Below we summarise some of the key energy policies announced following the election and what they could mean for the future of the UK energy system.

Unlocking onshore wind

Within days of the election, the Chancellor announced plans for radical planning reform, including fulfilling the promise to lift the de facto ban on new onshore wind farms in England. As one of the cheapest and cleanest ways to produce electricity, it means onshore wind will no longer face unique planning restrictions and instead be treated the same as any other infrastructure projects – something we have been calling for since 2015. In order to scale up onshore wind in line with targets, the government has also announced the creation of an Onshore Wind Industry Taskforce, which will see it work collaboratively with the industry, regulatory and other relevant bodies to help overcome the barrier developers are currently facing.

It’s worth noting that the removal of the ban doesn’t mean new onshore wind farms will be popping up everywhere. New developments will need to undergo the usual planning process and delays with grid connection are still a major challenge. It is, however, a huge stride forward and we see great potential for the repowering of existing sites – replacing turbines that have come to the end of their life with more modern and efficient machines – which could go a long way in meeting the government’s 2030 targets, without increasing the total number of turbines.

Planning reform

After announcing plans for radical planning reform that would make building energy infrastructure easier, the government launched a new consultation: ‘Proposed reforms to the National Planning Policy Framework and other changes to the planning system’.

Suggested amendments to the existing National Planning Policy Framework (NPPF) include instructing planning officers and local authorities to consider the benefits of renewable projects, as well as an expectation that they will proactively identify potential project sites when developing plans. The aim is that these changes will help establish a much stronger presumption in favour of approving new renewables projects, supporting the UK’s ambitious net zero goals.

As well as removing the ban on onshore wind, Labour has challenged the previous government’s decision to add a separate footnote to the NPPF giving more consideration to the availability of agricultural land when making planning decisions on new solar farms.

Great British Energy

A key part of Labour’s election manifesto was its plans for Great British Energy (GBE), a publicly owned energy company designed to drive clean energy deployment. GBE will work with and alongside the private sector to develop, own and operate clean energy assets with ambitions to double onshore wind, triple solar power, and quadruple offshore wind by 2030.

While we wait to see how exactly GBE will interact with the industry, we’re hopeful that this renewed focus on working together – alongside communities – is what is needed to decarbonise our energy system.

Local power plan

Recognising that local power generation is an essential part of the energy mix, GBE will also help the government to deliver on its Local Power Plan, enabling local authorities and communities to become owners and stakeholders in local clean energy projects.

In GBE’s Founding Statement, it states that ‘through partnering with and providing funding and support to Local and Combined Authorities and Community Energy Groups, the Local Power Plan will roll out small and medium scale renewable energy projects, using established technologies to develop up to 8G W of cheaper, cleaner power. This will include shared ownership projects in partnership with private developers.’

As big supporters of community energy, it’s positive to see legislation that prioritises local people, ensuring they will ‘benefit directly’ from any increase in generation. Thrive will continue working with community energy groups, helping them build and own projects – giving local people a chance to benefit socially and financially from renewables.

Rooftop solar revolution

As part of its ambition to triple solar power by 2030, the Government has outlined plans for a rooftop solar “revolution”, introducing measures that will help more homes to be fitted with solar panels to bring down domestic energy bills and tackle the climate crisis.

We recognise the importance of rooftop solar when it comes to decarbonising the UK’s energy system and have already invested just over £3 million in rooftop solar arrays for businesses across the country. Not only does this help them to lower the carbon intensity of their operations but means they can directly benefit from cheaper clean power generated on site. We see this as a key technology as we continue our diversification strategy, investing in a range of renewable assets that will work together.

Contracts for Difference

A significant jump in the budget for the next Contracts for Difference (CfD) allocation round has also been announced, increasing from £1 billion to over £1.5 billion.

CfD auctions incentivise investment in energy generation projects which have a high upfront cost, by guaranteeing stable prices over a long period. It’s positive to see the uplift in funding, with £185 million of the total budget allocated to established technologies such as onshore wind and solar, up from £65 million in round five.

We believe that smaller (sub 5MW), localised clean energy projects are also important, which means developers will need to continue seeking additional routes to market. At Thrive, we also work with other business models, such as corporate power purchase agreements or ‘direct wire’ arrangements where solar and wind projects are installed on site, providing the industrial host with a direct supply of clean electricity.

Building on a series of positive announcements from government, we have and will always prioritise action – doing what’s necessary to get new projects built. We’ll also continue working with industry bodies such as RenewableUK to help inform and steer policy so that it ensures people are at the heart of a cleaner, fairer energy system in the UK.