Market Intelligence

CMP470 proposes a new Oversubscribed Technologies Commitment Fee mechanism to address the significant oversupply of Battery Energy Storage System projects in Great Britain's electricity grid connection queue. The modification introduces escalating security requirements and cancellation charges designed to encourage less viable projects to exit the queue earlier, potentially reshaping the landscape for energy storage developers seeking grid connections.

The energy sector faces rapid transformation driven by technological innovation, regulatory reform and evolving policy priorities. This newsletter examines critical developments in energy infrastructure procurement, data centre connections, heat network policy reforms, and strategic decarbonisation partnerships across the UK's renewable energy and resource management landscape.

Ofgem has launched a consultation on draft licence conditions for Competitively Appointed Transmission Owners (CATOs), introducing an Early Competition model for developing onshore transmission assets. The proposed regulatory framework governs CATOs across the full project lifecycle, from design and construction through to operation and eventual decommissioning.

The UK renewable energy sector achieved a milestone in 2025 with renewables generating 44% of electricity, while wind power maintains its position as the dominant renewable source. Following a comprehensive market review, the government has decided to retain a unified national electricity pricing system rather than adopting zonal pricing. New regulatory reforms targeting grid connections and the Planning and Infrastructure Act 2025 are designed to accelerate project development by reducing approval delays.

Prime Minister Andy Burnham's latest announcement for the creation of Great British Grid seeks to address the transmission capacity shortcomings currently facing the grid.

The nuclear sector requires approximately $6 trillion in investment by 2050 to triple global capacity, yet capital deployment remains constrained despite technological advances and political support. This analysis examines why investor confidence hinges not on reactor innovation alone, but on regulatory certainty, risk allocation frameworks, and integrated project delivery models that can convert ambitious nuclear programmes into bankable infrastructure.