Parliament passed the UK’s Planning and Infrastructure Act 2025 at the end of last year. This new legislation is designed to speed up how we get new infrastructure approved and built. It aims to cut red tape, update outdated rules and help deliver government goals like the Clean Power 2030 targets. For the energy sector, the Act promises faster consents for big projects, smarter grid connections, and new support for energy storage.
Key Changes in the Planning and Infrastructure Act 2025
Faster consenting for Nationally Significant Infrastructure Projects (NSIPs)
The Act reforms the process for NSIPs, very large projects (e.g. wind farms, transmission lines, etc) that need a Government Development Consent Order. It cuts down the lengthy pre application process. For example, it removes several statutory consultation duties, potentially halving the two-year pre-application period. This should help major energy projects avoid years of delay. The government says these changes will “speed up and streamline” delivery of clean energy and transport infrastructure.
Smarter grid connections
The Act supports ongoing electricity connections reform. It shifts the system to a “first ready, first connected” model – meaning shovel-ready projects get priority over speculative. Powers in the Act allow the connection queue to prioritise projects that best fit Britain’s clean energy plans. This should unlock bottlenecks where clean energy infrastructure have been stuck waiting for a grid connection. The Goverment suggests these reforms could cut billions from system costs by bringing more generation and storage online faster.
Easier EV charger roll-out
The law makes installing electric vehicle charge-points smoother. It streamlines permitting and changes the Highways Act so local authorities can’t block installation without good reason. This means new public chargers can be installed more quickly and at a lower cost, helping Britain meet its clean transport goals.
Offshore wind commissioning
The Act also supports the development of offshore wind projects. It extends the allowed “generator commissioning” period from 18 to 27 months, reducing risk of delays as massive capacity wind farms start up.
Nature and planning
A big environmental change is the new Nature Restoration Fund, which lets developers pool money to fund habitat improvements. This will streamline work supporting protected species and areas while allowing clean infrastructure development to proceed.
In short, the Act’s planning reforms mean shorter, more predictable decisions for large energy projects. As Energy UK put it, this shift will “support the delivery of growth, jobs and skills” and “bolster Great Britain’s energy security”.
Long-Duration Energy Storage (LDES)
A centerpiece of the Act for the energy sector is its support for long-duration energy storage (LDES).
Under the Act, the government “enshrines in law” a new mechanism to support LDES development, imposing a duty on Ofgem to run its cap-and-floor funding scheme for LDES projects. This is similar to the support used for offshore interconnectors and under development for hydrogen. In effect, the government will guarantee a minimum revenue (the “floor”) to give investors confidence, while capping excessive profits and returning them to consumers. This ensures investors can cover costs even if market prices are low, without guaranteeing windfall gains.
This scheme is designed to de-risk large storage projects and spur investment. Long-duration storage investment in the UK has lagged for decades. In fact, it’s over 40 years since a major new site was commissioned. The Act’s framework should change that.
With the cap-and-floor scheme law in place, Ofgem opened the first application window in April 2025 and plans to select projects by summer 2026.
Storelectric submitted an application to this framework earlier this year. Our Compressed Air Energy Storage (CAES) project, TeesCAES, successfully passed the eligibility assessment stage of Ofgem’s Cap and Floor Regime. Of 171 applicants, 77 will proceed to the project assessment phase. TeesCAES is the only CAES project advancing to stage 2.
Overall, the Act’s LDES measures mean long-duration storage is finally supported at scale in UK legislation.
What this means for 2026
Overall, the Planning and Infrastructure Act 2025 is designed to clear planning hurdles and help deliver the government’s energy strategy. For renewable developers, it should accelerate construction timelines while ensuring projects meet updated policy and support their local communities. For grid operators and planners, it modernises the system. And for LDES projects, it provides the first tangible example of market support in decades.
