UK Government Unveils Battery Strategy as Part of Energy Transition Plan
The UK is making significant strides in its transition towards a net-zero carbon future, with the government's battery and offshore wind strategies taking centre stage.
In a recent announcement, RenewableUK CEO, Dan McGrail, highlighted that the Industrial Growth Plan (IGP) will outline strategies for capturing value across the lifecycle and steer investment into critical areas. The strategy aims to reduce the reliance on imports, particularly from China, and supports economic prosperity and the net zero transition.
The UK’s battery strategy, unveiled in December 2023, has made substantial progress. Battery energy storage systems (BESS) are now recognized as crucial for balancing variable renewable generation from wind and solar, storing excess electricity when supply exceeds demand and releasing it when needed. The government’s Clean Power 2030 Action Plan projects the need for 23–27 GW of battery storage capacity by 2030, a significant increase from about 4.5 GW in 2024.
The battery strategy includes strong government support and private sector investment. For instance, Pulse Clean Energy secured a £220 million private green loan in 2025 to advance battery storage infrastructure. This financing shift indicates the maturation of the battery storage market into a commercially scalable sector.
Simultaneously, the offshore wind sector is also seeing growth. The Offshore Wind Industry Council published a report in September stating that there was a £92 billion opportunity for the UK economy if the UK's offshore wind capacity and expertise could be sufficiently developed. A new partnership has been announced to develop a UK offshore wind Industrial Growth Plan (IGP), to be published early next year. KPMG has been appointed to support the development of this plan.
The IGP is intended to build on the UK's existing competitive advantage in the offshore wind sector and encourage the investment needed to drive innovation. The strategy was developed in conjunction with the UK Battery Strategy Taskforce.
In other developments, the National Grid Electricity Distribution (NGED) has launched a new reporting tool, ClearViewConnect, to give customers a high-level view of connection costs and timelines for Grid Supply Points (GSPs). This tool aims to reduce grid connection wait times.
The UK government's broader industrial policies, such as the Modern Industrial Strategy 2025 and the British Industry Supercharger Package, also aim to reduce electricity costs and enhance industrial competitiveness, indirectly supporting battery and low-carbon infrastructure development.
The government has also announced an overarching strategy for achieving a globally competitive battery supply chain by 2030, investing £2 billion into new capital and research and development across the electric vehicle and battery sectors, including their supply chains.
The Demand Flexibility Service (DFS), approved by Ofgem earlier this year, is planned to run 12 incentivized test events for consumers and businesses to participate in. The ESO has triggered its first DFS event of the year, reducing demand by approximately 550MW.
Further funding will be injected over the next five years. This includes a £38 million upgrade to the UK Battery Industrialisation Centre and a further £12 million for a new Advanced Materials Battery Industrialisation Centre. Additionally, £11 million will be allocated between 20 competition winners which have proposed technological advancements across all stages of the supply chain.
These strategic initiatives reflect the UK's commitment to a sustainable, low-carbon future, supporting the integration of renewable energy, reducing carbon emissions, lowering system costs, and stimulating domestic manufacturing in low-carbon technologies.
- The Industry Growth Plan (IGP) will not only outline strategies for capturing value across the lifecycle of various industries but will also steer investment into critical areas such as finance, energy, and technology, which are crucial for the UK's transition towards a net-zero carbon future.
- The UK's offshore wind strategy has identified a £92 billion opportunity for the UK economy, particularly in the finance and technology sectors, if the UK's offshore wind capacity and expertise could be sufficiently developed, as indicated in the report published by the Offshore Wind Industry Council.
