Department for Energy Security & Net Zero

The UK’s 2030 nationally determined contribution - to reduce economy-wide greenhouse gas emissions by at least 68% on 1990 levels – represents an increase in ambition on the UK’s fifth carbon budget, which covers the period 2028-2032. The UK will need to overachieve on the fifth carbon budget to meet the 2030 NDC and stay on track for the sixth carbon budget. In its advice to Government on the setting of the UK’s sixth carbon budget, the Climate Change Committee advised that it did not consider it necessary for Government to reset existing targets, and instead advised that once the 2030 NDC and sixth carbon budget were set on the path to net zero, that these would provide a clear target for UK emissions reductions.

The Lime Down Solar Farm is a Nationally Significant Infrastructure Project which is expected to be submitted to the Planning Inspectorate for examination in the third quarter of 2025. As part of the examination process the Examining Authority appointed by the Planning Inspectorate will consider the potential local ecological impact of the proposal as one of its potential impacts. At the end of the examination process, the Examining Authority will submit its Report to the Secretary of State, who will make his decision based on a careful consideration of all the material planning considerations.

The Department publishes estimates of the number of domestic properties not connected to the gas network in Great Britain by constituency. In 2023, an estimated 12,000 domestic properties (23%) in South Holland and The Deepings constituency were not connected to the gas network. Equivalent figures for the electricity network are not published.

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, including business consumers, permanently.

In the short term, the Government wants to provide businesses with better protection from being locked into expensive energy contracts and more redress when they have a complaint. We closed a consultation in November regarding the regulation of Third-Party Intermediaries (TPIs), such as energy brokers, aimed at enhancing consumer protections, particularly for non-domestic consumers. A government response will follow in due course once all feedback has been reviewed.

From 19 December 2024, Small and Medium Enterprises (SMEs) with fewer than 50 employees can now access free support to resolve issues with their energy supplier through the Energy Ombudsman. This means that 99% of UK businesses can now access this service, with outcomes ranging up to £20,000 in financial awards.

The Government recognises that some businesses may be struggling to pay their bills. These businesses should contact their supplier to discuss their options, including ‘blend and extend’ contracts, where the higher unit rate is blended with a new lower rate, spreading the cost over the course of a long contract.

Making Britain a clean energy superpower is one of the five missions of this Government, and oil and gas companies will have an important role to play in the energy transition.

We have begun the biggest ever investment in offshore wind and are moving ahead with new industries including carbon capture and storage, and hydrogen which will attract further private investment. A number of integrated energy companies already invest across a range of clean energy technologies in the UK and elsewhere. The department does not provide a commentary on these investments.

Through its investment and development activities, Great British Energy (GBE) will support companies to provide opportunities for high quality, well-paid work, in the projects the company supports, in supply chains and in local communities through the Local Power Plan. As an operationally independent company, GBE will choose the projects it supports across the UK. I am confident that the benefits will be felt in local and national economies, including our industrial heartlands. The decision to headquarter GBE in Aberdeen has already given confidence to industry, as Sarens PSG has announced the opening of a Centre of Excellence in Aberdeen that will train wind farm workers.

The current Warm Home Discount scheme period comes to an end in March 2026. Since the scheme began in 2011, over £4 billion has been provided in support to eligible households. The Warm Home Discount is expected to support over 3 million households in Great Britain over winter 2024/25, funded through a levy on all domestic gas and electricity customers. It remains an important support mechanism as energy bills remain high. We will consult later this year on the future of the scheme beyond 2026.

The Government has committed £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency. This includes £500 million of funding towards our new Warm Homes: Local Grant (WH:LG) which will provide support for low-income households living in privately owned EPC band D-G homes both on and off the gas grid in England. The WH:LG will be delivered from 2025 to 2028 by eligible local authorities.

Rural homes are also supported through current energy efficiency schemes including the Energy Company Obligation and Home Upgrade Grant.

The Government will assess the potential to drive the construction of solar canopies on outdoor carparks over a certain size through a call for evidence this year.

New standards will be introduced this year which will amend the energy efficiency standards in the Building Regulations in England. This will ensure all new homes and buildings, including warehouses and council-owned buildings, in England are zero-carbon ready.

Further details about how the Government will increase the deployment of solar panels will be set out in the forthcoming Solar Roadmap.

As a private transmission owner National Grid Electricity Transmission (NGET) develops project proposals in England and Wales where a transmission need is identified by the National Energy System Operator (NESO). In all proposals evidence demonstrating due consideration of alternative options is required. In this case proposals remain in early development.

NESO submitted proposals to Ofgem to reorder the connection queue, which would impact on generator connection agreements. Ofgem is expected to announce its decision in March.

All relevant information on the Morgan and Morecambe transmission assets can be found on the appropriate project page of the Planning Inspectorate website. The developers set out their proposals for a contingency fund to address temporary business disruptions caused by necessary construction works in their Development Consent Order Application documents.^[1]

^[1] https://infrastructure.planninginspectorate.gov.uk/wp-content/ipc/uploads/projects/EN020032/EN020032-000632-D1.1_MMTA_Annex%201%20Morgan%20Offshore%20Wind%20Limited%20Property%20Cost%20Estimate.pdf

The short pause on connection applications is a necessary, transitional step in delivering fundamental connections reforms that, if approved by Ofgem, could reduce the connections queue by up to half and will enable accelerated connections for many generation and demand projects. The pause does not apply to demand projects and therefore will not impact data centre or energy-intensive infrastructure projects.

Great British Nuclear purchased the Wylfa site in 2024, which is recorded as an asset on the Government's balance sheet. As part of its SMR competition, GBN is negotiating with four shortlisted companies, with final decisions to be taken in the spring. No decisions have yet been taken on projects or sites.

This information will be made publicly available the usual way through the Department's annual report and accounts.

As an open economy, we welcome foreign trade and investment where it supports growth and jobs in the UK and meets our legal and regulatory requirements. We work closely with industry to build secure supply chains and back UK businesses. The government has also established Great British Energy to drive forward greater investment in clean, home-grown energy production and to build supply chains across the UK. Great British Energy will work with DESNZ, The Crown Estate and the National Wealth Fund to support domestic clean energy supply chains.

This project was awarded through an open tender process, which concluded in November. As part of this process, the terms of reference for the project were publicly disclosed. Once the tender closed and had been awarded to the European Economic Research Limited, we published a Contract Award Notice, (CAN) on the government Contracts Finder website.

The provision of Free Allocation under the UK ETS mitigates the risk of carbon leakage and associated offshoring of emissions by reducing industrial sectors’ exposure to the carbon price. The UK ETS Authority is reviewing Free Allocation policy to ensure it targets sectors most at risk of carbon leakage and is currently consulting on this topic, including alignment with the UK Carbon Border Adjustment Mechanism.

The Authority will assess how Free Allocation interacts with other policies to ensure a holistic approach to carbon leakage mitigation. An Impact Assessment will be published alongside the Government Response to the Free Allocation Review

The Government is receptive to representations regarding the BCSSS. I recently met with the Trustees of the Scheme to discuss their proposals, and will be discussing the matter with the Treasury in due course.

The Department of Energy Security and Net Zero works closely with owners and operators of energy interconnectors to ensure their infrastructure is proportionately protected against a range of threats, including accidental damage or intentional sabotage. This includes working with industry to enhance the design of newbuild infrastructure and maintain the resilience of old infrastructure. We are also working to enhance the UK’s monitoring and detection capabilities, including by working with the Joint Maritime Security Centre to monitor activity around interconnectors, and strengthening information-sharing with our international partners.

The Department of Energy Security and Net Zero is working both across Whitehall and with energy owners, operators and regulators to ensure that offshore energy infrastructure is protected against hazards and malicious threats. This includes working with the Joint Maritime Security Centre (JMSC) since the Nord Stream incidents of 2022. The JMSC provide Government with real-time monitoring capabilities around offshore infrastructure in UK waters. By increasing our maritime domain awareness, we have a more comprehensive understanding of threats to this type of infrastructure and can take the necessary measures to enhance its security.

DESNZ defines critical systems as any function (an aggregation of operational technology, information and specific areas within a civil nuclear installation) that is critical to preventing the theft or sabotage of nuclear material.

Grid-scale battery energy storage systems (BESS) are regulated by the Health and Safety Executive within a robust framework which requires BESS designers, installers, and operators to take the necessary measures to ensure health and safety throughout all stages of the system’s construction, operation, and decommissioning.

BESS projects are considered by the local planning regime in England. The government has updated planning practice guidance to encourage BESS developers to engage with local fire and rescue services, and for local planning authorities to refer to guidance published by the National Fire Chiefs Council (NFCC). The NFCC’s current guidance proposes a minimum distance of 25 metres between BESS and occupied buildings.

The Government takes the protection of subsea seriously and is working across Whitehall to ensure it is protected against hazards or malicious threats.

Great Britain has a highly resilient and diverse energy network. We are confident that the gas and electricity system operators have the tools they need to effectively balance supply and demand in a wide range of scenarios.

This includes ensuring robust plans are in place to mitigate the impacts of a gas or electricity disruption as far as possible, in the event that they occur.

The Government takes the protection of subsea seriously and is working across Government to ensure it is protected against hazards or malicious threats. DESNZ has been working with the Joint Maritime Security Centre (JMSC) since the Nord Stream incidents of 2022, to enhance the security of subsea energy infrastructure. The JMSC is providing Government with real-time monitoring capabilities around UK offshore and subsea energy infrastructure.

This Government takes the protection of offshore infrastructure seriously and is committed to working internationally to ensure it is protected against hazards or malicious threats. DESNZ is working closely with international partners on energy security and crisis management. This includes regular engagement with multilateral institutions such as NATO.

DESNZ continues to drive international initiatives, including the signing of the North Sea Joint Declaration of Cooperation and the formalisation of the North Sea Gas Security Group. Working through these partnerships support us to understand respective threats, share situational awareness and strengthen our collective response to incidents impacting shared infrastructure.

Within DESNZ, I am responsible for the security of offshore energy infrastructure. DESNZ works closely with subsea and offshore owners, operators, regulators, and other stakeholders to ensure subsea and offshore energy infrastructure is proportionately protected against a range of threats. This includes working with industry to enhance the design of newbuild infrastructure, maintain the resilience of old infrastructure, and continue to develop the UK’s monitoring and detection capabilities. DESNZ has been working with the Joint Maritime Security Centre (JMSC) to enhance the security of subsea energy infrastructure.

The deployment of solar panels on commercial rooftops is central to our Clean Energy mission.

Permitted development rights allow most rooftop projects to be installed without requiring an application for planning permission. This includes non-domestic rooftop projects of any size, and solar canopies in off-street, non-domestic car parks.

New building standards will be introduced to ensure that all newly built commercial buildings are fit for a net zero future. We expect these standards to encourage the installation of solar panels on commercial roofs.

Further measures to incentivise installations on commercial rooftops remain under active consideration, including a call for evidence about increasing solar generation in car parks.

As part of the Warm Homes Plan, the Government is considering the role that finance may play in supporting homeowners with the upfront costs of energy efficiency improvements, solar panels, and installing low carbon heating.

Permitted development rights afford flexibilities and planning freedoms to new solar installations, whether residential, community or commercial. The Government also provides fiscal incentives to encourage businesses to install rooftop solar, through tax relief and business rate exemptions.

Data on the land occupied by solar projects is contained in the Renewable Energy Planning Database (REPD). The Government does not currently categorise the data based on land type. However, work is underway to expand the REPD to include this feature.

It is DESNZ policy to publish contracted technical work once it has been independently internally peer reviewed. We intend to similarly publish the report by European Economic Research Limited once it is completed in April.

The Government is supportive of electricity suppliers offering tariffs which enable consumers, including electric vehicle owners and those using solar panels, to consume energy at off peak times. This benefits all consumers by reducing the need for additional grid capacity.

More generally, we want to see the market offering new, innovative products and services that will help enable consumers to lower their bills, get a better service and support the transition to net zero. The setting of these tariffs is a commercial matter for suppliers.

Mandatory energy audits required under the Energy Savings Opportunity Scheme provide large businesses with cost-effective ways to save energy and reduce bills. Our Business Energy Advice Service pilot in the West Midlands is also delivering subsidised energy assessments and grant funding for energy efficiency measures to SMEs in the region and we are currently considering options for support for SME decarbonisation across England.

For households, the Government offers a digital service ‘Find Ways to Save Energy in your Home’ (www.gov.uk/improve-energy-efficiency) which provides tailored recommendations for home improvements to increase energy efficiency and clean heat. This service is complimented by our Energy Efficient Home website which supports consumers with wider information on energy saving tips and further investment (including grant opportunities) for energy efficient measures.

The UK has the oldest housing stock in Europe and the government recognises that there is no “one-size-fits-all" approach to tackle the UK’s diverse building stock, and the need to ensure more historic buildings are able to achieve Net Zero. The Department commissioned research into complex to decarbonise homes and is currently considering the findings available at: www.gov.uk/government/publications/defining-and-identifying-complex-to-decarbonise-homes.

Our Warm Homes Plan will help people find ways to save money on energy bills and transform our ageing building stock. We have committed £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency. Further details will be set out in due course.

The Government is receptive to representations regarding the BCSSS. I recently met with the Trustees of the Scheme to discuss their proposals, and will be discussing the matter with the Treasury in due course.

The Government is committed to accelerating the roll-out of charging infrastructure so that everyone, no matter where they live or work, can make the transition to an electric vehicle. As of 1^st of January 2025, the Government and industry have supported the installation of over 73,334 publicly available charging devices (including 14,448 rapid charging devices).

The matter is devolved to the Scottish Government. In England, the Government is also delivering the £381 million Local EV Infrastructure Fund which supports local authorities to work with industry to significantly transform the availability of affordable public chargepoints across the country, including in rural and remote areas. At least 100,000 new public charging points are planned to be installed in England by local authorities under the fund.

The Department for Energy Security and Net Zero has contracted European Economic Research Limited to analyse the future net energy demand of AI, with the project being due to be completed by April 2025. The National Electricity System Operator (NESO) is investigating the future power consumption of data centres, as well as grid constraints, lead times for developers, and how to improve connection processes.

Annex O of the Energy and Emission Projections presents Net Zero consistent scenarios for the power sector, including annual net imports. [1] (Gross imports and exports are not published). These scenarios indicate that the GB power sector will shift from being a net importer of electricity to a net exporter between 2030 and 2035.

[1] https://assets.publishing.service.gov.uk/media/6463addee140700013b6e048/annex-o-annex-j-all-power-producer-generation.ods

There are currently no plans to update Ecodesign regulations for circulator pumps. We are currently aligned with EU circulator regulations; however the Government will assess all new EU regulation on a case-by-case basis and will consider aligning where we see fit.

The Government will deliver an updated Carbon Budget Delivery that sets out the policy package out to the end of Carbon Budget 6 in 2037 for all the sectors, in due course. This will outline the policies and proposals needed to deliver carbon budgets 4-6 on a pathway to net zero.

Looking ahead, we will set Carbon Budget 7 by June 2026, in line with our statutory duties. This will set out the next phase of our pathway to net zero and policies to further decarbonise the UK economy.

The Government will deliver an updated Carbon Budget Delivery that sets out the policy package out to the end of Carbon Budget 6 in 2037 for all the sectors, in due course. This will outline the policies and proposals needed to deliver carbon budgets 4-6 on a pathway to net zero.

Looking ahead, we will set Carbon Budget 7 by June 2026, in line with our statutory duties. This will set out the next phase of our pathway to net zero and policies to further decarbonise the UK economy.

The UK’s 2030 NDC target – to reduce economy wide greenhouse gas emissions by at least 68% on 1990 levels – is a fair and ambitious contribution to global action on climate change, in line with the Paris Agreement temperature goal, and remains in place.

The National Energy System Operator (NESO) holds information required to balance the electricity network and are responsible for all operational actions required to maintain their electricity margin. Further information is available on the Elexon and NESO websites. As published in their winter outlook, NESO expect that supply margins will be adequate this winter, meaning that there is expected to be sufficient capacity to meet peak winter demand.

The Department of Energy Security and Net Zero has no role in these operational decisions but remains in close contact with NESO during periods of tight margins, like on Wednesday 8 January.

The National Energy System Operator (NESO) holds information required to balance the electricity network and are responsible for all operational actions required to maintain their electricity margin. Further information is available on the Elexon and NESO websites. As published in their winter outlook, NESO expect that supply margins will be adequate this winter, meaning that there is expected to be sufficient capacity to meet peak winter demand.

The Department of Energy Security and Net Zero has no role in these operational decisions but remains in close contact with NESO during periods of tight margins, like on Wednesday 8 January.

Arrangements for Great British Energy’s first board meeting are currently being made. The meeting will take place at the company’s headquarters in Aberdeen.