UK Parliament Presents Bill for Energy Transition Planning and Infrastructure Development
The UK government is pushing forward with a series of reforms aimed at streamlining the electricity consenting process in Scotland, while ensuring local communities are consulted at an early stage. These reforms include introducing pre-application consultation, notification, and publication of planning applications, encouraging collaboration with statutory consultees, reducing the number of objections, implementing a prescribed process for varying consents, and the ability to charge network operator fees for applications for necessary wayleaves.
Simultaneously, the UK's Long Duration Electricity Storage (LDES) cap and floor scheme is in an advanced consultation and application phase. This framework, designed to support large-scale, long-duration energy storage projects critical to the country's clean power transition by 2030, uses a cap and floor financial model to stabilize revenues for LDES projects, incentivizing investment while controlling costs to consumers.
The LDES scheme, which was detailed in a joint Technical Decision Document (TDD) by Ofgem and DESNZ in March 2025, has already seen significant activity. Over 170 LDES projects had submitted applications by July 2025, including large battery storage projects seeking cap and floor support. Ofgem opened the first application window for LDES projects to apply for cap and floor support in April 2025, and has since launched consultations on the project assessment methodology, financial framework, and related policies.
The scheme, which aligns with NESO’s Clean Power 2030 strategy, highlights LDES as fundamental to the UK’s 2030 net-zero energy goals. Notably, NESO awarded 10 contracts in a scheme worth £323 million, seeking to secure 11.55 GVA of "short circuit level" in Scotland and 6.75 GVA seconds of inertia for Great Britain. The Blackhillock grid-forming battery site alone is estimated to lower consumer bills by over £170 million over 15 years.
Meanwhile, the five grid-forming battery sites, including Blackhillock, are the first of their kind, designed to provide both short circuit level and inertia to Great Britain's electricity system. These batteries will increase the capacity for renewable energy generation, reducing carbon emissions and securing the future resilience of the electricity network.
The government's response to a consultation on electricity infrastructure consenting in Scotland was issued on 10 March 2025, signalling a commitment to making the process more efficient. The T-4 auction, aimed at securing a larger capacity of 43,700 MW, saw 43,055.073 MW successfully procured. However, the clearing price for this year's T-4 auction was £60.00 per kW per year, higher than the T-1 auction's record low clearing price of £20.00 per kW per year.
In summary, the LDES cap and floor scheme is now in an advanced consultation and application phase, with final project selections and regulatory confirmations expected by mid-2026. This framework, along with the reforms in Scotland's electricity consenting process, aims to support the deployment of long duration storage assets that can balance the grid and enhance system flexibility over multi-hour periods, a key enabler of the UK's clean energy transition.
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The UK government's electricity consenting process reforms and the advanced LDES cap and floor scheme both play significant roles in the UK's clean energy transition. The LDES scheme, designed to support renewable-energy projects, uses finance to stabilize revenues for large-scale, long-duration energy storage projects, thereby encouraging investment in the industry and reducing energy costs for consumers.
