UK’s clean-power transition depends on grid connections and market reform

UK's clean-power transition depends on grid connections and market reform

While the UK is moving into a ‘infrastructure-intensive phase’ when it comes to renewables, this expansion will depend on faster grid connections, reinforced transmission and market reforms to be truly effective, GlobalData has said.

According to a new report by GlobalData, UK Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035, the UK’s installed power capacity is set to almost double between 2025 and 2035.

By the end of the forecast period, renewables are set to account for 73% of the generation fleet, led by the expansion of offshore wind, solar PV, and onshore wind, it noted.

Offshore wind

“Offshore wind is central to the UK’s clean power strategy,” commented Attaurrahman Ojindaram Saibasan, power analyst at GlobalData. “The project pipeline includes large North Sea developments and the ScotWind leasing round, while annual Contracts for Difference (CFD) auctions continue to provide the principal route to market for large-scale renewable projects.

“However, project awards alone will not ensure delivery. Developers require timely connections, supply-chain capacity, and a market framework that reflects the changing value of power by location and time of day.”

According to GlobalData, a significant share of the UK’s renewable pipeline is seeking access to networks that already face connection queues, while the addition of new offshore generation will require expanded transmission links.

The National Energy System Operator, transmission owners and Ofgem are pursuing reforms designed to accelerate strategic network investment and improve the connections process.

“The UK has a strong foundation for a high-renewables system: a mature CFD mechanism, deep offshore wind resources, extensive interconnection, and a competitive retail market,” Saibasan added. “Yet the next stage of the transition requires the network to become more anticipatory. Transmission, distribution capacity, storage, demand response, and digital flexibility must develop alongside generation rather than after it.”

Interconnected network

GlobalData added that the UK’s electricity network is one of the most interconnected in Europe – with links to France, the Netherlands, Belgium, Norway, Denmark and Ireland – which can support security of supply and balance renewable generation across markets.

Investment through the end of the decade is expected to focus on offshore wind and nuclear alongside solar, onshore wind, grid infrastructure and flexibility assets, it noted.

“The UK’s challenge is no longer setting clean-power ambitions; it is converting an extensive development pipeline into operating assets,” said Saibasan. “Success will depend on synchronising renewable deployment with grid expansion, flexible capacity, and reforms that maintain the investment case for low-carbon generation.” Read more here.

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