Department for Energy Security & Net Zero

We are working as quickly as possible to understand what we can do to support investors interested in developing projects at Grangemouth, including what policy or regulatory support is needed to enable investment. The inaugural Grangemouth Investment Taskforce, jointly chaired by the HMG and the Scottish government took place on May 21, 2025, to drive forward potential investment propositions.

The National Wealth Fund stands ready, and we encourage investors to come forward to join us in this major opportunity to secure a long-term industrial future in Grangemouth.

My Rt. Hon. Friend the Secretary of State for Energy Security and Net Zero engages regularly with international counterparts on a number of issues.

My Rt. Hon. Friend the Secretary of State for Energy Security and Net Zero engages regularly with international counterparts on a number of issues.

The Government does not enter into agreements with other governments on the supply of biomass for UK power generation. Rather, it sets sustainability criteria which must be met for generation to be eligible for subsidy, and it is for individual generators to determine how and where to source material to meet these requirements.

Biomass generators are required to submit monthly sustainability data and annual audit reports from an independent verifier under existing subsidy arrangements. These data returns are scrutinised by Ofgem, and include compliance with land and GHG greenhouse gas (GHG) emission criteria, volume of biomass, fuel name, fuel type and voluntary certification scheme used. This applies to biomass sourced from the UK, US or any other nation.

At the announcement of the new Heads of Terms with Drax on 10 February, we made clear that sustainability assurance arrangements for future large-scale generation will be strengthened further. We are working closely with expert bodies including Ofgem, LCCC and SBP to enhance reporting, ensuring best practice in sustainability and land use.

All biomass pellets for UK generation, regardless of country of origin, must meet supply chain emissions thresholds; these have been tightened further to 36.6 gCO₂eq/MJ in the Heads of Terms agreed with Drax and announced on 10 February.

It is for generators to determine how and where to source compliant sustainable biomass pellets to meet the required volumes of generation.

Existing sustainability requirements for current subsidy arrangements include robust land-use criteria to ensure biomass is sourced from sustainably managed forests. This includes requirements around sustainable harvesting and biodiversity protection. Ofgem, as the independent energy regulator, is responsible for monitoring profiling data on land criteria and enforcing wider sustainability standards.

To further reduce the risk of wood pellets being sourced from environmentally significant areas, we will be excluding material sourced from primary and old growth forest from being eligible for subsidy under the proposed Heads of Terms with Drax announced on the 10^th February.

The government sets robust supply chain emissions thresholds as part of the sustainability criteria for large-scale biomass generation. Shipping, and all other transport, emissions are included in that requirement. As announced on 10 February, the supply chain emissions threshold for eligible large scale biomass generators is proposed to be tightened further under proposed arrangements with Drax, from 55.6 gCO₂e/MJ to 36.6 gCO₂e/MJ.

It is for individual generators to determine how and where to source sufficient, eligible material to meet the requirements set out by government.

The government only supports the use of sustainable biomass, and generators only receive subsidies for biomass that meets our robust sustainability criteria. Domestically sourced and imported wood pellets, regardless of the country of origin, are subject to the sustainability requirements in the current subsidy arrangements for biomass generators, which include supply chain emission thresholds and land-use criteria.

Data from the National Energy System Operator (NESO) shows there were 1759 renewable energy projects in the transmission queue at the end of March 2025.

We are committed to supporting UK industry to decarbonise, protecting thousands of jobs in regions across the UK and enabling the country to take advantage of new opportunities that can promote growth and wealth creation. We will bring forward a clear plan for industrial decarbonisation. A renewed Industrial Decarbonisation Strategy will set the strategic direction for our approach to working with industry towards a competitive and low carbon industrial base in the UK, ensuring growth opportunities are captured in tandem with emissions reductions.

The Government does not hold data on the average monetary or environmental cost of producing and installing an electricity pylon. Such assessments are undertaken by the relevant planning applicant and considered as part of the decision-making process by the Secretary of State. A wide range of context specific, qualitative and quantitative factors determine said value.

The environmental impact of proposed pylon developments is assessed on a scheme-by-scheme basis with the method, content and scope of assessment dependent on the likely significance of the proposed scheme’s environmental impact based on its size, nature, location and the relevant legislative and policy frameworks.

Government works closely with the National Energy System Operator to analyse where the energy we need will come from over the short, medium and long-term and to assess a range of factors that could affect our supplies. This enables early action and decisions to ensure we can meet demand. Energy security and resilience is maintained through a diverse mix of sources.

The Capacity Market is Government’s main tool for security of electricity supply, ensuring the electricity capacity required to meet peak demand for businesses and households is met for up to four years ahead of its use.

All appointments were direct appointments, based on Great British Energy’s (GBE) set-up phase needs.

All appointees have declared their interests to the Department as part of the appointment process. The Department and GBE are both committed to transparent and accountable governance and will publish expectations to this end in GBE's framework document later this year.

The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently.

The creation of Great British Energy will help us to harness clean energy with less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030.

Companies in the ceramics sector are eligible to apply to the British Industry Supercharger scheme, which has provided energy bill support to hundreds of firms in energy intensive sectors. Financial relief to support energy intensive industries with electricity costs is worth £470 million per year through a mixture of spending and bill discounts.

I meet frequently with representatives of the ceramics sector to discuss challenges faced by manufacturers, including high energy costs. Government is committed to continuing to listen and engage with the sector.

The Department is not aware of a list of RTS properties that separately identifies premises with and without storage heaters.

Details of Ministers’ meetings with external individuals and organisations are published quarterly in arrears on GOV.UK. Published declarations include the purpose of the meeting and the names of any additional external organisations or individuals in attendance.

Nuclear is a key part of the government's national mission to be a clean energy superpower. The government believes that Advanced Nuclear Technologies (ANTs) could play an important role in helping the UK achieve energy security and clean power while securing thousands of good, skilled jobs.

DESNZ is aware of and monitors the progress of a wide range of advanced reactors in design development by companies around the world, including Thorium Molten Salt reactors.

On 15^th May 2025 NESO published their methodology for the Strategic Spatial Energy Plan (SSEP), which includes details of how they will identify optimal locations, types and quantities of energy generation and storage infrastructure.

This can be found on the NESO website https://www.neso.energy/news/milestone-reached-first-blueprint-great-britains-future-energy-infrastructure .

DESNZ is committed to supporting our colleagues in line with our DESNZ Values and the Civil Service Equality, Diversity and Inclusion Expenditure Guidance. The Anti-Islamophobia Working Group provided a one-hour training and awareness session in this Department in November 2024.

The Department works continually with Ofgem and the National Cyber Security Centre to ensure that regulations continue to capture the most critical operators of energy generation systems. Distributed and smaller-scale generation are key components of a smart and resilient energy system.

Great Britain has a highly resilient energy system, and a total failure of power is assessed in the National Risk Register as a high impact but low likelihood event. In its 75-year history, the National Electricity Transmission System has never experienced a complete shutdown.

The National Energy System Operator (NESO) has a range of tools to keep electricity balanced under a range of scenarios and to guard against system-wide failures. However, Government prepares for all eventualities and exercises robust contingency plans with industry, including NESO’s established plans to restore the energy system in the event of a National Power Outage.

Legislation and guidance are already in place to help businesses and contracting authorities to oversee supply chains. Further information on the actions needed to develop sustainable supply chains will be set out in the Solar Roadmap, due to be published shortly.

The Government is committed to eradicating forced labour in supply chains, and we expect solar developers to do everything in their power to remove any instances of it that they find.

Legislation and guidance are already in place to help businesses take action against modern slavery. However, we are working across government to see where we can go further, keeping all potential policy options under review.

We are closely monitoring the industry-led supply chain assurance scheme, the Solar Stewardship Initiative. Further information on the actions needed to develop supply chains that are resilient and free from forced labour will be set out in the Solar Roadmap, to be published shortly.

The solar market is mature, and Britain has a healthy pipeline of projects in development. The Clean Power Action Plan calls for the rapid acceleration of solar deployment, from around 18GW at present to 45-47GW by 2030. Large solar projects are supported under the Contracts for Difference scheme and the Government is pursuing reforms to grid connections and the planning system to support deployment. Further actions for government and industry will be published shortly in the Solar Roadmap.

The Department for Energy Security and Net Zero will shortly launch a Talent Strategy in which apprenticeships play a central role in building the delivery capability DESNZ needs to be a mission-focused department. The department has a well-established apprenticeship offer, with around 84 apprentices currently in post.

As part of the Talent Strategy, we will increase the range and number of apprenticeships we offer by:

• launching a social mobility apprenticeship programme, focused on supporting actively unemployed individuals into employment through apprenticeships

• increasing opportunities for school leavers, including participating in the new Careers Launch Apprenticeship programme
• expanding the apprenticeship offer by procuring new contracts in priority capability areas

The Department has a core apprenticeship offer available to all staff and continues to onboard apprentices through centralised programmes run by the Civil Service Apprenticeship Unit and other initiatives. DESNZ is committed to creating early career opportunities for both current and new apprentices.

The UK follows the agreed international approach for estimating and reporting greenhouse gas emissions, under the UN Framework Convention on Climate Change and the Paris Agreement, which is for countries to report emissions produced within their territories.

The Department for Environment, Food and Rural Affairs publishes consumption-based emissions statistics, including emissions from imported goods and services, which can be found here: Carbon footprint for the UK and England to 2022 - GOV.UK. The latest data show that emissions associated with goods and services imported from China were 85 MtCO2e in 2022, however this is not broken down by product type.

I can confirm that seventeen vacant posts have been advertised by Great British Energy either on or after 1st April 2025. The Great British Energy Bill received Royal Assent on 15th May 2025 which allows the company to now move forward with the set-up in Aberdeen including workforce planning.

The Government is committed to accelerating to net zero, delivering clean power by 2030, and to restoring nature.

Through the cross-government Marine Spatial Prioritisation Programme (MSPri), the Department is engaging across government and with marine users to improve its understanding of future demands and identify opportunities for greater co-location.

The Department is working with Defra to bring together its ministerial colleagues, who share responsibilities for marine sectors, to discuss how best to consider wider demands on the seabed as we develop future offshore wind.

The Government is considering reforms through the Review of Electricity Market Arrangements (REMA) to transition to a secure and decarbonised electricity system at lowest cost and pass through the benefits of cheaper renewables to consumers.

We will provide an update in due course.

Figures for the historic electricity generation mix supplied to the grid in Great Britain are available on NESO’s data portal.

The Department also publishes quarterly data on the total electricity supply in the UK by fuel in Energy Trends Table 5.1. This includes production from major power producers and other generators (mainly combined heat and power plants serving industrial and other users). As these data include electricity generated and consumed on-site, coverage is broader than electricity supplied to the grid.

Great Britain has a highly resilient energy system, and a total failure of power supplies is assessed in the National Risk Register as a high impact but low likelihood event. In its 75-year history, the National Electricity Transmission System has never experienced a complete shutdown.

As a responsible Government we prepare for all eventualities and work closely with industry to prepare for and exercise robust contingency plans. This includes the National Electricity System Operator’s established plans to restore the energy system in the event of a National Power Outage as set out in the Electricity System Restoration Standard.

We remain committed to having the supplementary Environmental Impact Assessment guidance in place as soon as possible and are cognisant of its importance for providing certainty to the offshore oil and gas industry. We needed to take the time to analyse the consultation responses thoroughly and to reflect them in the finalised guidance which must be robust. Once the guidance is published, assessments of environmental statements can resume.

Great British Energy is initially headquartered in DESNZ’s second headquarters in Aberdeen, Crimon Place, to ensure the organisation can get to work as quickly as possible. As a Government Property Agency (GPA) onboarded department, DESNZ is pursuing property options through the GPA. Due to the commercial sensitivity of any lease negotiations, specific details or timescales cannot be provided at this time.

In 2023, the Department co-funded a study with the Northeast Local Enterprise Partnership on the UK’s deep geothermal potential. Based on its recommendations, the British Geological Survey was commissioned to develop the UK Geothermal Platform—an open-access, web-based tool launching in summer 2025 to help developers and investors identify geothermal opportunities and conduct pre-feasibility assessments. Further research on the levelised costs of geothermal heat and power will also be published in summer 2025. The UK government continues to engage with the geothermal sector, academia, and international partners to improve understanding of geothermal energy’s role in achieving net zero.

Geothermal energy is a clean energy source and therefore falls within the group of technologies that are included within Great British Energy’s (GBE) remit, as set out in the GBE Bill.

The Secretary of State will prepare a Statement of Strategic Priorities (SSP) for GBE within six months of the date the Bill comes into force. The SSP will steer GBE on its approach to future investments.

The Government recognises that risk mitigation schemes have helped develop the geothermal industry in some parts of Europe. It is considered premature to introduce a dedicated risk mitigation scheme at this time, given the current stage of development in the UK, associated costs, and funding priorities.

This conclusion was informed by discussions on the role that these mechanisms fulfil in encouraging deep geothermal investment. Experts, including those from France and the International Energy Agency were consulted. We continue to monitor and engage with the market and experts.

The Government supports geothermal energy through multiple schemes and integrated projects can receive funding from more than one at a time. For example, United Downs in Cornwall will produce heat and was awarded a contract for difference to produce electricity. Automotive Transformation Fund has provided funding to support R&D into UK Lithium extraction and refining including in Cornwall. The Green Heat Network Fund can also support geothermal heat. Cornwall Council secured £22 Million for Langarth District Geothermal Heat Network. There are no plans to integrate schemes as there are few operational or planned commercial projects combining heat, power, and mineral production.

Language service needs and spend are assessed to ensure these services offer good value for money for taxpayers while maintaining high standards of service delivery.

DESNZ is introducing heat network regulation which aims to provide consumers with comparable protections to existing gas and electricity regulations.

This new regulatory framework was signed into law earlier this year, establishing Ofgem as the market regulator with consumer interests as its highest priority.

When Ofgem formally commence this role in January 2026, they will require suppliers to institute protections for vulnerable consumers and will have powers to collect pricing data, conduct investigations into instances of disproportionately high prices, and intervene when there is sufficient evidence. They will also establish guaranteed standards of performance to ensure that a minimum quality of service is provided.

The Boiler Upgrade Scheme (BUS) provides grants to property owners to enable them to transition away from fossil fuel to low carbon heating. The grant available under the scheme for air source heat pumps and ground source heat pumps is £7,500, and £5,000 is available for biomass boilers. Funding for the BUS has increased to £295 million for this financial year.

The Warm Homes: Local Grant (WH:LG) and Warm Homes: Social Housing Fund (WH:SHF) provides funding to support low carbon heating, including heat pumps, and the installation of energy efficiency measures.

The grants are in addition to the 0% rate of VAT on the installation of heat pumps and biomass boilers, which will last until March 2027.

Drones are useful in inspecting energy infrastructure such as offshore wind turbines and overhead electrification lines which are difficult to reach using other means. As part of DESNZ’s Net Zero Innovation Programme, we have funded UK companies looking to develop drones for these types of inspections.

The Government wants to provide all businesses with better protection from being locked into unfair and expensive energy contracts, and more redress when they have a complaint.

Last year, the Government launched a consultation on introducing regulation of Third-Party Intermediaries (TPIs), such as energy brokers. This is aimed at enhancing consumer protections, particularly for non-domestic consumers. The consultation has now closed, and a Government response will follow in due course once all feedback has been reviewed.

The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently. This, combined with our Warm Homes Plan to upgrade millions of homes to make them warmer and cheaper to run is how we will drive down energy bills and make cold homes a thing of the past.

We recognise that we need to support households struggling with bills whilst we transition to clean power by 2030. This is why we delivered the Warm Home Discount to around 3 million eligible low-income households last winter. On 25 February, we published a consultation on the expansion of the Warm Home Discount, giving more eligible households £150 off their energy bills. These proposals would bring around 2.7 million households into the scheme – pushing the total number of households that would receive the discount next winter up to around 6 million. The consultation has now closed, and the Department is evaluating the responses.

The Government is continuing to work with Ofgem and energy suppliers to ensure energy bills remain fair and affordable while we transition to clean power by 2030.