This year has seen a new government come to power, complete with arguably the most proactive energy secretary the Department for Energy Security and Net Zero (DESNZ) has seen in well over a decade, the first Labour Autumn budget in close to 15 years, and a slew of major approvals for large scale energy projects. But what does the energy sector predict that 2025 will bring? We asked industry experts to peer into their crystal balls and tell us what they think the new year has in store.
Planning permission changes ahead, and red tape to be cut
In recent weeks, calls for input have been launched into land use rights for renewable energy projects, triggering conversations about the planning consent process in the UK as it currently stands. Of the experts Current± spoke to, many see this being a continuing topic of discussion, and several more very much hope it will continue in order to speed the renewable energy rollout.
Craig Shields, managing director of renewable energy advisory service Procure Smart, said: “In the commercial energy world, I think it’s a safe bet that there will be much more discourse between suppliers, Ofgem, the government and other market players on the best way to increase transparency, fairness and consistency.
“More generally, the government will continue to remove red tape around the installation of renewables. Hopefully this means the trend of increased commercial uptake continues; and we see businesses improving their overall energy strategies. EV infrastructure must continue to improve, so I wouldn’t be surprised to see investment in this area increase.”
Vish Sharma, head of power purchase agreements at nPower Business Solutions, a firm which specialises in power purchase agreements (PPAs) for businesses, agreed that cutting red tape in 2025 is vital for the net zero transition, especially in regards to independent energy generators. Sharma commented: “In our recent report, we surveyed 350 of the UK’s independent generators, who told us their wishlist for the government in 2025 – reduce red tape, increase funding support and develop the PPA market. The Clean Power Action Plan goes some way to addressing this, but more still needs to be done.
“If this happens, then I truly believe that 2025 could be the start of a ‘golden age’ for independent generation.”
EV infrastructure
Ian Mach, CEO of EV charging infrastructure startup Charge Gully and the subject of a Current± Disruptors story earlier this year, believes that local authorities will use 2025 to change policies surrounding home EV charging, specifically cross-pavement solutions like Charge Gully’s.
Mach said: “2025 is poised to be a big year for cross-pavement charging solutions, a vital innovation enabling residents without driveways to charge their electric vehicles affordably and conveniently at home. Currently, many local authorities are holding off on implementation and are awaiting official government guidance. With this guidance expected to be issued soon, we anticipate a nationwide rollout next year.”
Storage assets and flexibility increasingly important
This year, battery energy storage systems (BESS) truly proved their worth, as they jumped in to save the day when a major interconnector failure sent the UK’s grid frequency plummeting. Industry experts agree that BESS assets will become ever more important as the transition to renewable energy increases the variability of power generation in 2025 and beyond.
Christopher Dalley, director of wholesale market services at EDF stated: “Over the next five years, the amount of wind and solar power in the UK is expected to triple and the surge in electrification of transport and heating will place additional demands on the system. This is where flexibility becomes crucial. Batteries can store excess renewable energy and return it to the system at times of high demand, while also connecting to different markets to help keep the energy system stable.
“We, therefore, welcome the government’s commitment to publish a joint Low Carbon Flexibility Roadmap with Ofgem and NESO in 2025. It is crucial this plan sets out clear milestones and specific policy measures for both clean power in 2030 and net zero by 2050.”
Andreas Gandolfo, strategy manager at BESS developer Pulse Clean Energy, predicts that more and more BESS projects will begin development in the coming months and years, owing to declining manufacturing costs. Gandolfo noted: “If things continue, the falling costs of BESS equipment from China should enable significantly more projects to be viable even at depressed volatility. With the net zero deadline of 2030 fast approaching, and governments realising that low carbon electricity systems are both cheaper and more reliable, we expect to see continued push to grow wind and solar and reduce fossil fuel use.
“In some countries, such as the UK, Germany, and the Nordics, the share of renewables is reaching high enough levels to suggest we could see volatility rise to significant levels in the coming 12 months, independent of what power/gas prices do. This will be good news for BESS, which depend on this volatility to make their fundamental business case.”
Clean Energy 2030 will be a major focus
Almost everyone we spoke to made reference to NESO’s Clean Energy 2030 strategy, with most expecting it to be the primary focus of much of the industry in 2025 and beyond. Neil Brooks, managing director of BESS developer Root-Power, noted that while the strategy was undoubtedly a positive thing, NESO, Ofgem and the government must focus on clarifying the timelines and processes for the strategy in order to ensure its success.
Brooks said: “In 2025, developments in the UK energy industry will be dominated by the development and implementation of NESO’s Clean Energy 2030 strategy. In principle, the strategy is aligned with what the sector has been calling for over many years, and it follows the ambitious targets set by the new Labour government to deliver a renewable future.
“However, the timing and processes for implementing this strategy remain undefined. This may impact investor confidence in the sector for the short term, despite the long-term message being a positive one”.
PPAs, grid-forming capabilities, and more
EDF’s Dalley believes that PPAs and corporate PPAs will continue to grow in importance in 2025 and onwards, noting: “The demand for Corporate Power Purchase Agreements (CPPA) also continues to grow as businesses explore innovative pathways to achieve net zero goals. Consequently, CPPAs will remain a vital market opportunity for renewable energy developers, alongside Contracts for Difference (CfDs) which also play a key role in supporting renewable energy growth targets. With such large renewable generation rollout requirements, the success of CfD Allocation Round 7 in 2025, and future iterations, are crucial for meeting 2030 clean power targets.”
Meanwhile, Mark Babcock, chief revenue officer at energy storage solutions provider Powin, believes that grid-forming capabilities are the most vital part of 2025’s net zero progress. He noted: “The UK’s path to a net-zero grid requires energy storage solutions that do more than meet today’s demands—they must also anticipate the needs of tomorrow. Grid-forming capabilities are essential for ensuring grid stability, resilience, and flexibility as renewable penetration increases.
“While the market offers a growing number of low-cost options, there is a clear need to invest in high-quality, enduring infrastructure assets that can provide advanced grid support services. Future-proofing these assets now, even if it comes at a slightly higher upfront cost, is critical to unlocking long-term value. Grid-forming solutions will play a key role in stabilizing the power system and ensuring it evolves in step with the energy transition.”
Phil Thompson, CEO of clean energy generator Balance Power, believes we need to take a holistic approach to ensure our clean energy ambitions continue on the right track in 2025.
He stated: “To stay on track for net zero goals, 2025 must also be the year we go beyond grid reform and address other crucial enablers. This includes unlocking behind-the-meter generation to empower businesses to generate their own clean energy and decarbonise their operations. It also means bolstering the planning system, with the addition of significantly more planning officers to accelerate project approvals and boost investor confidence, and increasing public engagement efforts to build support for these developments.
“By building on the lessons learnt this year, 2025 could be a pivotal year for driving meaningful progress towards a cleaner, more resilient energy future.”
