Energy Buzz: Clean Power 2030

The UK government has set out an “action plan” for reaching its target of clean power by 2030, outlining how the government hopes to deliver on its one of its key manifesto "missions" to deliver zero-carbon electricity for 100% of the UK's electricity demand by 2030. This goal is based on research and advice from the National Energy System Operator (NESO).

The plan sees wind and solar becoming the backbone of the British electricity system. If the goal for clean energy is met, unabated fossil fuels would make up less than 5% of generation, with wind and solar making up around 80% of the mix.  This would require record amounts of new renewable capacity, alongside reforms to the planning process and major grid enhancements.

The plan aims to unlock extra investments worth £40bn each year to 2030, delivering “reindustrialisation”, jobs, lower bills and energy security. In order to bridge gaps in wind and solar output, almost all of the country’s existing gas-fired power stations will remain open for the rest of the decade (until alternative low-carbon sources of flexibility become more widely available).

An additional 12GW of power from offshore wind projects is required by 2030, and at least an additional 8GW of onshore wind and 22GW of solar.  Given the long timelines for new offshore wind projects, the targets will need to be met by projects that are already or at least part-way through the planning process.  This means that the next two "contract for difference" (CfD) auctions (to be held in 2025 and 2026) will need to secure the majority of the additional offshore wind capacity required for 2030.

In addition to building that new capacity, reforms are required to the planning system, the grid connection process, the capacity market and the electricity market.

To enhance the grid, the Government plans to:

• reform the current “first come, first served” process for grid connection, by filtering the queue and prioritising connections for strategically important plans. This will involve considering technological and locational factors, removing unviable projects, re-ordering the queue and accelerating connection timescales; 
• encourage renewable projects to connect to the lower-voltage local distribution systems, instead of the high-voltage national transmission grid; and 
• work with Ofgem to develop a new incentive structure for network operators, for the delivery of faster connection times for strategically important infrastructure.

The government plans to introduce planning reform legislation in spring 2025.  This follows the government lifting the ten year de-facto ban on onshore wind in England, and approving three large solar farms, all within weeks of taking office.

To secure at least 12GW of new offshore wind projects over the next two allocation rounds, a number of changes to the CfD auctions will be introduced ahead of the seventh auction round in 2025.  The changes include: allowing onshore wind farms that are “repowering” – meaning replacing old turbines as they retire with newer models, extending the “phasing” process for floating offshore wind, streamlining the appeals process ahead of the auction, and relaxing the CfD eligibility criteria for fixed-bottom offshore wind projects to allow projects to bid even if they have not obtained full planning consent.

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Authored by Amy Cleaves and Inga Aryanova.