUpBritain–EnergySecurityPlan142.EnhancingSecurityofGasSupplyPoweringUpBritain–EnergySecurityPlan15EnhancingSecurityofGasSupplyOurKeyCommitments•Wewillissueanupdatebytheautumnlookingatthefuturerolethatgasstorageandothersourcesofflexibilitycanplayingassecurity.•WewilltasktheFutureSystemOperatortoconductagassupplysecurityassessment,andtoassumeawholesystemcoordinationroleforimprovingthesecurityandresilienceofourenergysystems.•WehavelegislatedtochangetheWobbeNumbermeaningagreatervolumeofgascan,fromApril2025,beinjectedintotheNationalTransmissionSystemwithouttheneedforblending.•Wewillconsultonintroducingapolicyframeworkforbiomethanefrom2026tofollowthecurrentGreenGasSupportScheme.Gaswillcontinuetoplayadecliningbutstillsignificantroleinourenergysystemfordecadestocomeanditisessentialwetakeactiontostrengthenthesecurityofourgassupplies.DrawingfromthelessonswehavelearntsincePutin’sinvasionofUkraine,theGovernmentwillputinplacemeasurestoensurewehavethesuppliesweneedforthelongtermandincreasedresilienceinthegassystemtowithstandsupplyshocks,iftheydooccur.Wewilldothisby:•MaximisingsupplyofUKgas,•Maintainingandsecuringourgasimportandexportcapacity,•Increasingsystemresilience,•Ensuringlongterminvestmentingasnetworks.MaximisingsupplyofUKgas33rdLicensingRoundDeliveringonthecommitmentmadeintheBritishEnergySecurityStrategy,theNorthSeaTransitionAuthoritylaunchedthe33rdoilandgasexplorationlicensingroundinOctoberlastyear,attractingatotalof115bids.TheAuthorityisanalysingthebidsandisexpectedtoawardthefirstlicencesfromthesecondquarterofthisyear.AcceleratingproductionTheBritishEnergySecurityStrategyalsoannouncedtheGasandOilNewProjectsRegulatoryAccelerators,across-regulatorinitiativethatisaimingtocuttheapprovaltimesforconsentstopotentiallybringforwardproductiondates,subjecttoenvironmentalconsiderations.Acceleratingtheregulatoryprocesswillbenefitthedevelopmentofprojectsthatareawardednewlicencesin2023,aswellasexistingprojectsthatalreadyhavealicenceandareworkingtheirwaythroughtheregulatoryprocesstobeconsideredPoweringUpBritain–EnergySecurityPlan16forconsent.Regulatorsnowmeetonaregularbasistodiscussupcomingdevelopmentsandtoworkonstreamliningprocesses.EarlyengagementmeetingshavealreadytakenplaceonseveralprojectsacrosstheUKContinentalShelf.Supportinglong-terminvestmentTheGovernmentrecognisesthatfiscalpolicyplaysanimportantroleinsecuringlong-terminvestmentintheUKContinentalShelfandsupportingthesectortomaximisedomesticproductionofgas.TheGovernmenthasannouncedareviewintotheUK’slong-termfiscalregimeforoilandgas,toensurethatitdeliverspredictabilityandcertainty,supportinginvestment,jobsandthecountry’senergysecurity.UpdatestoGasSafetyManagementRegulationsTheGovernmenthaslegislatedtolowertheWobbeNumber,whichisusedtomeasuregasquality,byachangetotheGasSafety(Management)RegulationswhichwillcomeintoforceinApril2025.ThismeansthatagreatervolumeofgasfromtheUKContinentalShelfcan,fromthen,beinjectedintotheNationalTransmissionSystemwithouttheneedforblending.Atpeaktimes,weexpectthistoincreasethevolumeofUKContinentalShelfgasbyover1%ofbaselineproductioninthesecondhalfofthe2020s(oralmost1millioncubicmetresperday).ThischangewillalsoenhanceresilienceofUKsupplies.MaintainingandsecuringourgasimportandexportcapacityInterconnectorsGaspipelinesconnectBritaintocontinentalEuropeandtheislandofIrelandforthetransmissionofnaturalgas.TherearecurrentlythreegasinterconnectorswhichconnecttoBritain’sNationalTransmissionSystem:•InterconnectorLtd,abi-directionalpipelineconnectingBelgiumandtheUK,•TheBalgzandBactonLine,abi-directionalpipelineconnectingtheUKandtheNetherlands,•TheMoffatInterconnectionPoint,aunidirectionalinterconnectorpipelinethatflowsgasfromBritaintoIreland,NorthernIreland,andtheIsleofMan.Eachpipelineisgovernedbyaninternationalagreementwiththerelevantstateontheotherendoftheinterconnection.Theseagreementssetouttheresponsibilitiesofeachstatewithrespecttothecross-borderinterconnectorandprovideaframeworkforsettlingdisputesbetweentheparties.TheagreementswithEUmemberstatesareunderpinnedbytheTradeandCooperationAgreementbetweentheUKandtheEU.Theefficientfunctioningofourinterconnectorsisunderpinnedbyinternationalagreementsandregulardialogues.Thesedialoguesarealsoanopportunitytodiscussandenhancetheagreementsthatgovernthesepipelines.TheGovernmentisinthefinalstagesofagreeingaMemorandumofUnderstandingongassecurityofsupplywithIreland.ThiswillenhancecooperationongassecurityandemergencypreparednessacrossGreatBritain,NorthernIreland,andIreland.PoweringUpBritain–EnergySecurityPlan17LiquefiednaturalgasimportsTheUKhasthesecond-largestliquifiednaturalgas(LNG)importcapacityinEuropeandislocatedclosetomajorcentresofdemandforgasinnorthwestEurope,whichhelpstoattractLNGtoourcountry.Wehavethreeimportterminalswithatotalannualimportcapacityofaround48billioncubicmetresandestimatedpeaksupplyof141millioncubicmetresperday:•GrainLNG,ontheIsleofGrain,•SouthHookLNG,inMilfordHaven,•DragonLNG,inMilfordHaven.TheGovernmentisworkingwithindustrytoincreaseLNGimportcapacityandmakebestuseofexistingfacilities.TheoperatorsoftheGrainandSouthHookLNGterminalsareinvestinginupgradestotheirfacilitiestoincreasecapacity.TheupgradeatGrainLNGisalreadyunderwayandwilldeliveranincreasetotheterminal’sannualimportcapacityin2025.SouthHookLNGannouncedafinalinvestmentdecisioninNovember2022toproceedwithplanstoincreaseterminalcapacity.Oncecompleted,thetwoprojectswilltogetherincreasetheUK’sLNGimportcapacitytoaround59billioncubicmetres.Inadditiontothis,asmallnumberofcommercialfirmsaredevelopingproposalstoinstallfloatingLNGimportterminalsknownasfloatingstorageandregasificationunits(FSRUs),whichcouldfurtherincreasetheresilienceoftheUK’sgasimportationcapability.TheDepartmentofEnergySecurity&NetZero,togetherwithNationalGasTransmissionandOfgem,areworkingwiththesepartiestosupportthesedevelopments,asoncemooredandconnectedtotheexistinggastransmissioninfrastructure,anFSRUisabletoreceiveLNGcargosfromtheglobalmarketandre-gasifythemreadyforinjectionintotheNationalGasTransmissionSystem.AnFSRUcanbequicklylinkedtotheUKgasnetworkwithouttheneedforextensivenewinfrastructure;andcanbereadilyre-deployedtoothermarketsshouldtheUKnolongerrequiretheadditionalcapabilityinthefuture.AnewUK-USEnergySecurityandAffordabilityPartnershipwasannouncedbythePrimeMinisterandPresidentBideninDecember2022.Thefocusofthisisonenergyefficiency,gassupply,nuclearcollaboration,andinternationalcooperation.ThePartnershipincludedacommitmentthattheUSwillstrivetoexportatleast9-10billioncubicmetresofLNGin2023viaUKterminals.InternationalrelationshipsWearesecuringenergysuppliesbyensuringthatwheretheUKisdependentonimportsthoseimportsarebuiltondiversifiedsourcesofsupplyandrelationshipswithstrong,trustedpartnersandallies.WeareworkingwiththeEUthroughtheUK-EUSpecialisedCommitteeonEnergy,andbilaterallywithourconnectedcountries,tobebetterpreparedforwinterandtohavegreaterenergysecurity.BeyondtheEU,ourStrategicEnergyDialogueshelptoaccelerateourinternationalenergyprioritiesbybringingtogethergovernmentstosharebestpracticeandidentifyprojectsandPoweringUpBritain–EnergySecurityPlan18partnershipsthatwillachievesharedgoals.Discussingourenergypolicywithpartnersinthiswayplaysacrucialroleinhelpingtacklenationalandglobalenergychallenges.WehaveStrategicEnergyDialogueswithvariouscountries,includingtheUSA,Qatar,Norway,Japan,andChina.AttheUK-USStrategicEnergyDialogueinFebruary2023,energyministersdiscussedthecurrentstateofglobalenergymarketsandtheircountries’leadingrolesinaddressingimmediateenergysecurityconcerns,particularlyasaresultofRussia’sillegalinvasionofUkraine,aswellaslong-termsupportforglobalandregionalenergysecuritythroughtheadvancementofcleanenergytechnologies.IncreasingsystemresilienceFutureSystemOperatorTheforthcomingestablishmentoftheFutureSystemOperator(FSO),withrolesacrosstheelectricityandgassystemsandalegislativeobjectivetoensuresecurityofsupply,providesanopportunitytostrengthenourgasandelectricitysecurityofsupply.TheGovernmentthereforeintendstogivetheFSOtwonewfunctionsinrelationtosecurityofsupply.Firstly,tocomplementexistingsecurityofsupplystandardsfocussedonsupplyinfrastructurecapacity,theFSOwilldeliveranewmediumrangeGasSupplySecurityAssessment.Thisassessmentwillconsidergassuppliesaccordingtoavailability,reliabilityanddeliverabilityagainstapeakdemandscenarioattheendofwinter,acrossafive-to-tenyeartimehorizon.WeexpectthisnewassessmenttoformthebasisofadvicefromtheFSOtoGovernmentandOfgem,andinformationtowiderindustry.ThisassessmentwillinformactionsthatareneededbyNationalGasTransmission(NGT),FSO,andwiderindustrytomaintainsecurityofenergysupplyacrosstheGBsystem,includinginvestmentwhereneeded.TheAssessmentisbeingdevelopedwithinputfromindustry,andtheGovernmentwilllooktopublishthemethodologyinsummer2023,alongsideaplanforimplementation.Wewillalsobereviewingtheexistinggasinfrastructurestandardsthatinformnetworkcapability,andbyextensionavailabilityandreliability,ofassociatednetworkassets(NGTand/orothers)toacceptandefficientlytransportthegassuppliestomeetdemand.Secondly,theFSOwillalsotakeonawholesystemcoordinationroleforimprovingthesecurityandresilienceofgasandelectricitysystems,andtheinteractionsbetweenthem.ThisrolewillalsoincludeanemergencymanagementfunctionthatwillworkwithexistingGovernmentstructuresandrelevantkeystakeholderstoprovideeffectiveincidentmanagement.TheGovernmentandOfgemwillconsultonthedetailofthisnewrolethissummer.PoweringUpBritain–EnergySecurityPlan19TheGovernmentwillworkcloselywiththeElectricitySystemOperator,NGT,Ofgemandotherstoensurethisroleistakenoninsuchawaythatgasandelectricitysupplysecurityneedsaremet,whileensuringthisdoesnotimpactonthetransitiontotheFSO,oronitsabilitytodischargeothervitalfunctionsonceestablished.GasstorageTheUK’sgasmarketandstoragehasoperatedsuccessfullyduringthiswinterandhelpedtomeetdemandcausedbycoldweatherspells.However,aspartofthewidermeasuresweareexploringtoenhanceourgassecurityofsupply,wewillconsiderthefuturerolethatstorage,andothersourcesofflexibility,canplaylonger-term,takingaccountoftheneedtoalignwithfutureplansforhydrogenandCO2storage.Aspartofthis,wewillconsiderifthereisaneedforgreaterUKgasstoragecapacity.Weplantoissueanupdateonthisworkbeforetheautumn,settingoutnextsteps.ReducingdemandatpeaktimesforenergysecurityAstheUKhasaresilientenergysystemunderpinnedbydiversesourcesofgassupply,ithasnotbeennecessarytoimplementadditionalnewdemandreductionmeasuresforenergysecurity.NationalGasTransmission,astheGasSystemOperator,implementedaseriesofreformstoitsexistingDemandSideResponseSchemeforwinter2022-23,designedtoincentiviseindustry,shippersandconsumerstoparticipateinthescheme.TheGovernmentisworkingwithNGTtoincreasetheavailablevolumesforindustrialdemandreductionforwinter2023-24andinvestigateoptionsforhowdomesticandsmallerbusinessgasconsumerscouldparticipatemoreinfutureschemes.EnsuringlongterminvestmentingasnetworksLong-termdecarbonisationandgassecurityofsupplyFuturedemandforgaswilldeclineaswedecarbonise,albeitwiththepeakdemandexpectedtostayhighduringthistransition.Thismeansthatthegassystemwillneedtochangetomaintainresilienceagainstincreasinglydynamicandunpredictablerequirements.Inthefuturedirectuseofnaturalgasinhomeswillreduce,withlow-carbonalternativestakingitsplace.IncreasingvolumesofdomesticallyproducedbiomethanewillbeinjectedintothegasgridthroughtheGreenGasSupportScheme(GGSS)whichwillreducecarbonemissions,decreaserelianceonnaturalgasandprovidediversityingassupply.TheGGSSwilldeliverenoughbiomethanegasgridinjectiontoheataround200,000homesperyearatpeakproduction.WewillconsultonintroducingapolicyframeworkforbiomethanetofollowthecurrentGGSS,whichclosestonewapplicantsin2025.Hydrogenhasthepotentialtoformanincreasingpartoftheenergymix.Otherlow-carbontechnologies,suchasheatpumps,willalsoreducethedemandforgas,alongsidemoreenergyefficiencymeasuresinourhousingstock.PoweringUpBritain–EnergySecurityPlan20TheGovernmentrecognisesthattheimplicationsofthetransitiontocleanenergycouldcreateuncertaintyinthegasmarket,includingforconsumers.Wewillactdecisivelytomitigatethisrisk.Aslongasnaturalgasremainsanimportantpartofourenergymix,wewillcontinuetoensurethatconsumerscanrelyonsecuregassuppliesataffordablepricesviaanappropriatelyresilientandflexiblenetworkthatisalsoefficientlyregulated.Thiswillrequiretherightgovernance,marketsandinfrastructure.Wewillworkwithindustry,consumergroupsandotherpartnerstounderstandtheimpactofdeliveringnetzeroongasinfrastructure,marketparticipantsandconsumers.Thiswillenableustodeterminehowthegassystemwillneedtoevolvetoensurethemarketandregulatorysignalsareinplacethatincentivisetherightlevelofinvestmentandmaintenancethroughoutthetransition.Wewilladdresstheimplicationofthetransitionforconsumers,particularlyhouseholdsinfuelpoverty,sothatsupportcanbeprovidedtothosewhomostneedit.PoweringUpBritain–EnergySecurityPlan213.EnergyEfficiencyandCleanHeatPoweringUpBritain–EnergySecurityPlan22EnergyEfficiencyandCleanHeatOurKeyCommitments•WewilldelivervitalenergyefficiencyupgradesthroughtheGreatBritishInsulationScheme.•WewillextendtheBoilerUpgradeSchemeto2028tofurtherencouragetheadoptionofcleanheattechnologies.•WeareannouncinganextensiontotheIndustrialEnergyTransformationFund,increasingtotalgrantfundingavailableby£185million.Energysecurityisnotjustaboutaddingcapacityorstrengtheningtheresilienceofthesupplyside.Thecountrywillbemoreenergysecureifwealsolowerourdemand,whichcanbedeliveredthroughmoreenergyefficientbuildingsandproductsorappliances,aswellasmoreefficientlow-carbonheatingsystemsandindustrialprocesses.Energyefficiencymeasuresinthefabricofourbuildings,suchasloftandcavitywallinsulation,willleadtolessdemandontheelectricityandgasgrids,whichinturncouldhelpusreduceourneedforimportedfossilfuelsandmitigatetheimpactofhighandvolatileinternationalgasprices.Thiscouldalsoreduceenergybillsforbusinessesandconsumers,aswellashelpingvulnerablehouseholdsoutoffuelpoverty.Moreenergyefficientbuildingsalsocomplementmoreefficient,low-carbonheatsources,reducingconsumptionfurther.Forexample,airsourceheatpumpsarearoundthreetimesmoreefficientcomparedtofossilfuelboilers.Usinglessenergymeanslowercarbonemissions,whichhelpstheUKmeetournetzerocommitments.Improvingbusinessenergyefficiencybringsbenefitsbeyondenergysecuritytoo,makingUKfirmsmorecompetitive,drivinginnovationandloweringthecostofdecarbonising.TheGovernmenthassetanewandambitioustargettoreducefinalenergydemandfrombuildingsandindustryby15%by2030.Wearepursuinganintegratedprogramme,including:•Improvingtheenergyperformanceofbuildings,•Supportingtheroll-outofenergyefficientproducts,•Exploringhowtheenergyretailmarketcansupportimprovedenergyefficiency,•Deliveringourcommitmenttoreplacefossilfuelheatingwithcleanheatalternatives,•Improvingenergyefficiencyacrossallbusinessesandindustrialprocesses.Ourprogrammeisunderpinnedby£6.6billionofpublicspendinginthisParliament,withacommitmenttoprovideafurther£6billionfortheperiod2025-28.TheGovernmenthasalsocreatedanewEnergyEfficiencyTaskforce,chargedwithdrivingimprovementsthatwillbringdownenergybillsforhouseholdsandbusinesses,aswellasforthepublicsector.PoweringUpBritain–EnergySecurityPlan23ForwardlookImprovingtheenergyefficiencyofourbuildings•Alongsidethisdocumentwearepublishing,followingconsultation,ourplansforanewEnergyCompaniesObligationscheme–theGreatBritishInsulationScheme.BasedonproposalsannouncedlastyearasECO+,thiswilldeliver£1billonadditionalinvestmentbyMarch2026inenergyefficiencyupgrades,suchasloftandcavitywallinsulation.ItwillextendhelptoawidergroupofhouseholdsintheleastefficienthomesinthelowerCounciltaxbands,aswellasboostinghelpforthoseonthelowestincomes.Weplantolaylegislationbythesummertotakeitforward.•TheFutureHomesStandardforhomesandFutureBuildingsStandardfornon-domesticbuildingsaredesignedtoensurethatnewbuildingsarebuiltwithlow-carbonheatingandhighlevelsofenergyefficiency.WewillconsultonthetechnicalspecificationfortheFutureHomesStandardandFutureBuildingsStandardin2023andintendtointroducethenecessarylegislationin2024toimplementbothfrom2025.•WewillprovidegrantfundingtoarangeoforganisationstotestnovelgreenfinanceproductsthroughtheGreenHomeFinanceAccelerator,withpilotsexpectedtobegininearly2024.Thiswillempowermoreconsumerstodecarbonisetheirhomes.•WewilldeliverPhase2oftheHomeUpgradeGrantfromApril2023,havingallocatedupto£630milliontoLocalAuthoritiestoupgradearound25,000homes,withannualbillsavingsof£220perhousehold.•WewilldeliverWave2oftheSocialHousingDecarbonisationFundfromApril2023,aspartofourcommitmenttodecarbonisingthesocialhousingsectorby2030.Thiswillallocateupto£778millionofgrantfunding,witharound£1.1billionoffurtherco-funding,tohousingassociationsandlocalauthorities,andsavesocialhousingtenantsanaverageof£220ontheirenergybills.•Followingthe2020SocialHousingWhitePaper,the2021HeatandBuildingsStrategycommittedGovernmenttoconsidersettinganewregulatorystandardofEPCBandCforthesocialrentedsector.•Wehavecommittedtobegintheconsultationprocessonaminimumenergyefficiencystandardforthesocialrentalsector,withinsixmonthsoftheSocialHousingRegulationBillreceivingRoyalAssent.•Wewillpublishasummaryofresponsestotheconsultationonimprovingtheenergyperformanceofprivatelyrentedhomesandrespondtotheconsultationonimprovinghomeenergyperformancethroughlenders.•Weareplanningtoconsultbytheendofthisyearonhowtoimprovetheenergyefficiencyofowner-occupiedhomes.PoweringUpBritain–EnergySecurityPlan24•Wewillcontinuetosupportthedecarbonisationofthepublicsector,with£1.425bningrantfundingforlow-carbonheatandenergyefficiencyretrofitsmadeavailableovertheperiod2022/23-2024/25.•WewilldeveloptheGovernment’sadviceandinformationservice,helpingdomesticconsumersinchoosingwhichdecarbonisationmeasuressuitthembest.Thisincludesanenhancedgovernmentwebsitewithtailoredadviceandoptionsonspend-to-saveenergyefficiencyimprovementsfortheirhomes,adedicatednationalphoneline,andlocaladvicedemonstratorprojects.Energyefficiencyproducts•Wewillraiseminimumenergyperformancestandardsandstrengthenenergylabellingrequirementsforenergy-usingproducts,tohelpreducetheirenergydemand.Thiswillstartwithaconsultationonlighting,openuntil2023,followedbyothertechnologiesoverthenextyear.Marketreform•Followinganearlierconsultation,wewillinvestigatehowfutureelectricitymarketarrangementsunderconsiderationintheReviewofEnergyMarketArrangementsprogrammecanincentivisethedeploymentofenergyefficiencymeasuresanddeliverpermanentreductionsinelectricitydemand.Phasingoutfossilfuelheatingforcleanalternatives•TheGovernmenthasanambitiontophaseoutallnewandreplacementnaturalgasboilersby2035atthelatest,andwillfurtherconsidertheNetZeroReview’srecommendationinrelationtothis.•Wehaveconsultedonphasingoutnewandreplacementfossilfuelheatingsystemsforoffgasgridproperties,andwillrespondtotheseconsultations.•Weareannouncingthelaunchofthe£30millionHeatPumpInvestmentAcceleratorcompetition,toincentivisetheUKmanufactureofheatpumpstoimprovesupplyoflow-carbonheat.•Wewillsupporttrainingforheatpumpandheatnetworkinstallersthroughthe£5millionHeatTrainingGrantlaunchedearlierthismonth.•TofurtherencouragetheadoptionofcleanheattechnologieswecanconfirmthattheBoilerUpgradeSchemewillbeextendedto2028.TheGovernmentiscommittedtoincreasingheatpumpdeploymentundertheSchemeandwillextendandenhancethecurrentmarketingcampaigntoincreaseconsumerawarenessandtake-up.•WeareimplementingtheCleanHeatMarketMechanismin2024,amarket-basedincentiveformanufacturerstoincreaseinstallationoflow-carbonheatingsystemsrelativetothesaleoffossilfuelboilers.PoweringUpBritain–EnergySecurityPlan25•Weexpecttoannouncethelocationofthehydrogenheatingvillagetriallaterin2023andtheneighbourhoodtrialwillgolivein2024,inordertohelpbuildourevidencebaseformakingstrategicdecisionsonhydrogenforheatingby2026.•Heatnetworkswillplayanimportantroleforaffordable,low-carbonheatinginanyscenario.WearecontinuingtogrowanddecarbonisetheUKheatnetworkmarketthroughtheGreenHeatNetworkFundandtheHeatNetworkEfficiencyScheme.Wecannowconfirmthatcapitalsupportwillbeextendedto2028tofacilitatethecontinuedgrowthoflow-carbonheatnetworks,including£220millionfortheHeatNetworkTransformationProgrammeover2025/6and2026/7.•Weexpecttointroducearegulatoryframeworkforheatnetworksandbegintheimplementationofheatnetworkzoningby2025.Improvingenergyefficiencyacrossallbusinessandindustrialprocesses•WewillworkwiththenewEnergyEfficiencyTaskforcetodrivegreaterprivatesectoractiononresourceandenergyefficiency.TheTaskforce,co-chairedbyNatWestCEOAlisonRoseandLordCallanan,waslaunchedinFebruary2023andwillshortlybeginworkondevelopinganactionplanwhichwillbepublishedinthesummer.•WeareannouncinganextensiontotheIndustrialEnergyTransformationFund(IETF),increasingtotalgrantfundingavailableto£500million.Subjecttobusinesscaseapproval,weintendtoopenPhase3oftheIETFfornewapplicationsinearly2024,supportingindustrytocuttheirenergybillsandcarbonemissionsthroughinvestinginenergyefficiencyandlow-carbontechnologies.•AsannouncedattheBudget,weareextendingtheClimateChangeAgreementsSchemebytwoyears,whichprovidesreducedClimateChangeLevyratesforeligiblebusinessesinover50industrialsectorsworthanestimated£300millionayear.WearealsopublishingaconsultationonthedetailoftheextensionandviewsonapotentialfutureClimateChangeAgreementsScheme.•Weplantolaunchadigitalenergyadviceserviceforsmallbusinessesthisyeartogiveimpartial,trustedadviceonimprovingnon-domesticenergyefficiency,reducingtheirenergyuseandbills.Wewillalsobepilotinganewauditandgrantschemethisyearenablingsmallbusinessestomovefrominsighttoimplementationofenergyefficiencymeasures.•TheGovernmenthasconsultedonproposalsfortheprivaterentedsectorandwillpublishtheGovernmentresponseinduecourse.Wewillalsoconsiderhowwecanfurthersupportgreaterenergyefficiencyinowner-occupiedcommercialbuildings.PoweringUpBritain–EnergySecurityPlan264.AfutureofCheap,CleanandBritishEnergyPoweringUpBritain–EnergySecurityPlan27AfutureofCheap,CleanandBritishEnergyStrengtheningBritain’senergysecuritymeansmovingfromfossilfuelstohome-grown,cleanenergytoeliminateemissionsandtackleclimatechange.Secure,low-costandcleanelectricityiscentraltothis.In2050,itwillbethepredominantformoffinalenergyconsumptionandakeymeansofdecarbonisingothersectors.Bythemiddleofthenextdecade,demandmaygrowbyupto60%asweelectrifytransportandheat.TheGovernmenthascommittedtoachievingfullydecarbonisedelectricityby2035,subjecttosecurityofsupply.Wearetakingtheactionsthatwillsetusoncourseforthis.Aswemakethetransitiontoasecureandlow-carbonelectricitysystem,affordabilitywillremainatthecentreofourthinking.Thisiswhywehavesetanewambition.By2035,ourgoalisforBritaintohaveamongthecheapestwholesaleelectricitypricesinEurope.PoweringUpBritain–EnergySecurityPlan28OurstrategyfordeliveringthisissetoutintheEnergyWhitePaper,NetZeroStrategy,BritishEnergySecurityStrategyandthisplan.Thesesetouttheneedtobuildoutarangeoflow-carbongeneration,flexibletechnologiesandnetworksatpacewhilstalsodevelopingnewoptions,andsetouttheactionswearetakingtodeliverthis.TheyalsosetoutthecriticalrolethatunabatedgasgenerationcurrentlyplaysinkeepingtheUKelectricitysystemsecureandstable,notingthatitwillbeusedlessfrequentlyinthefutureaswedevelopanddeploythelow-carbonalternativesthatcanfullyreplicateitsrolewithintheelectricitysystem,runningonlywhenthesystemmostneedsitforsecurityofsupply.Low-costrenewableswillbecentraltoourgoal.KeytothepaceoftherolloutofrenewablestechnologieshasbeenthemovetoannualContractforDifference(CfD)auctionsbuildingonthelargesteverallocationroundin2022,whichsecuredalmost11gigawattsofadditionalcapacity.Nucleargenerationisavitalcomponentofourfutureelectricitysystem.WesignedthecontractforthefirstnuclearpowerstationinagenerationatHinkleyPointC,havemadeaground-breakinginvestmentof£700millioninSizewellCinpartnershipwithEDF,andhaveestablishedGreatBritishNucleartodeliveranuclearprogramme.ItisessentialthatwebringforwardpowerCarbonCapture,UsageandStorage(CCUS)andotherflexibletechnologies,whichcaneitherincreasesupplyorreducedemandatshortnoticetocloseanygapbetweenconsumerdemandandwhatisbeinggeneratedbyrenewablesandnucleartechnologies.Wearedevelopingthetechnologyoptionsfordeliveringflexibilityonboththesupplyside,throughpowerCCUS,hydrogentopowerandstorage,andthedemandside,throughelectricvehiclechargingorsmartappliances(demandsideresponse).Inaggregate,flexibilitycouldsaveupto£10billionperyearby2050,byreducingtheamountofgenerationandnetworkneededtodecarboniseelectricity.Weproposetobringforwardflexibilitythroughmarketreform,andbespokesupportwherenecessarytoensureefficientoperationalandinvestmentsignalsareinplaceforalltypesoflow-carbonflexibility,aswellensuringitcanattracttherequiredinvestmenttodeploywhentechnologiesareatdifferentstagesofmaturity.Thebenefitsaren’tlimitedtotheelectricitysystemeither.Rollingoutsmartandflexibletechnologiescouldcreate24,000jobsacrossthecountry–anotherexampleofhowtheenergytransitionwillsupporteconomicgrowthandpromotetheGovernment’slevellingupambitions.Inaddition,weareworkingwiththeElectricitySystemOperatortoreimaginethedesignandconstructionofthenetworkswhichconnectgenerationtodemand,integratingoffshorePoweringUpBritain–EnergySecurityPlan29windwithmainlandnetworks.Andwearereforminggovernanceandoperatingrulesoftheelectricitymarket,allessentialenablersofanefficient,low-costsystem.Whilstelectricityiscentraltoourdecarbonisationstrategyotherlow-carbontechnologiesalsohaveakeyroletoplay.TheGovernmentseeslow-carbonhydrogenasacriticalcomponentofourbroaderstrategytodeliverenergysecurity,createeconomicgrowthandcontributetoournetzerotarget.Wesetoutourplanstodeliverathrivinglow-carbonhydrogensectorintheUKHydrogenStrategyin2021.ThiswasfollowedbytheBritishEnergySecurityStrategylastyearinwhichwesetoutourambitiontohaveupto10gigawattsoflow-carbonhydrogenproductioncapacityintheUKby2030,subjecttoaffordabilityandvalueformoney,withatleasthalffromelectrolytichydrogen.CCUSisanemergingsectorthatisacentralpillarofGovernment’splantodelivernetzero.Itisthekeytounlockingdecarbonisationofindustrialsectors,deliveringengineeredgreenhousegasremovals,andenablinglow-carbonhydrogenproductionandflexiblelow-carbonelectricitygenerationtocomplementrenewables.CCUSformspartofthemostcost-effectiveroutetonetzero,andrepresentsasignificanteconomicopportunity,withthepotentialtosupportupto50,000jobsinourindustrialheartlandsandacrossthesupplychain,anddeliver£4-5billioninGrossValueAddedby2050throughexports.Wearebuildingonskillsandexperiencegainedviaourwell-developedoffshoreindustryandoursignificantstoragepotential.Innovationwillbeneededtoacceleratedevelopmentofthisrangeofnewlow-carbontechnologiestosupporttheirdeploymentatscaleoverthecomingdecades.ThisincludessupportingaUKadvancednuclearindustrybydemonstratingAdvancedModularandSmallModularReactors,aimingtounlockthepotentialoffloatingoffshorewind,anddevelopinginnovationsolutionsforelectricitysystemflexibilityaswellaslongerdurationenergystorage.TheGovernmentisalsosupportingthedevelopmentoflow-carbonhydrogenproductionandnext-generationCCUS,aimingtoreducecostsandbringnewsolutionstomarket.ResearchanddevelopmentinfusionwillcapitaliseonUKexpertiseandprovidepotentiallonger-termenergyoptions.Centraltodeliveringthisinfrastructureisanefficientplanningsystem.Itcantakemanyyearstogetamajorprojectthroughtheplanningsystem,andasvolumeandcomplexityincreases,sothesystemisincreasinglyfacingdelaysandchallenges.TheGovernmentiscommittedtoensuringthatthetownandcountryplanning,ElectricityActplanning,andNationallySignificantInfrastructureProject(NSIP)regimesaremoreeffectiveinsupportingourenergysecurityandnetzerogoals.Aspartofthis,lastmonthGovernmentpublisheditsActionPlanforreformingtheNationallySignificantInfrastructureProgrammetomakethesystemfaster,greener,fairerandmoreresilient.NationalPolicyStatements(NPS)arethecornerstoneofthesystem.Theysetoutthenationalneedforinfrastructureandgiveguidanceonplanningconsiderationsforindividualprojects.AlongsidethisPlan,theGovernmentispublishingfiverevisedenergyNPSsPoweringUpBritain–EnergySecurityPlan30coveringRenewables,OilandGasPipelines,ElectricityNetworks,GasGeneration,andanoverarchingEnergyStatementforconsultation.Thesereflecttheimportanceofenergysecurityandnetzerowithclear,strongstatementsofnationalneedfornewenergyinfrastructurewhichcanhelpexpediteplanning.ThereviseddraftRenewablesNPSintroducestheconceptof“criticalnationalpriority”foroffshorewindandsupportingtransmissioninfrastructure,andthereviseddraftelectricityNetworksNPSisstrengthenedbyreferencetostrategicnetworkplansthatensureourconnectinginfrastructureisdevelopedinajoined-upwaytoreduceimpacts.TheGovernmentisalsodevelopinganewnuclearNPS,whichwillcoverthesitingandpolicyframeworkfornuclearelectricitygeneratinginfrastructurebeyond2025.Asafirststep,wewillconsultontheproposedapproachtositingnewnuclearprojectslaterthisyearandaimtodesignatethenewNPSfollowingconsultationandParliamentaryscrutinybyearly2025.Aswithalllarge-scaleinfrastructure,energyprojectscanhaveasignificantimpactonoursurroundings,butalsobringopportunitiesandinvestmentthatcanconserveandenhancetheenvironment.InlinewithBiodiversityNetGainandthebiodiversityduty,publicauthoritiesshouldensurethatenergyinfrastructureandassociateddecisionsshoulddeliveropportunitiestoconserveandenhancebiodiversity.Giventhescaleandspeedoflow-carboninfrastructuredevelopmentneeded,weexpectthatmoreplanningreformwillberequired.Wearelookingcloselyatwhatothercountrieshavedonetospeedupinfrastructuredeployment,includingrecentdevelopmentsinEurope.Thisisaglobalchallenge,wheremanagingthebalancebetweenlocalandenvironmentalprotection,securingenergysuppliesinanunstableworld,andurgentlytacklingclimatechangeareanissueforgovernmentsacrosstheworld.Wealsoneedtheworkforcetodeliveronourtargetsandsecuretheeconomicopportunityitpresents.In2024,theGreenJobsDeliveryGroup,willpublishaNetZeroandNatureWorkforceActionPlan.Thisplanwilloutlinetheheadlineactionsandsolutionsthatthegroupisprogressingtodeliverthenetzeroworkforceneeded.WearestartingwithasetofheadstartactionsfromtheNetZeroPowerandNetworkspilotworkinggroupnow,followedbyasuiteofcomprehensiveactionsforthissectorbysummer2023,whichcanbeusedasatemplatefortheothersectoralassessments.PoweringUpBritain–EnergySecurityPlan31NuclearOurKeyCommitments•WewilldeliveraprogrammeofnewnuclearprojectsbeyondHinkleyPointCandSizewellC.•WewillsetupGreatBritishNuclear,withtheresponsibilitytoleaddeliveryofthenewnuclearprogramme,backedwiththefundingitneeds.•WewilllaunchacompetitiveprocesstoselectthebestSmallModularReactortechnologies,withthefirstphasecommencinginApril2023.•WewillsupportthedevelopmentofAdvancedModularReactorsthroughtheAdvancedNuclearFundtosupportademonstrationbytheearly2030s.TheGovernmentiscommittedtoensuringthattheUKisoneofthebestplacesintheworldtoinvestincivilnuclearpowerandistakingthestepstorevitalisetheUK’snuclearindustry.TheBritishEnergySecurityStrategysetoutourambitionfordeployingupto24gigawattsby2050,around25%ofourprojected2050electricitydemand.RidingthemomentumoftheGovernment’slandmarkdealsforHinkleyPointCanditsinvestmentinSizewellC,wearenowbuildingapipelineofadditionalprojectstocreatecertaintyforthesector.TheprojectpipelinewillcompriseamixtureoftechnologiesincludingSmallModularReactors(SMRs),AdvancedModularReactors(AMRs)andgigawatt-scalereactors.OurcommitmenttoanuclearprogrammeandtoGreatBritishNuclear(GBN)willenabletheUKtobeonapathtoachieveitsambitiontobecomeagloballeaderincivilnuclearpowerandSMRs,whichcouldincludethecreationofhigh-valuejobsandthedevelopmentofourcapabilities.Wewilldeliverthisby:•MovingtheSizewellCprojecttothepointoffinalinvestmentdecisioninthisParliament,•Establishingapipelineofnewnuclearprojects,•Supportingthedevelopmentofnewnucleartechnologies,•StrengtheningBritain’snuclearsupplychain.ForwardlookProgressingSizewellC•WorkingwithEDF,theGovernmentwilltakethenecessarystepstohelpsecureourenergyfuturebyprogressingtheSizewellCprojecttothepointofafinalinvestmentdecisioninthisParliament,subjecttovalueformoneyandallrelevantapprovals.PoweringUpBritain–EnergySecurityPlan32Establishingapipelineofnewnuclearprojects•TheGovernmentiscommittingtoaprogrammeofnewnuclearprojectsbeyondSizewellC,givingindustryandinvestorstheconfidencetheyneedtodeliverprojectsatspeed,reducingcoststhroughlearningandreplication.Todeliverthis,wehavelaunchedGreatBritishNuclear(GBN),whichwillbeanarms-lengthbodyresponsiblefordrivingdeliveryofnewnuclearprojects,backedwiththefundingitneeds.GBNwilloperatethroughBritishNuclearFuelsLimited.•TheorganisationwillbeinitiallyledbyaninterimChairandCEOandwewillbelaunchingtherecruitmentforapermanentChairandCEOshortly.Inparallel,GBNwillalsobeginrecruitingafullystaffedteam.GBNwillbelocatedinoraroundtheGreaterManchesterarea.•WeareworkingtowardsbringingforwardlegislationsettingoutastatutoryroleforGBNwhenparliamentarytimeallows.Inthemeantime,workwillcontinueatpacetoachieveourambitionwithintheexistinglegalframeworktosupportdeliveryoftheGovernment’sambitions.•ThefirstpriorityforGBNistolaunchacompetitiveprocesstoselectthebestSMRtechnologies.ThiswillcommenceinAprilwithmarketengagementasthefirstphase.Thesecondphase–thedownselectionprocess–willbelaunchedinthesummer,withanambitiontoassessanddecideontheleadingtechnologiesbyautumn.•TheGovernmentwillprovideco-fundingthatwillbedeployedbyGBNtosupportthedevelopmentoftheseselectedtechnologies,andwillworkwithsuccessfulbiddersonensuringtherightfinancingisinplace,inlinewithitscommitmenttotaketwoFinalInvestmentDecisionsnextparliament.ThetotallevelofdevelopmentfundingwillbesubjecttofutureSpendingReviews.•Inaddition,GBNwillworkwithwiderGovernmentonaccesstopotentialsitesfornewnuclearprojectstoachieveourlong-termambition.GBNwillalsosupporttheGovernment’sconsiderationoffurtherlargegigawatt-scaleprojectstohelpusdeliveronournetzeroambitions.•WelaunchedtheFutureNuclearEnablingFundofupto£120milliontoprovidetargetedsupportfornewnucleartoaddressbarrierstoentryandwillannounceashortlistofapplicationstobeginpre-grantawarddue-diligence.•TheGovernmenthasacceptedthemainrecommendationoftheIndependentReviewofNetZeroandwillbeproducingaroadmaplaterin2023,followingtheestablishmentofGBNandthelaunchofthecompetitivetechnologyselectionprocess.•WewillworkcloselywiththeNuclearSkillsStrategyGrouptodelivertheNuclearSkillsStrategicPlantoprovidethefuturerolesandjobthesectorneeds.Supportingthedevelopmentofnewnucleartechnologies•WearealsosupportingthedevelopmentofAdvancedModularReactorsthroughtheAdvancedNuclearFundtosupportanAMRdemonstrationbytheearly2030s.PoweringUpBritain–EnergySecurityPlan33•DeliveryofPhaseAoftheAdvancedModularReactorResearch,DevelopmentandDemonstrationprogramme,whichprovidedupto£2.5millionacrosssixprojectsin2022-23,isconcludingandweareanalysingtheoutputs.•WehavealsolaunchedPhaseBoftheAMRRD&Dprogramme,whichwasannouncedinDecember2022(torun2023-25)andwillprovideupto£55millionacrossuptotwoprojectsandupto£5milliontosupporttheUK’sregulators.Successfulbidswillcommenceworkinearlysummer2023.Strengtheningournuclearsupplychain•TheNuclearFuelFundopenedforapplicationsinJanuary2023,withgrantawardsplannedforlaterin2023followingassessmentoftheproposalsputforwardforfunding.•Wearealsodevelopingtheprogramme,undertheAdvancedNuclearFund,forthefurtherdevelopmentofCoatedParticleFuel,whichareneededtopowerfuturereactors.•ThedevelopmentofthenuclearroadmapwillsupportfurtheractiontoensurearesilientsupplychainandidentifyopportunitiestodevelopUKcapabilities.PoweringUpBritain–EnergySecurityPlan34RenewablesOurKeyCommitments•WearelaunchingtheFloatingOffshoreWindManufacturingInvestmentScheme,toprovideupto£160milliontokickstartinvestmentinportinfrastructureprojects.•Wewillestablishasolargovernment-industrytaskforceandwewillpublishasolarroadmapsettingoutaclearstepbystepdeploymenttrajectorytoachieve70GWofsolarby2035.•WehavecommittedtoannualContractsforDifferenceauctionstohelpdrivetherapiddeploymentofrenewableelectricity.Low-costrenewablegenerationwillbethefoundationoftheelectricitysystemandwillplayakeyroleindeliveringamongstthecheapestwholesaleelectricityinEurope.TheUKisalreadyattheforefrontofmanyrenewabletechnologies,withrenewablescurrentlyaccountingforover50gigawattsoftheUK’selectricitycapacity,andwearetakingforwardarangeofactionstofurtheracceleratedeployment,includingmanyoftherelevantrecommendationsfromtheIndependentReviewofNetZero.Improvednetworksandgridconnectionsarefundamentaltorapidrenewablesdeployment.ThedetailsoftheGovernment’sambitionsforamodernisedgridcanbefoundinthesectiononPowerNetworks,InterconnectionandSystemGovernance.Cross-cuttingdevelopmentsForwardlookInvestment•TheGovernmentlaunchedtheContractsforDifference(CfD)AllocationRound5inMarch2023,whichisthefirstroundtorunonanannualbasis.Thismovetoannualauctionswillhelpdrivetherapiddeploymentofrenewableelectricityandimproveinvestorcertainty.TheGovernmenthassetaninitialbudgetof£205million,withtheabilitytoincreasethisbudgetoncewehavegreatercertaintyabouttheparticipatingpipeline,atvaluationstageinthesummer.Thisroundwillhaveatwo-potstructure,tomaintainsupportforbothestablishedandemergingtechnologies,includingoffshorewind,onshorewind,solar,tidal,geothermalandfloatingoffshorewind.•WeareconsideringwhetheritmightbeappropriatetointroducereformstotheCfDschemetoensureitremainsadaptableandhelpsaddressemergingbarrierstorenewableenergydeployment–notablyaroundsupplychainbottlenecksandcapacity.InApril2023,theGovernmentwilllaunchacallforevidenceonnonpricefactors.Suchfactorscouldfocusonsystemintegrationandsupplychaindevelopment.•TheGovernmentwillconsiderhowtoensureinvestmentinrepoweredassetsisappropriatelyvaluedinthemarket,toensurelocationswithgoodenergyresourcecontinuetocontributetoelectricitysecurity.ThiswillincludeconsideringthepotentialoftheCfDtosupportrepoweredprojectsaspartofaCfDconsultationresponsebyspring2023.PoweringUpBritain–EnergySecurityPlan35•AswesetoutintheBritishEnergySecurityStrategy,weareactivelyexploringthepotentialforinternationalprojectstoprovideclean,affordableandsecurepower.Forexample,theGovernmentisinterestedintheXlinksproject,aproposedlargescaleonshorewind,solarandbatteryelectricitygenerationsiteinMoroccothatwouldexclusivelysupplypowertotheGBgridviahighvoltagedirectcurrentsubseacables.TheGovernmentisconsidering–withoutcommitment–theviabilityandmeritsoftheproposaltounderstandifitcouldcontributetotheUK’senergysecurity.PlanningReform•TheGovernmentistakingimportantstepstocutthetimetakentobuildrenewableelectricityplants,includingbycreatingamoreconduciveplanningenvironment.Weareworkingtoacceleratetheplanningconsentprocessesbydesigningafast-trackconsentingtimeframe,whichwillbeavailableforcertainNationallySignificantInfrastructureProjectsthatmeetdefinedqualitystandards,reducingthemaximumformalexaminationperiodtotwelvemonths.TheLevelling-upandRegenerationBillalsoincludesthepowerfortheSecretaryofStatetoshortenthemaximumexaminationtimeframe.Wewillconsultonourproposalsforfast-trackconsenting,includingproposedqualitystandardsinspring2023.Skills,infrastructure,andsupplychain•InlinewiththerecommendationsonskillsfromtheIndependentReviewofNetZero,therenewablesindustryisworkingwithintheGreenJobsDeliveryGrouptodeveloptheNetZeroSkillsandWorkforceActionPlantobepublishedin2024,whichwilladdressemergingworkforcechallenges,includingforsolarandonshorewind.SolarEnergyUKisalsoworkingwithtrainingpartnersandlocalbodiessuchasMayorofLondon’sOfficetoprovidegrants,learningtools,andtrainingandplacementprogramme.•InlinewiththerecommendationsfromtheIndependentReviewofNetZero,weareexploringpolicyoptionsforincreasingthedeploymentofon-siteelectricitygenerationatmanufacturingfacilities,toencouragemanufacturerstoproducetheirownenergy.Thiswillhelpdecarbonisebusinessandreducedependenceonimportedenergy.•TheGovernmenthaslaunchedaTask&FinishGroupforCriticalMineralResilienceinUKIndustry.Consistingofindependentindustryexperts,theGroup’sremitistoinvestigatethecriticalmineraldependenciesandvulnerabilities,includingwithinthemanufactureofcleanenergytechnology.TheGroupwillproduceareportattheendof2023.OffshoreWindTheBritishEnergySecurityStrategyincreasedtheUK’sambitionforoffshorewindtoupto50gigawattsby2030,withupto5gigawattsfromfloatingwindandsetoutproposalstoacceleratedeploymentrapidly.TheUK’sOffshoreWindChampion,TimPick,andtheOffshoreWindAccelerationTaskforcehasbeensupportingtheGovernmenttoremovePoweringUpBritain–EnergySecurityPlan36barriersandacceleratedeployment.Inaddition,theGovernmentprovidedgrantstomanufacturingfacilitiesthroughtheOffshoreWindManufacturingInvestmentScheme–weexpectnewmanufacturingfacilities,suchasSeAHWind’smonopilefactoryandJDRCables’subseacablefacility,willbegintocompletetheirconstructionandoperationsbytheendof2024,boostingsupplychaincapacityfortheoffshorewindindustry.ForwardlookPlanningreform•Wewillputlegislationinplacetostreamlinetheoffshorewindconsentingprocess.•TheGovernment’sflagshipEnergyBillcontainsmeasurestointroducetheOffshoreWindEnvironmentalImprovementPackageannouncedintheBritishEnergySecurityStrategy,includingregulationstoadaptenvironmentalassessmentsforoffshorewind,enablestrategiccompensation,reviewthewayinwhichHabitatsRegulationAssessmentsarecarriedoutandintroduceMarineRecoveryFunds.•OffshorewindprojectsthatmeetthenecessaryqualitycriteriawillalsobeabletobenefitfromthenewFastTrackconsentingprocessbeingimplementedintheLevellingUpandRegenerationBill.TheEnergyBillandLevellingUpandRegenerationBillareexpectedtogainRoyalAssentduringthisParliamentarySession,withpilotsfortheFastTrackconsentingprocessbeginningfromlateautumn.Skills,infrastructure,andsupplychain•AlongsidethisPlanwearelaunchingtheFloatingOffshoreWindManufacturingInvestmentScheme.Theschemewillprovideupto£160milliontokick-startinvestmentinportinfrastructureprojectsneededtodeliverourfloatingoffshorewindambitions.Thiswillgiveinvestorstheconfidencetobackthisemergingsector,whichwillmakeavitalcontributiontotheUK’senergysecurityandnetzero.•TheGovernmentalsowelcomestheworkoftheoffshorewindindustrytoconsiderthestrategicfundingofkeysupplychain,innovationandskillspriorities.Workingalongsideindustry,theGovernmentwillremovebarrierstohelpmoderniseTheCrownEstate’sinvestmentcapabilitytohelpunlockinvestmentandgrowthinkeysectors,includingoffshorewind.•WeareworkingwiththeOffshoreWindIndustryCouncilandMinistryofDefencetoputinplacesuitablemitigationthatavoidsoffshorewindturbinescompromisingairdefenceandairtrafficradarsystems.Developerswillfundaprocurementcompetitiontoidentifyasolution,launchinginautumn2023.•AssetoutinthePowerNetworksInterconnectionandSystemGovernancesectionofthisPlan,inDecember2022wealsolaunchedtheOffshoreCoordinationSupportScheme,agrantschemewithupto£100millionavailableforoffshoreelectricityprojects.PoweringUpBritain–EnergySecurityPlan37OnshoreWindWithover14gigawattscurrentlydeployedintheUK,low-costonshorewindisanimportantpartoftheenergymix,accountingforaroundaquarterofinstalledrenewablecapacity.ContractsforDifferenceAllocationRound4securedalmost1.5gigawattsofonshorewindpower,including900megawattsofmainlandprojects.In2022,theGovernmentconfirmedthatitwouldcontinuetosupportonshorewindthroughannualContractsforDifferenceauctions.ForwardlookPlanningreform•Recognisingthatonshorewindisanefficient,cheapandwidelysupportedtechnology,GovernmenthasconsultedonchangestoplanningpolicyinEnglandforonshorewindtodeliveramorelocalistapproachthatprovideslocalauthoritiesmoreflexibilitytorespondtotheviewsoftheirlocalcommunities.Wealsoconsultedonproposedmeasurestosupporttherepoweringofonshorewind,inlinewithcommitmentsmadeintheBritishEnergySecurityStrategy.WewillrespondtotheNationalPlanningPolicyFrameworkconsultationbyspring2023.•TheGovernmentwillshortlylaunchanewconsultationtoseekviewsonhowtodeveloplocalpartnershipsforonshorewindinEngland,recognisingtheimportanceofgoodcommunityengagementandparticipationtodeliveringmoreonshorewindinasustainableway.SolarTheUKhashugedeploymentpotentialforsolarpower,andweareaimingfor70gigawattsofgroundandrooftopcapacitytogetherby2035.Thisamountstoafivefoldincreaseoncurrentinstalledcapacity.Weneedtomaximisedeploymentofbothtypesofsolartoachieveouroveralltarget.DeployingrooftopsolarremainsakeypriorityfortheGovernment,anditcontinuestobeoneofthemostpopularandeasilydeployedrenewableenergysources;overamillionhomesnowhavesolarpanelsinstalled.Solarcanbenefithouseholdsandbusinessesbyallowingthemtoreduceelectricitybillssignificantlyandreceivepaymentforexcesselectricitygenerated.Warehouses,distributioncentresandindustrialbuildingswithhighelectricitydemandcanoffersignificantpotentialforsolardeployment,whichcanrapidlypayforitselfbymeansofenergybillsavings.TheGovernmentislookingtofacilitateandpromoteextensivedeploymentofrooftopsolaronindustrialandcommercialpropertyinordertomakemaximumusageofavailablesurfacesforbusinessaswellasenvironmentalandclimatebenefits.Ground-mountedsolarisoneofthecheapestformsofelectricitygenerationandisreadilydeployableatscale.TheGovernmentseekslargescaleground-mountsolardeploymentPoweringUpBritain–EnergySecurityPlan38acrosstheUK,lookingfordevelopmentmainlyonbrownfield,industrialandlowandmediumgradeagriculturalland.Solarandfarmingcanbecomplementary,supportingeachotherfinancially,environmentallyandthroughshareduseofland.Weconsiderthatmeetingenergysecurityandclimatechangegoalsisurgentandofcriticalimportancetothecountry,andthatthesegoalscanbeachievedtogetherwithmaintainingfoodsecurityfortheUK.Weencouragedeploymentofsolartechnologythatdeliversenvironmentalbenefits,withconsiderationforongoingfoodproductionorenvironmentalimprovement.TheGovernmentwillthereforenotbemakingchangestocategoriesofagriculturallandinwaysthatmightconstrainsolardeployment.TheGovernmentconsidersthatthereisastrongneedforincreasedsolardeployment,asreflectedinthelatestdraftoftheEnergyNationalPolicyStatements.Werecognisethataswithanynewdevelopment,solarprojectsmayimpactoncommunitiesandtheenvironment.Theplanningsystemallowsallviewstobetakenintoaccountwhendecisionmakersbalancelocalimpactswithnationalneed.ForwardlookInvestment•Tomeetthedemandforrooftopsolar,theGovernmentisworkingtofacilitatelow-costfinancefromretaillendersforhomesandsmallbusinesspremises,aligningwithrecommendationsintheIndependentReviewofNetZero.•Toprovidecertaintytoinvestorsinthesolarindustry,inlinewiththeIndependentReviewofNetZerorecommendationtheGovernmentwillpublishasolarroadmapin2024,settingoutaclearstepbystepdeploymenttrajectorytoachievethefive-foldincrease(upto70gigawatts)ofsolarby2035.TheGovernmentwillalsoestablishagovernment/industrytaskforce,coveringbothgroundmountedandrooftopsolartodriveforwardtheactionsneededbyGovernmentandindustrytomakethisambitionareality.Planningreformandbuildingstandards•Toacceleratefurtherthedeploymentofrooftopsolar,theGovernmentiscurrentlyconsultingonchangestopermitteddevelopmentrights.Ourproposalsseektosimplifyplanningprocessesforlargercommercialrooftopinstallationsandintroduceanewpermitteddevelopmentrightforsolarcanopiesonnon-domesticcarparks,enablingmoresolarinstallationstobenefitfromtheflexibilitiesandplanningfreedomspermitteddevelopmentrightsoffer.•AspartofaconsultationontheFutureHomesandBuildingStandardstobepublishedlaterin2023,theGovernmentwillexplorehowitcancontinuetodriveonsiterenewableelectricitygeneration,suchasthroughrooftopsolarwhereappropriateinnewhomesandbuildings.TheGovernmentwillalsopublishpracticalguidancetosupporttheinstallationofrooftopsolaronitsownestateandthewiderpublicsectorestate.PoweringUpBritain–EnergySecurityPlan39BioenergyBioenergy,producedfrombiomass,isconsideredarenewable,low-carbonenergysource,becauseitsinherentenergycomesfromthesun,itremovescarbondioxidefromtheatmosphereasitgrows,anditcanbeusedtodirectlydisplaceoil,coalandnaturalgas.Whilstitalsohasusesinheatingandtransport,electricityfrombioenergyoffersbothbaseloadandseasonablydispatchablerenewableelectricitysupply.Whencombinedwithcarboncaptureandstorage(powerBECCS),itcandelivernegativeemissions,whichiskeytodeliveringnetzero.TheBiomasspolicystatement,publishedin2021,setouttheGovernment’sstrategicaimsforsustainablebiomassuseinsectorsacrosstheeconomyincludingelectricity.Itpresented,forthefirsttime,theGovernment’spositionthatbioenergywithcarboncaptureandstorage(BECCS)canplayaroleincontributingtonetzeroandpresentedthepotentialroutesforBECCSdeployment.Wearedrivingourbioenergyagendaforwardby:•PublishinganewBiomassStrategy,•IncentivisingdeploymentofpowerBECCSthroughdevelopmentofabespokebusinessmodel.ForwardlookBiomassStrategy•TheGovernmentwillpublishtheBiomassStrategybytheendofJune2023.TheBiomassStrategywillsetoutfurtherdetailsonhowbiomasscanbestcontributetowardsnetzeroacrosstheeconomy.•TheStrategywillreviewtheamountofsustainablebiomassavailabletotheUKandhowthisresourcecouldbebestutilisedacrosstheeconomytohelpachievetheGovernment’senergysecurityandnetzerogoals,consistentwithourwiderenvironmentalcommitments.•TheStrategywillalsoestablishtherolewhichBECCScanplayinreducingcarbonemissionsacrosstheeconomyandsetouthowthetechnologycouldbedeployed.IncentivisingdeploymentofpowerBECCSprojects•TheGovernmentispreparingforthedeploymentofpowerBECCSandmadesubstantialprogressin2022launchingabusinessmodelconsultationandprojectsubmissionprocess.•TwoprojectspassedthedeliverabilityassessmentforthepowerBECCSprojectsubmissionprocess,DraxPowerLtdandLynemouthPowerLtd.TheyhavenotbeenselectedforinitialdeploymentinTrack-1negotiation,butthedepartmentwillengagefurtherwiththeseprojectsfollowingtheassessmentoutcome.Track-1isnottheextentofourambition,andthedepartmentremainscommittedtoachieving5milliontonnesperannumofengineeredgreenhousegasremovalsby2030.FurtherdetailsofthewiderCCUSprogramme,includingthelaunchofTrack-2andplansforthePoweringUpBritain–EnergySecurityPlan40expansionofTrack-1clusters,havebeensetoutintheHydrogenandCCUSsectionofthisplan.•TheGovernmentwillimminentlypublisharesponsetoaconsultationonbusinessmodelsforpowerBECCS.TheconsultationsetouttheGovernment’sintentiontoaddresstheimmediatemarketandtechnologyrisksthroughcontract-basedbusinessmodels,subjecttoaffordabilityandvalue-for-money.FlexibilityOurKeyCommitments•TheprojectnegotiationlistforTrack-1CCUSprojectshasbeenannouncedandincludesNetZeroTeesidePowerwhichcouldbecometheUK’sfirstpowerCCUSproject.•Weintendtoconsultin2023ontheneedandpotentialdesignoptionsformarketinterventiontosupporthydrogentopower.•Wearecontinuingtodeliverthe2021SmartSystemsandFlexibilityPlan,andalongsidethisPlanhaspublishedthegovernmentresponseondeliveringasmartandsecureelectricitysystem.Meetingour2035commitmentforadecarbonisedpowersystem,subjecttosecurityofsupply,willmeantransitioningawayfromunabatedgasgeneration,wherepossible.Whilstunabatedgasgenerationcurrentlyprovidesmuchofourflexiblecapacityatpresent,ensuringthepowersystemisstableandsecure,itsrolewillreduceaslow-carbonalternativesmature.TheGovernmentissupportingthistransitionbydevelopingenablersforexistinghighcarbonflexiblecapacitytohavecleardecarbonisationpathwaysandfacilitatingthedeploymentoflow-carbonflexibilitytechnologiesandservices.Theseactionswillneedtohappenatpaceandbedrivenforallformsoflow-carbonflexibility,fromlargerflexiblegenerationplants,tounlockingthevalueofdemandsideflexibilityfromhouseholdsandbusinesses.TheGovernmentwillenabletheaccelerationoflow-carbonflexibletechnologiesandservicesdeploymentthrough:•DrivingthedeploymentofpowerCarbonCaptureUsageandStorage(CCUS)inthe2020sandbeyond•Consultingontheneedandpotentialdesignoptionsforhydrogen-firedelectricitygeneration“hydrogentopower”marketintervention•Facilitatingthedeploymentofelectricitystorage•Developingenablersforcleardecarbonisationpathwaysforunabatedgeneration•Unlockingdemandsideflexibilityanddigitalisationatscale•UpdatingandreformingelectricitymarketarrangementsandgovernancetosupportflexibilityPoweringUpBritain–EnergySecurityPlan41ForwardlookDrivingthedeploymentofpowerCCUSinthe2020sandbeyond•TheGovernmentisontracktodeliverthefirstpowerCCUSproject,astheprojectnegotiationslistforTrack-1CCUSprojectshasbeenannouncedandincludesNetZeroTeessidePowerwhichcouldbecometheUK’sfirstpowerCCUSproject,subjecttotheprojectandtheclustersuccessfullydemonstratingaffordabilityandvalueformoneyintheupcomingnegotiations.FurtherdetailsofthewiderCCUSprogramme,includingthelaunchofTrack-2andplansfortheexpansionofTrack-1clusters,havebeensetoutintheHydrogenandCCUSsectionofthisplan.•TosupportthedeploymentofpowerCCUSprojects,theGovernmenthasdesignedtheDispatchablePowerAgreement-abespokemodeldedicatedtoensuringpowerCCUScanrunaheadofunabatedgasandprovidenon-weatherdependentgenerationtocomplementvariablerenewables.•TheGovernmentwillissuearesponsetothecallforevidenceonthefuturepolicyframeworkforpowerCCUSinspring2023.Consultingontheneedandpotentialdesignoptionsforhydrogen-firedelectricitygeneration“hydrogentopower”marketintervention•TheGovernmentbelieveshydrogentopowercanprovidereliablelow-carbonflexiblegenerationwhilecreatingadecarbonisationpathwayforunabatedgeneration;supportingourdecarbonisationambitionswhilemaintainingsecurityofsupply.Governmentanalysisshowsthathavinghydrogenavailableinthepowersectorcouldachieveloweremissionsatalowercostthanscenarioswithouthydrogen.Wearecommittedtoensuringthatmarketframeworkscansupportthedevelopmentofnewhydrogentopowerprojects.TheGovernment,therefore,intendstoconsultin2023ontheneedandpotentialdesignoptionsformarketinterventiontosupporthydrogentopower.•Hydrogentopowerdeploymentfacesinvestmentuncertaintyfrombeingafirstofakindtechnologyandtheuncertaintiesofenablingtransportandstorageinfrastructuredeployment.Anyinterventionoptionswouldlooktoaddresstheseuncertaintiesandbebasedontheneedformarket-basedsolutionstosupportinvestmentinlow-carbonflexibletechnologiesasoutlinedinourReviewofElectricityMarketArrangements(REMA)consultation.Theywouldconsiderexistinggovernmentsubsidiesandsupportinthehydrogenvaluechain,andanyfuturepolicyencouraginginvestmentinlargescalelongdurationelectricitystorage.TheGovernmentwillalsocontinuetoidentifyanddevelopappropriatepolicytotacklenon-financialbarrierstothedeploymentofhydrogentopower.PoweringUpBritain–EnergySecurityPlan42Developingenablersforcleardecarbonisationpathwaysforunabatedgasgeneration•TheGovernmentisenablingclearpathwaysforthedecarbonisationofhighcarbonflexiblecapacity.InMarch2023,wepublishedtheDecarbonisationReadinessconsultationwhichoutlinesproposalsforrequiringnewbuildandsubstantiallyrefurbishingcombustionpowerplantstodemonstratehowtheirplantcoulddecarbonisebyeitherconvertingto100%hydrogenfuelorbyinstallingCCUStechnologywithintheplant’slifetime.TheGovernmentwillissuearesponsethissummer.•Alongsidethis,theJanuary2023CapacityMarket(CM)consultationsoughtviewsonwaysthatunabatedgascapacitymaybeabletoleavetheirlong-termCMagreementearlytodecarbonise,subjecttocertainsecurityofsupplyconditionsbeingmet.TheGovernmenthasalsoproposedstrengtheningtheCMemissionslimitsfornewbuildandrefurbishingplantfrom1October2034.Proposalsalsocoveroptionsforremovingbarriersforlow-carbontechnologytoparticipateintheCM.FacilitatingthedeploymentofElectricityStorage•TheGovernmentisfacilitatingthedeploymentofelectricitystorageatallscalesthroughthejointGovernmentandOfgemSmartSystemsandFlexibilityPlan.Ourapproachcentresoncreatingabest-in-classregulatoryframeworkbyremovingregulatoryandpolicybarrierstotheimplementationofstorage,ensuringthatmarketsreflectthevalueofflexibilitytothesystemandinvestingininnovation.Thiswillensurestoragecanenterthemarketandcompetefairlyalongsideotherneworestablishedenergysolutions.•TheUKInfrastructureBank(UKIB)hasannounced,thatfollowinganexpressionsofinterestprocess,itwillappointmanagersforequityfundscoveringbothshortandlongdurationelectricitystorage.UKIBwillinvestonamatchedbasis,crowding-inwidersourcesoffinance.Goingforward,UKIBexpecttomakedirectinvestmentsintheelectricitystoragesector,whichwasidentifiedasaninvestmentopportunityintheirStrategicPlan.•TheGovernmentwillputinplaceanappropriatepolicyframeworkby2024toenableinvestmentinlargescalelongdurationelectricitystorage(LLES),withthegoalofdeployingsufficientstoragecapacitytobalancetheoverallsystem.•TheGovernmentisworkingwiththeindustry-ledStorageHealthandSafetyGovernanceGrouptoensureanappropriate,robustandfuture-proofedhealthandsafetyframeworkissustainedaselectricitystoragedeploymentincreases.In2023,wewillpublishaproductandinstallationstandard(knownasaPubliclyAvailableStandard)fordomestic/small-scalebatterystorageaswellasguidanceforgrid-scalestorage.•TheGovernmentwillannouncefurtherrecipientsoffundinginearly2023underthesecondphaseoftheLongerDurationEnergyStorageprogrammewhichaimstoacceleratethecommercialisationofinnovativelongerdurationenergystorageprojects.Thishasalreadyawarded£33milliontosuccessfulprojectstosupportabuildanddemonstrationphase.PoweringUpBritain–EnergySecurityPlan43Unlockingdemandsideflexibilityanddigitisationatscale•TheGovernmentisworkinginpartnershipwithindustrytoempowerconsumersofallsizesandtypestoengageinflexibility–thiswillreducesystemscostsforall.•AsattheendofDecember2022,55percentofallmetersinhomesandsmallbusinessesinBritainweresmartoradvanced.TheGovernmentwillcontinuetorolloutsmartmetersandconfirmthefixedminimumannualinstallationrequirementsforenergysuppliersfortheremainderofthesmartmeterpolicyframeworkin2023.•TheGovernmentwillimplementtheactionssetoutintheElectricVehicleSmartChargingActionPlan,publishedinJanuary2023.Thesecommitmentsstretchingoutto2026willmaximisethebenefitswhichelectricvehiclesofferforenergyflexibility,andtomakesurethesystemisreadytorespondintimefortheupturninenergydemand.•AlongsidethisPlan,TheGovernmenthaspublishedaresponsetotheconsultationDeliveringasmartandsecureenergysystemtotakeforwardamulti-yearprogrammethat:developsacompetitiveandwell-regulatedmarketforenergysmartapplianceswithpowersbeingsoughtintheEnergyBill;positionstheUKasaleaderinsupportingastrongmarketindemandsideresponseservices;and,inturnwillallowforelectricitydemandtobeshiftedtoreduceelectricitysystemcostsandtobenefitconsumersintermsoftheirenergycostsandchoices.•TheGovernmentwilldelivertheFlexibilityInnovationProgramme,worthupto£65million,whichseekstoenablelarge-scalewidespreadelectricitysystemflexibility.Thishasalreadyawardedover£17.5milliontosuccessfulprojectsthroughcompetitionsincludingInteroperableDemandSideResponse,AlternativeEnergyMarkets,Vehicle-to-Everything,InclusiveSmartSolutionsandarangeofDataandDigitalisationprogrammes.TheGovernmentwillannouncefurtherrecipientsoffundingin2023.•TheGovernmentwillworkwithOfgemandInnovateUKtorolloutdigitalisationwithintheenergysector,buildingonourresponsetotherecommendationsoftheEnergyDigitalisationTaskforce.•In2023,theGovernmentwillalsoassessevidencefrominnovationprojectsundertheNetZeroInnovationPortfoliotoidentifytheappropriateenvironmentforenergydatasharingandintegrationofdigitalenergyinfrastructure.Thisincludesafeasibilitystudyexploringtheneedscase,benefits,scope,andcostsofanenergysystem‘digitalspine’,acompetitionsupportingthedevelopmentofsolutionstoautomaticallyregisterdomesticsmallscalelow-carbonassets,andacompetitiontodeterminethetechnicalandcommercialfeasibilityofasmartmeterenergydatarepository.•Laterin2023,OfgemwillrespondtotheCallforInputontheFutureofDistributedFlexibility;settingoutawayforwardtoincentivisethedeploymentofdistributedflexibilityatscale,includingoptionsforatechnicalsolutiontocoordinateflexibilitymarkets.PoweringUpBritain–EnergySecurityPlan44Updatingandreformingelectricitymarketarrangementsandgovernancetosupportflexibility•TheGovernmentistakingthenecessarystepstoensureflexibilitysolutionscanattracttheinvestmentneededtodeploy,forexample,throughREMA.ThenextstepsonREMAaresetoutintheMarketsandAffordabilitysectionofthisPlan.•Ofgemwillpublishitsdecisionslaterin2023onproposalstoensuregovernancearrangementsforlocalenergyinstitutionsarefitforpurposefordeliveringasmartandflexibleenergysystem.PoweringUpBritain–EnergySecurityPlan45PowerNetworks,InterconnectionandSystemGovernanceOurKeyCommitments•WewillpublishanactionplanthisyearinresponsetoElectricityNetworksCommissionerNickWinser’srecommendationsonhalvingthedevelopmenttimefortransmissionnetworkprojects.•Wewillpublishanactionplaninthesummertoaccelerateelectricitynetworkconnections,includingreformoftheconnectionsprocess.•Wewillintroduceguidanceoncommunitybenefitsfornetworkinfrastructurelaterthisyear,subjecttoresponsestoourconsultationonthesemeasures.•TheGovernmentandOfgemwillconsultthissummeronthedetailoftheFutureSystemOperator’snewrolesinresilienceandsecurityandprovideanupdateonimplementationplans.•Wewillworkwithpartnerstorealiseanincreaseininterconnectioncapacity–aimingforatleast18gigawattsby2030,overdoublethecurrentcapacityof8.4gigawatts.Aswetransitiontoamoreresilientandcleanenergysystem,weanticipatethatdemandforelectricitycoulddoubleby2050.Betweennowandthen,thesystemwillneedtoenable50gigawattsofoffshorewindby2030;andthedecarbonisationofthepowersystem,subjecttosecurityofsupply,by2035.Tomeetthischallenge,itiscrucialthatweensurewehavetherightelectricitynetworkinfrastructure,governancearrangementsofthesystem,andinterconnectionwithEuropeanneighbours.Networkconnectionisoftenonthecriticalpathforbuildingnewenergyinfrastructure,soitisessentialthatwepreventnetworksfrombecomingablockertoprogress.TheGovernmentisawarethatthecurrentprocessesforbuildingnewnetworksandconnectingnewgenerationanddemandprojectstothegridneedtobespeededupsignificantlyandaddressingthisisahighpriority.Asdescribedinthischapter,thereareseveralimportantactionsinhandtoreducetimelines,butmoreneedstobedonetoreformsystemsandprocesseswhichweareprogressingasapriority.TheGovernmenthasintroducedlegislation,aspartoftheEnergyBill,toestablishanew,publiclyownedFutureSystemOperator(FSO).Dependingonanumberoffactors,includingtimingsoftheEnergyBillanddiscussingtimelineswithkeyparties,ouraimisfortheFSOtobeoperationalby,orin,2024.PoweringUpBritain–EnergySecurityPlan46Wehavethreekeyprioritiesforoursystem:•Acceleratingdeliveryofthestrategicinfrastructureweneedtosupportadoublingofelectricitydemand,•Anticipatingfutureneedsothatmoneyandresourcescanbesavedbyplanningandbuildingahead,•Maximisingflexibilitytoenablethematchingofsupplyanddemandtominimiseenergywastageandcost.Theactionssetoutinthischapteraimtoensureinvestmentintheelectricitynetworks,attransmissionanddistributionlevel,atthescaleandpaceneeded.Theareasthatwearefocusingontodelivertheseprioritiesandspeedupdeliveryofnewelectricityinfrastructureare:•Halvingdevelopmenttimefortransmissionnetworkprojects,•Takingawholesystemsapproachtonetworkplanning,•Enablinganeffectivelegislativeandregulatoryframework,•Acceleratingelectricitynetworkconnections,•Expandingandoptimisingourelectricityinterconnectionwithneighbours.HalvingdevelopmenttimefortransmissionnetworkprojectsTheGovernmentisworkingcloselywithOfgemandindustrytoachieveourgoalofreducingdevelopmenttimefortransmissionnetworkprojects.LastJulyweappointedNickWinserastheElectricityNetworksCommissionertoadviseonhowthiscanbedone.TheCommissionerisdevelopingoptionsundereightthemes:strategicplan;designstandards;planningapproval;regulatoryapproval;supplychain;peopleandskills;outageplanning;andend-to-endprocess.HewilldeliverhisrecommendationsinJune2023,andweexpectthathewillbeabletosetoutapackageofmeasurestohalvedeliverytimes,basedonasignificantprogrammeofreform.Weacceptthatsubstantialchangestocurrentprocessesarelikelytobeneededtoachieveouraimsandwillrespondwithanactionplanduring2023.Weaimtoaccelerateeverystageinthedeliveryprocessandsetoutbelowactionsonstrategicnetworkplanning,improvingthedevelopmentconsentprocessandcommunityengagement,andeffectivelegislationandregulation.Wealsodescribeactiontoreformthenetworksconnectionsprocess,aswellasworktooptimiseinterconnectionwithothercountries.TakingawholesystemsapproachtonetworkplanningEstablishingaFutureSystemOperatortomanageourenergysystem•Ourenergylandscapeisbecomingincreasinglyintegratedandcomplexinourdrivetonetzero.Thiscallsforacentralbodythatisabletoweighupandadviseontheimpactsandtrade-offsacrossvectorsandplanfromawholesystemsperspectivetoPoweringUpBritain–EnergySecurityPlan47mapthemostefficientandresilientpathahead.ThiswhyweareestablishingtheFSOattheheartoftheenergysystemtoplayavitalroleinensuringsecurityofgasandelectricitysupply,whilstdrivingprogresstowardsourdecarbonisationtargetsandenablinganefficientandeconomicsystemtokeepconsumerbillsaffordable.•AlongsidecurrentElectricitySystemOperatorroles,includingtheircrucialresponsibilityforkeepingthelightson,theFSOwillplanthenetworkfromastrategicwholesystemsperspectiveandprovideimpartialexpertadvicetotheGovernmenttoenableustomakepolicydecisionsbasedonrobusttechnicalevidencewithconsiderationofwholesystemnetworkimpacts.•TheFSOwillalsobechargedwithimplementingthegasSupplySecurityAssessmentandadoptawholeenergysystemcoordinationroletoensureresilienceandsecurityacrossgasandelectricity.•TheGovernmentandOfgemwillconsultthissummeronthedetailoftheFSO’snewrolesinresilienceandsecurityandprovideanupdateonimplementationplansfortheFSO.OfgemwillalsoconsultonthecreationoftheFSO’snewelectricityandgaslicences.WearelaunchingaconsultationonaStrategyandPolicyStatementforEnergyPolicyinGreatBritaintowhichtheFSO(aswellOfgem)musthaveregard.WewillworkcloselywithOfgemandthepartiesinvolvedtoensureasmoothtransitionandensurethesafetyandstabilityoftheenergysystemismaintained.TransitioningtoastrategicallydesignednetworkOurElectricityNetworksStrategicFramework,whichwepublishedjointlywithOfgemlastAugust,setoutasharedvisionforthetransformationoftheelectricitynetwork,bringingtogetherpolicyonnetworkinvestment,smartsolutionsanddata,networkplanningandmanagementandconnectionstothenetwork.NationalGridESOpublishedtheHolisticNetworkDesign(HND)inJuly2022,settingoutforthefirsttimeastrategic,coordinatedplanfortheelectricitynetworkneededtosupport50gigawattsofoffshorewindby2030.Thetransitiontoastrategicapproachtothegridwillcontinuethisyear:•TheElectricitySystemOperatorwillbuildontheHNDbyofferingablueprintthatwillgivegridconnectionstotheremainingoffshorewindprojectsleasedthroughtheScotWindleasingroundinJanuary2022andprojectsintheCelticSea.•Oncethisiscomplete,theFSOwillthencreatethefirstfullCentralisedStrategicNetworkPlanin2025,tosetoutablueprintforthewholeelectricitynetwork.•TheGovernmentwillconcludetheOffshoreTransmissionNetworkReview(OTNR),whichwassetuptoestablishamorecoordinatedapproachtothedesignofconnectionsforoffshorewind,withthepublicationthissummerofrecommendationsforaFutureFramework.TheFutureFrameworkbuildsuponchangesalreadyimplementedundertheOTNR,includingtheHNDapproach,toenabledeliveryofamorestrategicapproachtooffshorewindandassociatedtransmissioninfrastructure.PoweringUpBritain–EnergySecurityPlan48•Andtoencourageneartermprojectswhichalreadyhaveagridconnectiontomovetoamorecoordinated,strategicapproachtotheirnetworkconnections,inDecember2022welaunchedtheOffshoreCoordinationSupportScheme,agrantschemewithupto£100millionavailableforoffshoreelectricityprojects.Theschemewillconcludeinthesummer.ImprovingplanningconsentsandengagingwithcommunitiesThenextstepistoimprovetheplanningprocesstoensurethatelectricityinfrastructureprojectscanbebuiltwithoutunduedelay.Alongsidethis,wearecommittedtoensuringthatprojectsbenefitnotonlythenationasawhole,butalsothecommunitiesinwhichtheyarebuilt.•TheGovernmentispublishingforconsultationchangestotheenergyNationalPolicyStatements,includingtoreflectthestrategicimportanceofandneedfornetworkinfrastructure.•Toensurecommunitieshostingtransmissionnetworkinfrastructurecanbenefitfromsupportingthedeliveryofcheaper,secureandlow-carbonenergyforallofBritain,theGovernmenthaspublishedaconsultationoncommunitybenefitsfornetworkinfrastructure.Theconsultationproposestointroduceguidanceontheappropriatelevelsandformsofbenefits,inordertogivecommunitiestheknowledge,powerandflexibilitytodecidewhatbenefitstheywant,inconsultationwiththeprojectdeveloper,whilstensuringaconsistentapproachtothedevelopmentofcommunitybenefits.Wealsointendtointroducearecommendedleveloffundingforcommunitybenefits,whichwebelievewillincreasetheleveloffundingfromthatseeninexistingexamplesofcommunitybenefitsforelectricitytransmissionnetworkinfrastructure.•Wewillpublisharesponsethisyeartoourcallforevidenceseekingviewsonwhetherlandrightsandconsentsprocessesforelectricitynetworkinfrastructurearefittoaccommodatetherapid,transformativechangetotheelectricitynetworkthatisneeded.•TheGovernmentissupportingtheElectricityTransmission(Compensation)Billtobringforwardproposalstoensurelandownershaveaccesstoalternativedisputeresolutionprocessesincaseswherethereisdisagreementoncompensationwhenlandorrightstoaccesslandhavebeenacquiredbyelectricitynetworkoperatorsforbuildingnetworkinfrastructure.Wewillestablishataskforcethisyeartodevelopproposalsonfacilitatingaccesstoaffordable,bindingalternativedisputeresolution.EnablinganeffectivelegislativeandregulatoryframeworkEnsuringinvestmentinthenetworkaheadofneedToensurethatthenetworksareanenabler,ratherthanabarriertotheenergysystemtransformation,networkinfrastructureneedstobebuiltandavailableaheadofneed.TheGovernmentandOfgemarecommittedtocreatingpolicyandregulatoryframeworkstoPoweringUpBritain–EnergySecurityPlan49supporttheanticipatoryinvestmentrequiredforthisandtoincreasethepaceofinfrastructuredelivery.ThestrategiccontextfornetworkregulationhaschangedandOfgemischanginghowitregulatesinresponse:•WewelcomedOfgem’sAcceleratingStrategicTransmissionInvestmentdecisioninDecember2022,whichsetsoutanacceleratedregulatoryapprovalprocessforaround£20billionoftransmissionprojectsidentifiedintheHolisticNetworkDesignandconfirmedthatthesewillnotbesubjecttocompetition.Thisprovidedcertaintytonetworkcompanieswhohavenowstartedtolineuptheirsupplychaintoacceleratethedeliveryofthesestrategicprojects,readyfor2030.•Forthedistributionnetworks,theregulatorysettlementannouncedinNovemberenablesmorethan£22billionofinitialinvestmentinthelocalnetworksandOfgemwillcontinuetoworktoensurethepricecontrolisagile,allowingflexibilityinfundingtosuitnetworkneedsastheyarise.•Ofgemisundertakingastrategicreviewoffuturenetworkregulationtoensureitisanenablertonetzero.Thiswillinformfuturepricecontrolprocessesthatdetermineinvestmentbynetworkoperatorcompanies.Aconsultationwillbetakingplaceoverthenextfewmonths,followinglastSeptember’sOpenLetter,withapolicydecisiononthewayforwardanticipatedinthesummer.StrategyandPolicyStatement•Toprovideacleardirectionoftravelontheregulatoryframeworkfornetworks,theGovernmentislaunchingaconsultationonadraftStrategyandPolicyStatementforEnergyPolicyinBritain,whichsetsouttheGovernment’sstrategicprioritiesfortheenergysector.•Thedraftmakesitclearthatstrategicnetworkplanning,accelerateddeliveryofnetworkinfrastructure,cost-effectiveanticipatoryinvestmentandtimelynetworkconnectionsarekeypolicyoutcomes.EnergyBillTheGovernmenthasintroducedlegislationviatheEnergyBillthatwill:•Enablecompetitioninonshoreelectricitynetworks,whichisexpectedtosaveconsumersupto£1billionby2050byimprovingefficiencyandstimulatinginnovationinnetworksolutions.•Createanewgovernanceframeworkfortheenergycodes,whichsetoutmuchofthedetailunderpinningtheoperationoftheelectricityandgasnetworks,andthewholesaleandretailmarkets.ThiswillempowerOfgemtosetastrategicdirectionforhowthedetailedrulesoftheenergysystemshouldevolveeachyearandcreatelicensedcodemanagerstoensurethatdirectionisdelivered.WiththeGovernment’ssupport,Ofgemwillthenimplementthesereformswithinthefollowingsevenyears.PoweringUpBritain–EnergySecurityPlan50AcceleratingnetworkconnectionsConnectiontimelineshavebecomeaverysignificantissueaffectingnewelectricitygenerationanddemandprojectsinpartsofthecountry,drivenbytheneedforsignificantinvestmentinthenetworkdescribedabove,aswellasbyaprocessforconnectionswhichisnolongerfitforpurposeforthescaleandpaceofelectrification.Thereareover250gigawattsofgenerationinthetransmissionconnectionqueue(comparedtocirca80gigawattsthatiscurrentlyconnected).Transmissionconnectionofferstobesentoutinthefirstquarterof2023willexceedthetotalforthewholeof2022,whichinturnwascirca85%higherthan2021.ReducingconnectiontimescalesisahighpriorityforGovernment.Aswellastheactionsabovetoaccelerateinfrastructure,thisrequiresreformtoconnectionsprocessandwearecommittedtoexploringalloptionstodothis,includingpotentialregulatorychanges.Weexpectthefollowingactionstoresultinsignificantreductionsinconnectiontimescales.•TheGovernmentisworkingwithOfgem,networkcompaniesandconnectionstakeholderstosupporttheESOGBConnectionReformproject,withaconsultationexpectedtobepublishedbytheESOinMay2023.Theprojectisidentifyingsolutionstoimprovethetransmissionnetworkconnectionprocesssothatitbettermeetstheneedsofconnectioncustomersandtheenergysystemasawhole.•Inthemeantime,theESOisworkingtoreleasenetworkcapacityandimprovemanagementofthetransmissionconnectionqueue,forexamplethroughimprovedmodellingofthenetworkimpactsofnewconnectionsandproposalstoremoveslowmovingprojectsfromtheconnectionqueue,allowingotherprojectstoconnectfaster.Theseactionsshouldreducenetworkconnectiontimescalesinthecomingmonths.•WewillcontinueworkingwiththeEnergyNetworksAssociationtoassesswaystospeedupconnectionstothedistributionnetwork.TheAssociationhasestablishedaStrategicConnectionsGroupcomprisingtransmissionanddistributionnetworkcompanies,GovernmentandOfgem,whichaimstoimprovetheconnectionprocess,particularlyatthetransmission/distributioninterface,andtoagreebestpracticeapproachestoensureconsistencyacrossthecountry.•Bringingtogetherandbuildingonthiswork,wewillpublishanactionplantoaccelerateconnections,includingreformoftheconnectionsprocess,insummer2023.OptimisingourelectricityinterconnectionwithneighboursPowercablesthatlinkourelectricitynetworktothoseofneighbouringcountries–knownasinterconnectors–provideanimportantsourceofresilienceandefficiencyinourpowersystems.Theyallowustoimportpowerattimesoflowrenewableenergyoutputandtoexportexcessgreenpowerattimesofhighrenewableenergyoutput,enablingustokeepBritishwindturbinesspinningevenonceBritishdemandhasbeenmet.PoweringUpBritain–EnergySecurityPlan51In2022,BritainexportedmorepowerthanweimportedforthefirsttimeandinfutureweexpecttoseeexportsofelectricityfromBritainmorefrequentlyasthedeploymentofoffshorewindcontinuesatpace.CollaborationwithEuropeanpartnersisalsoessentialtoensureeffectiveandefficienttradeofpoweroverinterconnectorsandtoenhanceenergysecurityacrosstheUKandourEuropeanpartners.TheGovernmentisworkingcloselywithOfgem,developersandourEuropeanpartnerstorealise:•Anincreaseofinterconnectioncapacity,withanambitionofrealisingatleast18gigawattsby2030,overdoublethecurrentcapacityof8.4gigawatts.•Thebuildingofourfirstmulti-purposeinterconnectors(MPIs).Thesecombineinterconnectionwithdirectconnectionstooffshorewindfarms,thusfacilitatingmorecoordinatedconnectionsfromthewindfarmstoshorewhilstreducingcapitalandoperationalcosts.Anumberofinterconnectorandmulti-purposeinterconnectorprojectshaveappliedtothethirdOfgemcapandfloorwindowforpoint-to-pointinterconnectorsandthefirstOfgemMPIpilotscheme.OfgemiscurrentlyassessingapplicationswithaviewtotakingInitialProjectAssessmentdecisionsbytheendof2023.Workisalsoongoingtodeliveraregulatory,legalandpolicyframeworkfortheoperationofMPIsandconsiderinterconnectionneedsbeyond2030.TheGovernmentthereforeintendsto:•Setoutanambitionforinterconnectionbeyond2030beforespring2024TheUKalsosignedaMemorandumofUnderstandingwiththeNorthSeasEnergyCooperation(NSEC)inDecember2022.ThiswillenableustoworkwithNSECmemberstodeveloprenewablesprojectsintheNorthSeas,specificallyhybridprojectssuchasMPIs.Toensurethiscapacityisputtobestuse,weareinparalleldevelopingmoreefficientelectricitytradingarrangementsinlinewithourTradeandCooperationAgreementwiththeEU.PoweringUpBritain–EnergySecurityPlan52HydrogenandCarbonCaptureandStorageOurKeyCommitments•WeareannouncingsuccessfulapplicantsofthefirstcompetitionwindowforStrands1and2oftheNetZeroHydrogenFund(developmentandcapitalco-funding)andintendtolaunchasecondcompetitionwindowinthespring,toberunbyUKRI.•Weareannouncingashortlistofprojectsforthefirstelectrolytichydrogenproductionallocationround(capitalco-fundingandrevenuesupport)whichweintendtoenterduediligencewith.SuccessfulprojectsinthisroundwillbefundedbyGovernmentuntilthehydrogenlevyisinplace.WeintendtolaunchasecondallocationroundinQ42023•Todesignhydrogentransportandstorageinfrastructurebusinessmodelsby2025,wearealsoaimingtointroducelegislativepowerswhenparliamentarytimeallows.•WeareannouncingtheTrack-1negotiationprojectlistofcaptureprojectswhichincludeprojectsacrosshydrogen,power,industry,andwastesectors.•Wewilllaunchaprocess,laterin2023,toenablefurtherexpansionoftheTrack-1clusters,beyondtheinitialdeployment,identifyingandselectingprojectswithinHyNetandEastCoastClusterwhichcouldbepotentialalternativestoanyoftheinitialTrack-1projects,ifanyareunabletoagreecontractswithinthecriteriaandtimelinesrequired.•WehavelaunchedTrack-2oftheCCUSclustersequencingprocessalongsidethispublicationtoestablishtwofurtherCCUSclustersHydrogenTheupdatedHydrogenInvestorRoadmapprovidesexamplesofopportunitiesacrossthehydrogenvaluechain.Ourexpectationsarethatupto2gigawattsoflow-carbonhydrogenproductioncapacitywillbeinoperationorconstructionby2025,onthewaytoour2030ambitionofhavingupto10gigawattsoflow-carbonhydrogenproductioncapacity,subjecttoaffordabilityandvalueformoney,withatleasthalfofthiscomingfromelectrolytichydrogen.CCUS-enabledhydrogenprojectsarealsoexpectedtoplayakeyroleinscalingupproductionintothe2030s.Thiscouldpotentiallyprovidethenecessarycertaintytounlockupto£11billionofprivateinvestmentandsupportmorethan12,000jobswewanttoseeby2030.TheHydrogenSectorDevelopmentActionPlan,publishedinJuly2022,setsoutactionsthattheGovernmentandindustryaretakingtomaximisetheeconomicopportunitiesthathydrogenpresentsfortheUK.RecognisingthiscriticalpartnershipbetweentheGovernmentandindustryindeliveringhydrogenprojects,inJuly2022weappointedaUKHydrogenChampion,JaneToogood.Weaimtosupportthedevelopmentofthehydrogeneconomythroughthedecadeby:•Bringingforwardabusinessmodelandfundingforlow-carbonhydrogenproductionprojects,•Developingbusinessmodelsforhydrogentransportandstorageinfrastructure,•Facilitatingtheuseoflow-carbonhydrogen.PoweringUpBritain–EnergySecurityPlan53ForwardlookBringingforwardbusinessmodelsandfinanceforhydrogenprojects•ThefirstcompetitionwindowforStrands1and2oftheNetZeroHydrogenFund(NZHF)ranApriltoJuly2022,aimedatprojectswhichrequiredevelopmentorcapitalcostswithoutrevenuesupport,andthesuccessfulapplicantshavebeenannouncedalongsidethisPlan.TheGovernmentintendstolaunchasecondcompetitionwindowforStrands1&2oftheNZHFinthespring,toberunbyUKRIandprovidefurtherfundingroutesfordevelopmentandcapitalcostsofproductionprojectsthatdonotrequirerevenuesupport.•InJuly2022,theGovernmentlaunchedthefirstelectrolytichydrogenallocationround(HAR1),jointlyofferingNZHFcapitalexpenditureandHydrogenProductionBusinessModel(HPBM)revenuesupporttoelectrolytichydrogenprojects.Weexpecttoawardcontractstotallingupto250megawattsofcapacityfromHAR1,subjecttoaffordabilityandvalueformoney.WeaimforcontractstobeawardedinQ42023,withfirstprojectsoperationalin2025.TheGovernmenthaspublishedashortlistof20projectsweintendtoenterduediligencewithalongsidethisplan.HPBMpaymentsforprojectsawardedcontractsthroughHAR1willbefundedbytheGovernmentuntilthehydrogenlevycomesintoeffect.•TheGovernmentintendstolaunchasecondallocationround(HAR2)inQ42023andaimtoawardcontractstoupto750megawattsofcapacityinearly2025,subjecttoaffordabilityandvalueformoney,todeliverupto1gigawattofelectrolytichydrogenproductioncapacityinconstructionoroperationby2025.•TheGovernmentintendstomovetopricecompetitiveallocationin2025subjecttolegislationandmarketconditions.•ThroughtheongoingCCUSClusterSequencingprocess,theGovernmentisenteringintobilateralnegotiationswith2CCUS-enabledhydrogenprojects.•TheGovernmentislegislatingintheEnergyBilltoprovidethelegalframeworktodeliverbusinessmodelsupportforlow-carbonhydrogenproductionandCCUS,andwearealsopublishingaconsultationonproposedregulationsinrelationtothehydrogenproductionandIndustrialCarbonCapturebusinessmodels.•Buildingonthisprogress,theGovernmentwilltakeforwardtheNetZeroReviewrecommendationtodevelopadeliveryroadmapin2023toshowhowhydrogenproductioncanbescaledupoverthecomingdecade.Developingbusinessmodelsforhydrogentransportandstorage•Ouroverarchingstrategicobjectiveforhydrogentransportandstorageinfrastructureisthatthiswillbeakeyelementofwiderenergysystemarchitectureandwillneedtobeavailabletomeettheneedsofusersintheemerginghydrogeneconomy,includingforusersinpower,industry,transportandpotentiallyheat.Toenablethis,wehavePoweringUpBritain–EnergySecurityPlan54committedtodesigninghydrogentransportandstoragebusinessmodelsby2025asstatedintheBritishEnergySecurityStrategy.•TobringforwardhydrogenT&Sbusinessmodels,theGovernmentwillintroducelegislativepowerswhenparliamentarytimeallows,whichwillbecrucialtodesigningthesenewbusinessmodelsby2025.•WerecentlyconsultedontheneedandpotentialapproachesforT&Sinfrastructurestrategicplanning.TheGovernmentresponsetotheconsultationisplannedtobepublishedbytheendofJune2023withanyfurtherdetailstoalignwiththeproductionroadmap.Drivingtheuseoflow-carbonhydrogen•WehavelaunchedaconsultationonaLowCarbonHydrogenCertificationScheme,todemonstratetheemissionsintensityofhydrogenandfacilitateinternationaltrade.TheGovernmentwillrespondin2023.•Weareworkingtoremovebarrierstohydrogenuse,focussingonsectorswhichshowthegreatestpotentialincreatingearlyandlarge-scaleofftake.Forexample,intheFlexibilitysectionofthisplantheGovernmentannounceditsintentiontoconsultontheneedandpotentialdesignoptionsforhydrogentopowermarketintervention.•TheUKHydrogenChampionrolehasbeenextendedforafurthersixmonthstoJuly2023toworkwiththeGovernmentandindustrytoovercomedeliverychallengesinearlyhydrogenprojects.ThiswillbuildonrecommendationssetoutintheHydrogenChampion’sindependentreport,publishedon22March2023.TheHydrogenChampionisnowdrivingactionagainsttheserecommendations,includingafocusonovercomingblocksinthesupplychainandonjobsandskills,maximisingtheeconomicopportunityfortheUK.•Weareplanningtotakeastrategicpolicydecisionin2023onwhethertoseektoenabletheblendingofhydrogenintheexistinggasdistributionnetwork.Furtherdetailswillbeprovidedthisyearincludingthroughthegovernmentresponsetoourconsultationonhydrogentransportandstorageinfrastructure,whichweaimtopublishinQ22023.•TheGovernmentcontinuestosupporthydrogeninnovation.Thefivewinnersoffollow-upfundingintheNZIPLowCarbonHydrogenSupply2competitionhavebeenannouncedthisweek.Theyhavebeenallocatedacombinedtotalof£19.4mtodemonstratecutting-edgetechnologiessotheycanreachthemarketswiftly.Thereportsfromallfeasibilityprojectsarealsobeingpublished.PoweringUpBritain–EnergySecurityPlan55CarbonCapture,UsageandStorageBy2030theCarbonCapture,UsageandStorage(CCUS)sectorisexpectedtounderpinamajorproportionofcrosseconomyCO2reductionsinlegallybindingdecarbonisationambitions,andourinternationalobligationsundertheParisAgreement.OurgeographymeansthattheUKhasoneofthelargestCO₂storagepotentialsofanycountryintheworld.ItisestimatedthattheUKContinentalShelfcouldsafelystore78billiontonnesofCO₂,whichmightbetheequivalentof200yearsoftheUK’sannualCO₂emissions.WearecommittedtodeployingCCUSintwoindustrialclustersbythemid-2020sandfourclustersby2030,withtheaimofcapturingandstoring20-30milliontonnesofCO2peryearby2030.Ourobjectivesfortheseclustersincludetocaptureandstoreupto6milliontonnesofCO2ayearfromindustrialsectors,atleast5milliontonnesofCO2ayearfromengineeredgreenhousegasremovals(suchasBECCSandDACCS),deliverthepowerCCUScapacityrequiredinthe2020sandbeyondtosupportouraimstodecarbonisetheelectricitysystemanddeliverCCUS-enabledblueH2tosupportthedeliveryofourambitionforupto10gigawattsoflow-carbonhydrogenproduction.CCUSmayneedtoreachcapacityforatotalofaround50milliontonnesayearofCO2storagebythemid-2030s.On15March2023,theChancellorannouncedthattheGovernmentwillprovideupto£20billioninfundingforearlydeploymentofCCUS.ThisunprecedentedleveloffundingwillunlockprivateinvestmentandjobsacrosstheUK,particularlyintheEastCoast,NorthwestofEngland,andNorthWales,andkick-startthedeliveryofsubsequentphasesofthisnewsustainableindustryintheUK.Inadditiontothis,weexpecttheactionssetoutinthisplantocrowd-inbillionsofpoundsofadditionalprivatecapitalasourprivatepartnersalsocommittotheCCUSprogramme,puttingusontracktodeliverupto50,000jobsandbringinginvestmenttoourindustrialheartlands.TheUKInfrastructureBankhasalsoidentifiedCCUSasaninvestmentopportunityinitsfirststrategicplan.TheBankisengagingthemarketandprojects,focusingonhowitcanacceleratedeliveryoftheUK’sfirstCCUSclusters.ProjectsareencouragedtocontacttheUKInfrastructureBankabouttheirfinancingneeds.Subjecttoproposalsmeetingitsinvestmentprinciples,thebankstandsreadytoinvest.Wecontinuetodelivertowardstheseaimsby:•ProgressingthroughtheTrack-1ClustersequencingprocessandplanningTrack-1expansion,•LaunchingTrack-2oftheCCUSClustersequencingprocess,•SettingoutavisionforthefutureoftheUKCCUSsector,•DevelopingrulesandregulationstosupportfutureCCUSinfrastructure.PoweringUpBritain–EnergySecurityPlan56ForwardlookProgressingthroughtheTrack-1ClusterSequencingprocessandTrack-1expansion•HyNet(NorthwestEnglandandNorthWales)andtheEastCoastCluster(TeessideandHumber)wereselectedasthefirsttwoclusters.Alongsidethisdocument,weareannouncingtheTrack-1negotiationprojectlistofeightcaptureprojectsfortheseclustersacrossthehydrogen,power,industry,andwastesectorswillbesequencedtoproceedtonegotiationsinthenextstageoftheprogramme.Theselectedprojectsare:HyNet•HansonPadeswoodCementWorksCarbonCaptureandStorageProject•ViridorRuncornIndustrialCCS•ProtosEnergyRecoveryFacility•BuxtonLimeNetZero•HyNetHydrogenProductionPlant1(HPP1)EastCoatCluster•NetZeroTeessidePower•bpH2Teesside•TeessideHydrogenCO2Capture•TheseprojectsusearangeofinnovativeCCUStechnologiesthatcould,ifsuccessfulinthesubsequentstagesoftheclustersequencingprocess,acceleratedecarbonisation,generateeconomicbenefits,kickstartthehydrogeneconomyandsupportenergysecurity.Wewilllaunch,laterthisyear,aprocesstobringinfurtherprojectswithintheTrack-1clustersby2030.ThiswillselectadditionalprojectstoconnectintotheHyNetandEastCoastClusters–includingtheHumberandtheirassociatedstoresastheybecomeviable,andwewillengagethesectorshortlyonhowtodeliverthis.WewillworktoidentifyprojectsthatcouldbepotentialalternativestoanyoftheinitialTrack-1projects,ifanyareunabletoagreecontractswithinthecriteriaandtimelinesrequired.•Thesupportpackageincludesfundingfromthe£1billionCCSInfrastructureFundandNetZeroHydrogenFund,aswellassupportthroughtheunderpinningbusinessmodels,whichcouldsupportcaptureprojectsacrossmultiplesectorsoftheeconomyalongsideCO2transportandstorageinfrastructureinthetwoclusters.•SettingthisrepresentsafundamentalmilestonefortheUKCCUSindustrybystrengtheningourcommitmentandenablingnegotiationstostartwithTrack-1projects.Thisdoesnotguaranteefundingforanyoftheseprojects,whichremainssubjectto:theoutcomeofnegotiations,thepassingofnecessarylegislation,compliancewithsubsidycontrolrules,andcostsfinalisedafteranynegotiationsarecompleted.PoweringUpBritain–EnergySecurityPlan57•AsmentionedintheRenewablessectionofthisplan,twoprojectspassedthepowerBECCSprojectsubmissiondeliverabilityassessmentfordeploymentby2027,DraxPowerLtdandLynemouthPowerLtd.•TheGovernmentwilllaunchaprocess,laterin2023,toenablefurtherexpansionoftheTrack-1clusters,beyondtheinitialdeployment,identifyingandselectingprojectswithinHyNetandEastCoastCluster–includingtheHumber–andtheirassociatedstoresastheybecomeviable,tobeoperationalby2030,wewillengagethesectoronhowtodeliverthis.Subjecttocriteriaunderdevelopment,theGovernmentismindedtoenableengineeredgreenhousegasremovals(GGRs)toapplytoTrack-1expansionandTrack-2.•Tomeetoursectoraimsandthenetzerotarget,wearecommittedtofurtherdevelopmentofindustrialcarboncapture,waste,CCUS-enabledhydrogen,powerCCUS,andengineeredgreenhousegasremovals.Aspartofthis,wewillworkcloselywithelectricitygeneratorscurrentlyusingbiomasstofacilitatetheirtransitiontopowerBECCS,subjecttovalueformoney,takingaccountofenergysecurityontheroadtonetzero.LaunchingTrack-2oftheCCUSclustersequencingprocess•TheGovernmenthaslaunchedTrack-2oftheCCUSclustersequencingprocessalongsidethispublicationtoestablishtwofurtherCCUSclusters.•Atthisstage,weareseekingtoidentifytwotransportandstoragesystemsthatcandeliverGovernment’sobjectivesforTrack-2andconsidersAcornandVikingT&SsystemsasabletomeettheTrack-2eligibilitycriteria,andbestplacedtodeliveronGovernmentobjectivesforTrack-2,subjecttoduediligenceandvalueformoneyassessments.•OthertransportandstoragesystemsthatareabletomeettheeligibilitycriterianowhavetheopportunitytoexpressaninterestinbeingconsideredforTrack-2.Thedeadlineforsubmittinganexpressionofinterestis28April2023.Weintendtoprovideanupdateinthesummer,followingtheclosureoftheexpressionofinterestprocess.SettingoutavisionforthefutureoftheUKCCUSsector•TheNetZeroReviewacknowledgesthecriticalroleCCUShasinreachingnetzeroandthekeyopportunityCCUShasincreatinggrowth.•TheGovernmentrecognisestheimportanceofprovidingfurthercertaintyforindustrybeyondour2030ambitions.WewillthereforecontinuetoworkwithstakeholderstosetoutavisionfortheUKCCUSsector,whichwillprovideclarificationonthefutureofCCUS,howitwillsupportournetzeroambitions,andcruciallyprovidetheconfidenceandcertaintydevelopers,investors,andotherstakeholdersarelookingforinthelongrun.PoweringUpBritain–EnergySecurityPlan58DevelopingrulesandregulationstosupportfutureCCUSinfrastructure•Thisisadevelopingglobalsector,andtheGovernmentisintheprocessofensuringthatthecorrectregulatoryframeworkisinplacetosupporttheindustryasitgrows.TheGovernmenthas,therefore,developedbusinessmodelsacrossthevaluechain,introducedtherequiredlegislationintheEnergyBill,andaredevelopingtherulesandregulationsthatwillgovernanewsetofCO2networksacrosstheUK.PoweringUpBritain–EnergySecurityPlan59InnovationCaseStudy:FusionTheUKisagloballeaderinfusionenergytechnology.Itofferspotentialtobetheultimatecleanpowersolution,deliveringlow-carbon,safe,continuousandsustainableenergywithouttheissueofverylong-lived,high-levelradioactivewaste.WehaveanopportunitytocapitaliseonourleadershipandcreateanewfusionenergytechnologysectorintheUK,creatingjobs,economicgrowthandexportpotentialevenbeforefusionenergyisonthegrid.In2021,theUKFusionStrategysetoutambitiousobjectivestodemonstratethecommercialviabilityoffusionbybuildingaprototypefusionpowerplantcapableofprovidingenergytotheUKgridby2040,andtobuildaworld-leadingfusionindustrywithhigh-exportpotential.TheUKGovernmenthascommitted£222millionforthefirstfiveyearsofUKAEA’sSphericalTokamakforEnergyProduction(STEP)programme,whichaimstodesign,develop,andbuild,by2040,theprototypefusionpowerplant.ThiswilldemonstrateapathtothecommercialviabilityoffusionenergyandisattheheartoftheFusionStrategy.TheGovernmenthasalsoprovided£42millionfortheFusionIndustryProgramme.Thisinitiativewillgalvanisecommercialfusioninnovationthroughachallengefund,designedtosupportUKbusinessesinimportanttechnicalchallengesoffusion.TheFusionClusterisacommunityofpublicorganisationsandbusinessesworkingtogetherattheCulhamCentreforFusionEnergytoshareknowledgeanddrivefusionenergyfromtheorytoreality.Membershaveaccesstocuttingedgetechnicalfacilities,start-upbusinesssupportandexperiencedpeers.ProgresssofarTheGovernmenthasalreadyidentifiedandannouncedasitefortheSTEPpowerplant,whichwillbebultinWestBurton,transformingthesiteofanexistingcoalpowerplantinagreenenergycluster.Ithassetupthecompanythatwilldeliverthispowerstationandbegundevelopingthecommercialrelationshipsneededtobuildit.TheUKistheonlycountryintheworldtodevelopandintroducelegislationforaproportionateregulatoryregimeforfusionthatencouragesinnovationwhilstputtingsafetyattheheartofourfusionsector.Takentogether,theGovernment'sclearstrategyandinvestmentinfusionenergyR&D,andregulationanddevelopmentofthesectorhasmadetheUKthebestplaceintheworldtodofusioninnovation.FusioncompaniesfromaroundtheworldareinterestedincollaboratingwiththeUKandseveralcompanieshavemadeannouncementsaboutplanstobuildnewfacilitiesorexperimentsintheUKbecauseoftheuniqueprogrammestartedbytheUK.PoweringUpBritain–EnergySecurityPlan605.MarketsandAffordabilityPoweringUpBritain–EnergySecurityPlan61MarketsandAffordabilityMarketsareattheheartoftheGreatBritishenergysystem.Theyprovidepricesignalswhichguidedecisionsonsupplyanddemand,investmentinnewcapacity,andtheefficientoperationofthesystem.Thisultimatelyhelpstodeliverclean,reliable,affordableenergysuppliesforconsumers.InordertodeliveronourambitiontoprovideamongstthecheapestenergypricesinEuropeby2035,weneedtotakeafundamentalreviewofhowtoreformthesemarketsandmakethemworkforconsumers.RetailmarketsandaffordabilityOurKeyCommitments•Weintendtoconsultinsummer2023onoptionsforanewapproachtoconsumerprotectionintheenergymarketsfromApril2024onwards.•Weintendtoconsultonthefutureofthepricecapondefaulttariffsinsummer2023•WeaccepttheIndependentReviewofNetZerorecommendationthatGovernmentshouldcommittooutliningaclearapproachtogasvs.electricity‘rebalancing’bytheendof2023/4andshouldmakesignificantprogressaffectingrelativepricesbytheendof2024•WecommittolaunchingaCallforEvidenceinsummer2023onhowtheregulatoryframeworkneedstoevolvetosupportnewwaysofofferingenergysupply,beforeaconsultationonoptionslaterthisyear.Theenergyretailmarketisthemaininterfacebetweenconsumersandtheenergysystem.Itisthereforeacriticalenablerofconsumerchoiceandparticipationasthatsystemdecarbonises.However,theretailmarketisnotworkingasitshouldandhasbeenundersignificantstrainasaresultofhighglobalgaspricesandresultingmarketvolatility.ThefocusonpricecompetitionandtheincentivesforsupplierstofollowthehedgingmethodologyunderpinningOfgem’sPriceCapmethodologyhavecontributedtoaretailmarketwhichisoverlyfocusedontheshort-term.Moreinvestmentisneededinnewtechnologiesandproductstoenableanddrivetheinnovationandchangesinconsumerbehaviourthatthefutureenergysystemneeds–forinstance,thegrowinguptakeofEVsandlow-carbonheating,ortoensurethatconsumersarerewardedforshiftingdemandtotimeswhenmoreelectricityisavailable.TheGovernmentcontinuestobelievethatenergysuppliersplayakeyroleinthesystem,anditisthereforenotrighttosaythatatotaloverhauloftheregulatoryframeworkisappropriate.TheGovernmentdoesnotwanttodisruptenergysuppliers’deliveryofarangeofcriticalprogrammes,however,thereisastrongcaseforafocusedprogrammeofPoweringUpBritain–EnergySecurityPlan62reformsothatthemarketworksbetterforconsumersandactsasadriverforthetransitiontoasecure,low-costandlow-carbonenergysystem.Thatiswhyournewvisionfortheenergyretailmarketisonethatisfocusedonthreekeythemes:•Betterforconsumers:ensuringthatenergybillsremainfairandwecanworktowardsabundantcheapenergy.Energymustbeaffordableforallconsumers,whileweneedtoupholdandimproveconsumerstandards.•Moreresilientandinvestable:betterpreparedforfuturewholesalepricevolatilityandbetterabletoshieldconsumersfromthecostsofsupplierfailure,combinedwithareturntocompetitionandprofitabilityforwell-runsuppliersofferingvalueforconsumers.•Supportswiderenergysystemtransformation:unlockgreaterinnovationwithintheretailmarketbytacklingregulatorybarriers,alongsidethedeliveryofwidersystemchangessuchasthesmartmeterrolloutandMarket-wideHalf-HourlySettlement.ForwardlookBetterforconsumers•TheGovernmentintendstomoveawayfromuniversalenergybillsupportandtowardsbettertargetedsupportforthosemostinneed,aspartofanewapproachtoconsumerprotectioninenergymarketsfromApril2024onwards.TheGovernmentintendstoconsultonoptionsforanewapproachinsummer2023.•ThePriceCapondefaulttariffswillensurefallingwholesaleenergypricesarepassedontohouseholds.However,itisnotalong-termsolution,andtheGovernmentintendstoconsultonthefutureofpriceprotectionsinsummer2023.•Followingtheunacceptabletreatmentofsomevulnerableconsumers,theGovernmentisworkingwithOfgemandindustrytoimprovetheprocessesinplaceforinstallingorswitchingcustomerstoprepaymentmeters.ThisincludesdeliveryofanewcodeofpracticeforthesectorandfurtherpotentialmeasuresidentifiedthroughOfgem’srecentcallforevidencethatcouldreducetheneedforprepaymentmeterstobeinstalledandimprovetheprepaymentexperienceforcustomers.•OfgemwillcontinueitsprogrammeofMarketComplianceReviews,aimedatimprovingsectorpracticeandcustomerservice.•Wewillconsiderwhethersufficientconsumerprotectionsareinplaceinthenon-domesticmarket,supportedbyOfgem’songoingreviewofthemarket.OfgempublishedinitialfindingsaheadofSpringBudget2023andtheirCallforInputcloseson31March.•WewilllaunchaCallforEvidencebysummer2023toreviewthesituationfordomesticconsumersthatreceivetheirenergyvianon-domesticcontracts.ThiswillPoweringUpBritain–EnergySecurityPlan63informadecisiononwhetheradditionallong-termconsumerprotectionsarerequiredforthisgroup.Moreresilientandinvestable•Ofgemisdevelopingandimplementingnewfinancialcontrols,includingringfencingandcapitaladequacyrequirements,toincreasetheresilienceofenergysuppliers.TheGovernmentandOfgemwillensurethatthisincreasedresiliencemeansthatconsumersarelessexposedtothecostofsupplierfailureandoffersthefoundationforsustainablecompetition.Theprocessisalreadyunderway.•WearereviewingthelessonslearntfromtheBulbSpecialAdministrationRegime(SAR)andsupplierfailures,toensurewecancontinuetorespondeffectivelyasmarketconditionsevolve.TheGovernmentwillalsoexaminewhethertherearechangestoSARandSupplierofLastResort(SoLR)thatcouldimprovetheprocessesformanagingsupplierexitsinthefutureretailmarket.•ThroughtheEconomicRegulationReview,theGovernmentisconsidering(amongotherissues)howtoincreasetheattractivenesstoinvestorsoftheenergysector,withtheintentionofensuringthatOfgemisempoweredtodelivertherightconditionsforadditionalinvestment.TheGovernmentwillbeconsultingontheproposalslaterinspring.•UnderthecurrentPriceCap,Ofgemwillcontinuetoensurethatwellrunsupplierscanearnareturnwhichisappropriatetotheretailenergysectorandwhichpromotesthelong-terminvestmentneededtodriveinnovation.Supportswiderenergysystemtransformation•Energysupplierswillcontinuetoplayavaluableroleintheretailmarket.However,theGovernmentbelievesthatspecificfeaturesofthecurrentregulatoryframeworkactasbarrierstoinnovation.Insummer2023wewilllaunchaCallforEvidenceonhowtheframeworkneedstoevolvetosupportnewwaysofofferingenergysupply,beforeaconsultationonoptionslaterin2023.•WeaccepttheIndependentReviewofNetZerorecommendationthatGovernmentshouldcommittooutliningaclearapproachtogasvs.electricity‘rebalancing’bytheendof2023/4andshouldmakesignificantprogressaffectingrelativepricesbytheendof2024.Rebalancingwillgeneratetheclearshort-termpricesignalnecessarytoshiftbothhouseholdsandbusinessestolower-carbon,moreenergyefficienttechnologieslikeheatpumps.ThisisvitaltomeetGovernment’sexistingdecarbonisationcommitments,includingourgoalof600,000heatpumpsinstalledperyearby2028.•TheGovernmentexpectsOfgemandindustrytoworktogethertoensuretimelyimplementationofMarketWideHalf-HourlySettlement,asakeyenableroftheenergymarketofthefuture.PoweringUpBritain–EnergySecurityPlan64ReviewofElectricityMarketArrangementsOurKeyCommitments•WeaimtopublishasecondconsultationontheReviewofElectricityMarketArrangementsinautumn2023,andwilltakedecisionsonshorter-termreformsmorequicklywhereitisviabletodosothroughouttheprogramme.TheGovernmentiscommittedtoensuringthatelectricitymarketarrangementscontinuetobeenhancedintheshorttomediumterm.Forexample,wearecontinuingtoimproveandrefinetheexistingContractsforDifferenceschemeandCapacityMarketscheme.WearecommittedtoreviewingtheelectricityreliabilitystandardtoensureGreatBritainhasarobustandenduringcapacityadequacyframework.AspartoftheBritishEnergySecurityStrategy,weannouncedtheReviewofElectricityMarketArrangements(REMA)programme.ItisexploringenduringreformstoBritain’selectricity(non-retail)marketarrangementstoensurethattheyremainfitbothfortodayandfuturegenerations–harnessingthebenefitsofcheap,abundantrenewablesinBritain,enhancingenergysecurity,andhelpingtodeliverourworld-leadingclimatetargetswhileensuringafairdealforconsumers.Theprogrammeisaimingtofulfilthefollowingobjectives:•Ensureacost-effectivetransitionaswemovetoourfuturenetzeroconsistentpowersector,•Maintainasecureelectricitysupplythroughoutthe2020sandbeyond,aswecontinuetomoveawayfromfossilfuel-basedgenerationtechnologies,and•Ensureourdecarbonisationambitionsaredelivered,sothatthepowersectorcontributestowardsourlegally-bindingcarbonbudgetsandweachieveouraimofafullydecarbonisedpowersectorby2035,subjecttosecurityofsupply.WeranourfirstREMAconsultationfromJulytoOctober2022.Itconsideredthekeywholesystemsissuesthatneedtobeaddressedthroughelectricitymarketarrangementstodeliveranenergysystemforthefuture.InMarch2023,wepublishedthesummaryofresponsestothefirstREMAconsultation.Basedonthefeedbackreceived,wesetoutareasthatwewillcontinuetoexplore,aswellreformoptionsthatwillnotbetakenforwardintothenextroundofassessment.PoweringUpBritain–EnergySecurityPlan65ForwardlookDrivingforwardourreviewofelectricitymarketsarrangements•Tosustainmomentumonthisimportantprogrammewhileensuringrobustevidencegathering,weaimtopublishasecondREMAconsultationinautumn2023andwilltakedecisionsonshorter-termreformsmorequicklywhereitisviabletodosothroughouttheREMAprogramme.Followingthediscountingofsomeoptionsinresponsetothefirstconsultation,wewillcontinuetonarrowdownandrefinepotentialpolicyoptionsthatwillbringaboutmarketchangestomeettheREMAobjectives:oWewillassessthesepolicyoptionsagainstfiveassessmentcriteria,whichwehaveupdatedfollowingstakeholderfeedbacktoourinitialconsultation.TheseareDeliverability,InvestorConfidence,Whole-SystemFlexibilityandAdaptability,aspreviouslysetout,andValueforMoney(previously“leastcost”).Wethinkthisbetterreflectsthebroadercostsandbenefitsofchangeforconsumersandtheenergysystem.oOuraimforthesecondconsultationistosetoutadirectionoftravel,nextstepsandsupportasmoothtransitiontoanynewarrangementsovertime.Weaimtosignificantlynarrowtheoptions-identifyingleadoptionswhereachievable,shiftingthedebatetofocusonahandfuloffoundationalpolicyareasandtheirinteractions.•TheGovernmentwillcontinuetoengageextensivelywithstakeholdersthroughoutthisperiod.Wewillalsocontinuetoconductexternalresearchprojectstoinformpolicydevelopmentandassistinconstructingpolicypackages.Theseactivitiescomplementtheextensiveevidence-gatheringdonetodate.Wewillalsocontinuetoensurecoherenceacrossourworktoreformenergymarkets,particularlyinconsideringtherelationshipbetweenwholesaleelectricityandretailenergymarkets.PoweringUpBritain–EnergySecurityPlan666.DeliveryTimelinesPoweringUpBritain–EnergySecurityPlan67DeliveryTimelinesEnhancingSecurityofGasSupply202320242025-302031-35MaximisingsupplyofUKgas33rdLicensingRoundFromQ2-NSTAawardsfirstlicencesNorthSeaTransitionDealTheDealtargetsareductioninupstreamproductionemissions,againsta2018baseline,by10%in2025,25%in2027and50%in2030,whilereducingcarbonemissionstozeroby2050.AcceleratingproductionNewprojectswillbenefitfromanacceleratedregulatoryprocessUpdatestoGasSafetyManagementRegulationsHSEhaslaidSIthatamends,amongstotherthings,theWobbeNumberQ2-ChangetotheWobbeNumbertakeeffectMaintainingandsecuringourgasimportandexportcapacityMemorandumofUnderstandingwithIrelandGovernmentagreeingaMemorandumofUnderstandingongassecurityofsupplywithIrelandLNGterminalsOperatorsoftheGrainandSouthHookLNGterminalsinvestinginupgradestotheirfacilitiestoincreasecapacityUK-USEnergySecurityandAffordabilityPartnershipUSwillstrivetoexportatleast9-10billioncubicmetresofLNGin2023viaUKterminals.IncreasingsystemresilienceGasSupplySecurityofAssessmentGovernmenttopublishmethodologyandimplementationplanDeliverybyFSOwhenestablishedGasSecurity-roleofgasstorageandotherformsofflexibilityGovernmenttoissueanupdateonthisworkbeforetheautumnsettingoutnextsteps.DemandsideresponseGovernmentisworkingwithNGTtoincreasetheavailablevolumesforindustrialdemandreductionforwinter23/24EnsuringlongterminvestmentingasnetworksBiomethaneandGreenGasSupportSchemeGGUSoperational–settodeliverenoughbiomethanegasgridinjectiontoheataround200,000homesperyearatpeakproductionGovernmenttointroducepolicyframeworkforbiomethanefrom2026tofollowthecurrentGGSSPoweringUpBritain–EnergySecurityPlan68EnergyEfficiencyandCleanHeat202320242025-302031-35OBJECTIVES♦Ambitiontoreduceenergydemandby15%by2030.EnergyEfficiencySchemesGreenHomesGrant–LocalAuthorityDeliveryschemeLAD3deliveryplannedtoendSeptember–December2023afteragreementfromBEIS/HMTMinistersforamanagedclosureofprojects.HomeUpgradeGrantDeliverupgradestoaround45,600homesbyMarch2025underHUG1,2andCLRHUG3wouldseethisnumbergoupto106khomestreatedby2030SocialHousingDecarbonisationFundDeliverupgradestoaround94,000homesfromApril2023-Sept2025.Wave3and4targetsto2030tbc818,700homestreatedacrossSHDFDemo,Wave1,Wave2,Waves3and4.PublicSectorDecarbonisationSchemePSDSphase3claunchexpectedQ2-3PSDSphase3runningtoMarch2025.EnergyCompanyObligationSchemes(ECO4)Deliverupgrades–ECO4willupgrade300,000homesfrom2022-2026GreatBritishInsulationSchemeDelivermainlysingleinsulationmeasuresfromaroundspring2023toMarch2026.GBISwillupgradeover300,000homesIETFExtensionPhase3Launchinearly2024,threeapplicationwindowswillrununtilclosureinApril2025.Projectstocompleteby3032atthelatest,5yearmonitoringperiodwillconclude2037.ConsumeradviceandcommsSMEEnergyAdviceService2023LaunchdigitalSMEadviceservice;SMEenergyadviceschemepilotGreenHomeFinanceAcceleratorCompetitionDiscoveryPhase:March23–Sep23PilotPhaseprojectsselectedOct23PilotPhasestartsDec23AcceleratorPilotphaserunningtoMarch2025ProgrammeEvaluation(March2025toAugust2026)HeatingHydrogenheatingtrialsandtownpilotAnnouncementofvillagetriallocation(2023)Neighbourhoodtrialbegins(2024)Villagetrialbegins(2025);Publishtownpilotplans(2025)Potentialrolloutofhydrogenheatingsubjectto2026policydecisionsBoilerUpgradeSchemeDeliverheatpumpsunderschemetoMarch2028andbeginCleanHeatMarketMechanism(2024)HeatPumpInvestmentAcceleratorLaunchCompetition-March2023Competitionlivetobids-May2023Grantfundingagreedandpublicannouncementofwinners–April2024.Projectsunderconstruction(2024toMarch2026)Projectsunderconstruction(2024toMarch2026)PoweringUpBritain–EnergySecurityPlan69202320242025-302031-35HeatnetworksPilotheatnetworkzonesHeatNetworkEfficiencyScheme(2023–2025)HeatNetworkMarketFrameworkbegins(2024)HeatNetworkTransformationProgrammeincl.GreenHeatNetworkFund(2022–2028)Enableheatnetworkzonestobedesignatedby2025PhasingoutfossilfuelheatingRespondtoconsultationsonphasingoutfossilfuelheatinginoffgasgridareasAmbitiontoendsaleofnewandreplacementgasboilersby2035LegislationandotherpoliciesSmartMeterInstallationTargetsFrameworkMid-pointconsultationandresponseMinimumenergyefficiencystandards-nondomestic(PRS)PublishGovernmentresponsefornon-domPRSregulationsconsultationAmbitiontointroduceaminimumenergyefficiencystandardofEPCBby2030ProductstandardsConsultingonrequirementsforlighting.Consultonnewrequirementsfordomesticcookingandsmall-midsizespaceheatingappliances2023-2025toconsulton/considertheintroductionofMEPSforprofessionalcookingappliancesandupdatedMEPSforwaterpumpsMinimumenergyefficiencystandards-privatelyrentedhomesPublishsummaryofresponsesbyendof2023ImprovinghomeenergyperformancethroughlendersRespondtoconsultationbyendof2023ImprovingenergyperformanceofowneroccupiedhomesPublishconsultationonoptionsbyendof2023ClimateChangeAgreement(CCA)SchemePublishedconsultationon2-yearextensionofscheme.PublishGovernmentResponsetoconsultation.Laylegislationforextension2-yearextension(2025-2027)PoweringUpBritain–EnergySecurityPlan70Nuclear202320242025-20302031-35OBJECTIVES♦OneFinalInvestmentDecisionthisparliament,progressingtwointhenextparliament♦Ambitiontoincreasedeploymentofcivilnucleartoupto24gigawattsby2050(upto25%ofprojecteddemand)DeliveroneFIDthisparliamentSizewellC-FinalInvestmentDecisionByendofthisParliamentTwoFIDsnextparliament,includingSmallModularReactorsLaunchConsultationonnewSitingStrategytoinformNationalPolicyStatementByend2023LaunchofGBNwithaimtolaunchmarketengagementinAprilAprilAmbitiontoselecttheleadingSMRtechnologiesandco-fundthisexcitingnewtechnologyfortheUK.ByautumnProjectsprogressedtoFIDincludingSMRs2025-2029LaunchNuclearFuelFund,includingfundingtoWestinghouseforSpringfieldsfuelfacilitiesJan-FebAdvancedModularReactorsAMRR&DprogrammeSummer:commenceworkonReactorsandFuelsMarch2025PhaseBconcludesPhaseCConstruction2025-2035subjecttoSRdecisionsPoweringUpBritain–EnergySecurityPlan71Renewables(CrossCuttingDevelopmentsandSolar)202320242025-302031-35OBJECTIVES♦Upto70GWsolar(roofandgroundmounted)by2035Cross-cuttingrenewablespipelinedevelopment,skills,infrastructure,andsupplychainConsiderreformstotheCfDscheme,thiswillincludethepotentialtosupportrepoweredprojectsandnon-pricefactors.CfDAR5opensinMarch,resultsinlatesummerCfDAR6opensinMarch,resultsinlatesummerPotentialnon-pricefactorlegislationinforce,takeseffectfromAR7StrengtheningtheEnergyNationalPolicyStatements(NPS)Publishthedraftforconsultation.DesignatethefinalsuiteofNPSsbyend2023ReviewandupdateIntroducelegislationtostreamlinetheconsentingprocessforNationallySignificantInfrastructureProjects,includingoffshorewindandotherrenewableprojectsthatdefinedmeetqualitystandardsLevellingUpandRegenerationBillRoyalAssentexpectedearlysummer.PilotsforFastTrackconsentingprocess,fromlateautumnWorkthroughtheNetZeroGreenJobsDeliveryGrouptoupskillexistingtradeindustriesandfacilitateinterventionstoincreasenewentrantstothesector.Developgovernmentandindustryactionstounlockpowerandnetworkssectorworkforceandskills,endof2023NetZeroSkillsandWorkforceActionPlanpublishedin2024.LaunchingtheTask&FinishGroupforCriticalMineralResiliencetoinvestigatecriticalmineraldependenciesandvulnerabilitiesacrossUKindustrysectors,whilesupportingend-userstopromoteresilienceanddiversityintheircriticalmineralsupplychains.DeliverfindingsattheendoftheyearInconsultationwithotherdepartments,DepartmentforBusinessandTradewillrespondearly2024Explorepolicyoptionsforincreasingthedeploymentofon-sitegenerationinmanufacturing.Thiswillhelpdecarbonisebusinessandreducedependenceonimportedenergy.Ofgemreducingcostsforconnectionapplicationsfrom1April2023Governmentpublishingactionplaninsummertoaccelerateconnections.PoweringUpBritain–EnergySecurityPlan72202320242025-302031-35IncentivisinginvestmentforrooftopandgroundmountedsolarEstablishagovernment/industrytaskforcetodriveforwardtheactionsneededbygovernmentandindustrytodeliverthe70GWambitionTaskforcesetupPublishasolarroadmapsettingoutaclearstepbystepdeploymenttrajectorytoachievethefivefoldincrease,upto70GW,ofsolarby2035todemonstratetheGovernment’sclearcommitmenttothesectorandprovidecertaintytoinvestorsRoadmappublished2024Assesshowlow-costfinanceoptionscanbeprovidedtohouseholdsandsmallbusinessesforsolartechnology.Lookatfacilitatinglow-costfinancefromretaillendersforhomesandsmallbusinesspremises.Implementpolicyinterventionsrequired,Q1-2MonitorimpactandassessiffurtherinterventionrequiredRemovalofVATonsolarpanelsinstalledonresidentialaccommodationsuntilMarch2027RangeofgreentechnologiesexemptfrombusinessratesuntilMarch2035PlanningreformandbuildingstandardsforsolarConsultonpermitteddevelopmentrightstosupportsolardeploymentPublishedconsultationonchangestoPermittedDevelopmentrightsinQ1RegulationsamendedandguidancestrengthenedQ4Implement,Q1MonitorimpactandassessiffurtherinterventionrequiredDevelop&publishguidancefortheinstallationofsolarontheGovernmentandwiderpublicsectorestatePublishedpublicsectordecarbonisationguidancePublishcentralGovernmentguidanceContinuetoencouragetheuseofsolarPV,whereappropriate,innewhomesandbuildingsPublishconsultationonFutureHomesandBuildingsStandardFutureHomeStandardandFutureBuildingsStandardinforce,furtherupliftingenergyperformanceinnewhomesandbuildings,by2025PoweringUpBritain–EnergySecurityPlan73Renewables(WindandBiomass)202320242025-302031-35OBJECTIVES♦Upto50GWby2030,includingupto5GWfloatingwindPlanningreformtoacceleratewinddeploymentIntroducelegislationandguidancetoimplementanewOffshoreWindEnvironmentalImprovementPackageEnergyBillRoyalAssentexpectedearlysummerIntroduceenvironmentalstrategiccompensationmeasures,strategicmonitoring,environmentalstandardsandmarinerecoveryfundbyendof2023AmendHabitatsRegulationsAssessmentConsultonchangestotheNationalPlanningPolicyFrameworkinEnglandtodeploymoreonshorewindDLUHCGovernmentresponseandpublicationofupdatedNPPFPublicationofupdatedplanningguidanceDeveloplocalpartnershipmodelforonshorewindinEnglandLaunchlocalpartnershipconsultationGovernmentResponsetoconsultationInfrastructure,skillsandsupplychainFloatingOffshoreWindManufacturingInvestmentSchemesupportingfloatingwindinfrastructureinvestmentSchemelaunchMarch30thEndofschemeMarch2025OffshoreWindManufacturingInvestmentSchemesupportinginvestmentinfixed-bottomoffshorewindmanufacturingandportfacilitiesEndofscheme(March)ContinuetomonitorgrantawardsafterMarchConstructionoffacilitiessupportedthroughschemeexpectedtocompleteendof2024Addresstheradarinterferencechallengesfromoffshoreandonshorewindturbinestoairdefenceandairtrafficradarsystems.Procurementcompetition,launchinginautumn2023toidentifyasolution.PoweringUpBritain–EnergySecurityPlan74202320242025-302031-35BiomassTheBiomassStrategywillsetouthowsustainablebiomasscouldbebestutilisedacrosstheeconomytohelpachievetheGovernment’snetzeroandwiderenvironmentalcommitmentswhilealsosupportingenergysecurity.PublishBiomassStrategyPowerBECCSPowerBECCSprojectsubmissionprocessOutcomeofprojectassessmentannouncedEngagementwithprojectsthatpassedthedeliverabilityassessmentfortheprojectsubmissionprocessforpowerBECCSBusinessmodelsforpowerBECCSGovernmentresponsetoconsultationonpowerBECCSbusinessmodelsPoweringUpBritain–EnergySecurityPlan75Flexibility202320242025-302031-35DrivingthedeploymentofpowerCCUSinthe2020sandbeyondTrack-1andTrack-2CCUSprogrammeTrack-1projectshortlistannounced,andnegotiationscommenceTrack-1powerCCUSprojectoperationalPotentialpowerCCUSproject(s)operationalfromTrack-2andTrack-1expansionLaunchTrack-2andTrack-1expansionPotentialpowerCCUSproject(s)operationalfromTrack-2andTrack-1expansionFuturepolicyframeworkforpowerCCUSPublishcallforevidenceresponseinSpringHydrogentopowerHydrogentopowermarketinterventionConsultontheneedandpotentialdesignoptionsformarketinterventiontosupporthydrogentopowerIdentifyingandtacklingnon-financialbarrierstothedeploymentofhydrogentopowerDevelopingenablersforcleardecarbonisationpathwaysforunabatedgasgenerationDecarbonisationReadinessPublishedDecarbonisationReadinessconsultation,responsetobeissuedinsummer1July2024proposeddateforupdatedDecarbonisationReadinessrequirementstoapplyfromCapacityMarketPublishedCapacityMarketconsultationcoveringproposalstostrengthensecurityofsupply,tighteningemissionslimitsandacallforevidenceon‘managedexits’toenablehighcarboncapacitytoleavetheirlongtermCMagreementsearlytodecarbonise,subjecttocertainconditionsbeingmetFacilitatingthedeploymentofelectricitystoragePolicyframeworktoenableinvestmentinlarge-scalelong-durationelectricitystoragePutinplaceanappropriatepolicyframeworkby2024toenableinvestmentinlargescalelongdurationelectricitystorage,withthegoalofdeployingsufficientstoragecapacitytobalancetheoverallsystemPoweringUpBritain–EnergySecurityPlan76202320242025-302031-35ProductandinstallationstandardPublishaproductandinstallationstandard(knownasa“PubliclyAvailableStandard”)fordomestic/small-scalebatterystorageaswellasguidanceforgrid-scalestorage.LODESprogrammeAnnouncefurtherrecipientsoffundinginearly2023underthesecondphaseoftheLongerDurationEnergyStorage(LODES)programmeUnlockingdemandsideflexibilityanddigitalisationatscaleDeliveringasmartandsecureenergysystemPublishresponsetoaconsultationon‘Deliveringasmartandsecureenergysystem’NetZeroInnovationPortfolioGovernmenttoassessevidencefrominnovationprojectsundertheNetZeroInnovationPortfoliotoidentifytheappropriateenvironmentforenergydatasharingandintegrationofdigitalenergyinfrastructure.FlexibilityInnovationProgrammeAnnouncefurtherrecipientsoffundingGovernanceandmarketstosupportflexibilityOfgemwillrespondtotheCallforInputontheFutureofDistributedFlexibility;settingoutawayforwardtoincentivisethedeploymentofdistributedflexibilityatscale,includingoptionsforatechnicalsolutiontocoordinateflexibilitymarkets.Ofgemtopublishitsdecisionslaterin2023onproposalstoensuregovernancearrangementsforlocalenergyinstitutionsarefitforpurposefordeliveringasmartandflexibleenergysystem.EnergyMarketReformReviewofElectricityMarketArrangements(REMA)AimtopublishsecondREMAconsultationinautumn2023PoweringUpBritain–EnergySecurityPlan77PowerNetworks,Interconnection,andSystemGovernance202320242025-302031-35HalvingdevelopmenttimefortransmissionnetworkprojectsElectricityNetworksCommissionerreviewQ2–ElectricityNetworksCommissioner(NickWinser)deliversrecommendationsGovernmentactionplananddeliveryGovernmentpublishesactionplaninresponsetoElectricityNetworksCommissionerrecommendationsGovernmentimplementstransmissionnetworksactionplanTakingawholesystemsapproachtonetworkplanningEstablishFutureSystemOperatorGovernmentandOfgemlaunchconsultationsonthedetailoftheFSO’snewrolesinresilienceandsecurityEstablishFSObyorin2024CentralisedStrategicNetworkPlanSecondTransitionalCSNP-deliverHighlevelNetworkDesignfollow-upexerciseandwidernetworkreinforcementsbylate2023FullCSNPtobedeliveredin2025bytheFutureSystemOperatoronceestablishedOffshoretransmission–FutureFrameworkGovernmenttopublishproposalsinsummerforaFutureFrameworkforstrategicoffshoretransmissionOffshoretransmission–CoordinationsupportschemeFundingdistributedunderOffshoreCoordinationSupportSchemebysummer2023DevelopcommunitybenefitsofferGovernmentresponsetocommunitybenefitsconsultationandpublicationofguidanceImplementationofcommunitybenefitsinlinewithguidanceReviseNationalPolicyStatementfornetworksGovernmentpublishingconsultationonupdatingtheNPSfornetworksEnablinganeffectivelegislativeandregulatoryframeworkDistributionnetworksOfgem’sED2pricecontrolfordistributionnetworksstartsApril2022,allowingagileinvestmentflowintolocalnetworks.NetworkregulationOfgemconductingstrategicreviewoffuturenetworkregulation.Ofgemtoimplementchangestonetworkregulationaheadofnextpricecontrolperiods.PoweringUpBritain–EnergySecurityPlan78202320242025-302031-35StrategyandPolicyStatementGovernmentconsultingondraftStrategyandPolicyStatementsettingoutstrategicprioritiesfortheenergysectorincludinginrelationtonetworkregulation.IntroduceonshorenetworkcompetitionPassprimaryandsecondarylegislationtointroduceonshorenetworkcompetitionsubjecttoParliamentarytimeFirstcompetitioncouldberuninlate2024AcceleratingelectricitynetworkconnectionsGovernmentactionplanGovernmenttopublishinsummeranactionplantoacceleratenetworkconnections.Government,OfgemandIndustryimplementplanstoacceleratenetworkconnectionsESOGBConnectionReformprojectESOwillpublishconsultationonconnectionreform(expectedJune)andimplementationplaninNovember.ESOreleasesnetworkcapacityandmanagementoftransmissionconnectionqueueESOimprovingmodellingofnetworkimpactsandmanagementofthequeue.Capacityreleasedwillenablerevised(earlier)connectiondatestobeoffered.DistributionnetworksconnectionsGovernmentworkingwithEnergyNetworksAssociation,Ofgemandnetworkcompaniestoimprovethedistributionconnectionprocess.Implementationofshorter-termmeasuresfromApril2023OptimisingourelectricityinterconnectionwithneighboursIncreasinginterconnectionto18GWby2030Projectdevelopment,constructionandoperationofprojectsGovernmentaimtorealise–withOfgem,developersandEuropeanpartners-18GWofinterconnectionby2030.Buildingfirstmulti-purposeinterconnectorsOfgeminitialprojectapprovaldecisions.Projectdevelopmentofwindow3andMPIpilotprojects.Ongoingprojectdevelopment,constructionandoperationofprojectsPoweringUpBritain–EnergySecurityPlan79Hydrogen202320242025-302031-35OBJECTIVES•Ambitionsforupto10GWoflow-carbonhydrogenproductioncapacityby2030withatleasthalffromelectrolytichydrogen•Ambitionsforupto1GWofCCUS-enabledandupto1GWofelectrolyticproductioninoperationorconstructionby2025•HydrogenCertificationSchemesetupby2025•Businessmodelsforhydrogentransportandstoragedesignedby2025NetZeroHydrogenFundStrands1and2(providingdevelopmentandcapitalsupporttolow-carbonhydrogenproductionprojects)FirstfundingroundforStrands1and2(launchedin2022)GrantofferlettersissuedforsuccessfulapplicantsinQ12023CompleteStrand1fundedactivitiesbyMarch2024Strand2projectsoperationalfromMarch2025SecondfundingroundforStrands1and2LaunchinspringHydrogenallocationrounds(hydrogenproductionbusinessmodelandpossibleNZHFsupportforelectrolyticandpotentiallyothernon-CCUShydrogenproduction)Round1(launchedin2022)AimingforcontractstobeawardedinQ4Firstprojectsoperationalin2025,deliveringupto250megawattcapacityRound2IntentiontolaunchinQ4Aimtoawardcontractsofupto750megawattcapacityinearly2025AnnualallocationroundsAimtorunannualallocationrounds,movingtoprice-basedcompetitiveallocationinthemid-2020s,assoonaslegislationandmarketconditionsallowCCUS-enabledhydrogen"bluehydrogen"CCUSProgramme–Track-1BeginnegotiationswithshortlistofprojectsNegotiationsendProjectsoperationalfrommid2020s,deliveringupto1gigawattCCUSProgramme-Track-2LaunchprocessProjectsoperationalfrom2030sHydrogeneconomyCertificationGovernmentresponsetoconsultationonaLowCarbonHydrogenCertificationSchemeLaunchcertificationschemeby2025Hydrogentransport&storageGovernmentresponsetoconsultationonHydrogenTransport&StorageBusinessModelsQ2Designbusinessmodelsby2025HydrogenuseBlending:Policydecisionontheroleofblendingbytheendof2023.Power:Consultontheneedandpotentialdesignoptionsforamarketintervention.Heating:Decisionsontheroleofhydrogenforheatin2026PoweringUpBritain–EnergySecurityPlan80CarbonCapture,UsageandStorage202320242025-302031-35OBJECTIVES♦Deploy2industrialclustersbythemid2020s♦DeployatleastonepowerCCUSplantbythemid2020s♦Deploy4industrialclustersby2030♦Capture20-30mtCO2paby2030,including6mtCO2pafromIndustrialCCSby2030♦Deployatleast5mtCO2paofengineeredGHGremovals(GGRs)by2030♦50,000jobsenabledbyCCUSby2030ProgressingthroughtheTrack-1ClusterSequencingprocessandTrack-1expansionCCUSProgrammeTrack-1ProjectshortlistannouncedNegotiationswithprojectsstartFEEDworkcontinuesNegotiationswithprojectsendPublicationofCCUSNetworkCodesConstructionstartsTrack-1projectsoperationalTrack-1expansionLaunchTrack-1expansionprocessTrack-1expansionprojectsoperationalLaunchingTrack-2oftheCCUSprogrammeCCUSProgrammeTrack-2LaunchTrack-2processCompleteexpressionofinterestAnnouncenextstepsTrack-2projectsoperationalE02888043ISBN978-1-5286-4018-3

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