Weekly highlights

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The Lexis+® UK Energy team produces a weekly roundup of key current awareness and legal updates. Given the frequency and volume of new law and policy that

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Latest Energy News

UKIFS announces £2.5bn funding commitment for world’s first prototype fusion power plant

UK Industrial Fusion Solutions (UKIFS) has announced an additional £2.5bn in funding for the Spherical Tokamak for Energy Production (STEP) programme, aimed at developing the world’s first prototype fusion power plant. The facility will be constructed at the site of the former West Burton A coal-fired power station near Retford and Gainsborough, and is expected to be operational by 2040. STEP operates by fusing the hydrogen gases—deuterium and tritium—which are heated to over 150 million ˚C and confined within a magnetic field. The resulting energy will be used to produce steam, which will turn a turbine to generate electricity.

Energy weekly highlights—12 June 2025

This week's edition of Energy weekly highlights includes coverage of important nuclear energy announcements by the Department for Energy Security and Net Zero (DESNZ) and HM Treasury (HMT), with: (1) £14.2bn being invested by government towards the construction of Sizewell C; and (2) the selection of Rolls-Royce SMR Ltd as the preferred bidder to partner with Great British Energy - Nuclear (GBE-N) (formerly Great British Nuclear) to develop the UK's first fleet of nuclear small modular reactors (SMRs). We also cover a section 35 direction, issued by the Secretary of State (SoS) pursuant to under the Planning Act 2008 (PA 2008), for the Humber Hydrogen Pipeline project, confirming that this early hydrogen transport project will be consented through the Development Consent Order (DCO) route. In addition this week, the National Energy System Operator (NESO) published its timeline for implementing the TMO4+ grid connections reform process across 2025–26, aimed at providing developers with greater clarity on the forthcoming timetable. Finally, we have published a News Analysis on the key energy and environment funding announcements made in the Spending Review 2025, introduced to Parliament on 11 June 2025.

Ofgem publishes decision on Capacity Market rule change proposals

Ofgem has published its decision on five Capacity Market (CM) rule change proposals—CP371, CP376, CP377, CP378, CP381—following its January 2025 consultation. Ofgem approved three proposals with no or only minor alterations: CP376 (Clarifying Restrictions on the Role of Agent); CP377 (Increasing Flexibility for Satisfactory Performance Day Portfolios) and CP381 (Change to the definition of Station Connection Entry Capacity in Rule 3.5.5). It also approved CP371 (Protection from Very Late Network Connections) with significant alterations, and rejected CP378 (Removing 50MW Limit on Individual CM Units in a Portfolio). The approved changes will take effect once laid before Parliament, ahead of the 2025 Prequalification Window.

Spending Review 2025—Key Energy and Environment announcements

Energy and Environment analysis: On 11 June 2025, the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, presented to Parliament the government’s Spending Review 2025 (SR25). This News Analysis focuses on announcements and commitments relevant to the energy and environment sectors.

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