NESO’s Clean Power 2030 Advice to the UK government

This report is NESO’s first since its establishment, in its capacity as a strategic advisor to the Government and Ofgem. To achieve clean power by 2030, a once in a generation shift in approach and in the pace of delivery is required. NESO’s analysis, gives confidence that the step up can be made.

The pipeline of projects exists, the necessary network expansion has begun, the system would be secure and operable, and the technologies are available at reasonable cost. It will not be easy, but the foundations are in place. Reaching clean power by 2030 would restore Great Britain’s access to homegrown resources for electricity generation and support the wider push towards net zero by 2050.
 

DESNZ – Clean power 2030 Action Plan: A new era of clean electricity

The age of clean electricity is about harnessing the power of Britain’s natural resources. This action plan will provide the foundation for the UK  to build an energy system that can bring down bills for households and businesses for good. It sets out how the government will work with the clean power sector, including industry, trade unions, investors, policy makers and others to achieve our clean power goal. 

Offshore Wind
The government is taking significant steps to enhance the Contracts for Difference (CfD) scheme, aiming to secure at least 12 GW of offshore wind capacity across the next two to three allocation rounds (AR7, AR8, and potentially AR9). Key policy changes include relaxing CfD eligibility criteria for fixed-bottom offshore wind projects, allowing participation before full planning consents are obtained. This shift will enable earlier CfD awards in the development cycle. Additionally, an auction schedule with clear capacity ambitions and a review of auction parameters will improve transparency and predictability. Changes to CfD contract terms, such as extending the current 15-year term, are also under consideration to provide longer market certainty and reduce project costs.

Transmission Network: Addressing Volatility and Uncertainty
Stakeholders have highlighted the need to address volatility and long-term uncertainty from Transmission Network Use of System (TNUoS) Charges. Ofgem has proposed a temporary cap and floor to alleviate concerns, with changes potentially implemented for the 2026 auction prequalification window.
 

On 15 April 2025, we also heard of Ofgem’s decision to approve the proposals for the major overhaul of the grid connections process. the energy regulator Ofgem approved our proposals for a major overhaul of the grid connections process in Great Britain. This decision by Ofgem concludes a lengthy and intensive period of policy development, led by NESO in collaboration with industry.

Grid connections for businesses that will deliver clean energy prioritised. Currently companies are waiting up to 15 years to be connected to the grid leaving promising businesses ‘grid-locked’, and over the last 5 years, the grid connection queue has grown tenfold. So-called ‘zombie’ projects will no longer hold up the queue for connection to the electricity grid to prioritise businesses that will drive growth and deliver energy security.    

These reforms will transform connections from being a barrier to an enabler of the wider economy. Getting spades in the ground, pushing “ready” projects to the front of the queue, will drive economic growth and facilitate clean power by 2030. 
 

Ofgem’s decision on connections reform package  

DESNZ’s press release on the decision  

Reforming connections to unlock Great Britain’s economic growth and clean power potential

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