Renewable heat and gas subsidies and transport fuel subsidies

Introduction

This is an overview of the key content to be found in our Renewable heat and gas subsidies and transport fuel subsidies subtopic. It briefly explains the nature of this content and provides links to it.

For more information on our other content of relevance to renewable energy projects generating/producing heat or renewable gas (biomethane), see our subtopic: Fuelled renewable, hydro and other baseload renewable projects.

For more information on our other content of relevance to heat networks, see our subtopic: Private wire and district heating.

For more information on our other content of relevance to alternative fuels for transport and electronic vehicles, see subtopic: Alternative fuels for transport and e-mobility.

Renewable Heat Incentive (RHI) and Renewable Transport Fuel Obligation (RTFO)

Practice Note: Renewable Heat Incentive (domestic). This Practice Note considers the key features of the domestic RHI scheme, which closed to new applicants on 31 March 2022, and briefly introduces

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Latest Energy News

Ofgem launches consultation on LDES financial framework for cap and floor regime

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HM Treasury unveils ten-year Infrastructure Strategy with £725bn clean energy investment plan

HM Treasury, in partnership with the National Infrastructure and Service Transformation Authority (NISTA) and the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, has unveiled a landmark ten-year Infrastructure Strategy as part of the Plan for Change. This detailed strategy commits at least £725bn to infrastructure investment through to 2035, with the dual aim of establishing the UK as a clean energy superpower and providing long-term investment certainty. It outlines aggressive 2030 clean power targets of 43–50 gigawatts (GW) offshore wind, 27–29 GW onshore wind, and 45–47 GW solar capacity, while allocating £9.4bn for carbon capture, usage and storage projects and £500m for hydrogen transport infrastructure. In addition, the strategy sets aside £14.2bn for the development of Sizewell C and £2.5bn for small modular reactor programmes, with Great British Energy set to invest £8.3bn in clean power projects, including £300m for offshore wind supply chains.

Council agrees position on two-year delay to EU battery due diligence rules

The Council of the EU has approved a position to postpone battery due diligence obligations under Regulation (EU) 2023/1542 by two years, from 18 August 2025 to 18 August 2027. The proposal, part of the Commission's Omnibus IV simplification package, also changes reporting requirements from annual to three-yearly intervals. The Commission will publish due diligence guidelines one year before obligations take effect. The Council presidency will now enter negotiations with the European Parliament to finalise the agreement.

Commission launches Citizens Energy Package consultation with 12-week deadline

The European Commission's Directorate-General for Energy has launched a public consultation and call for evidence on the proposed Citizens Energy Package, which aims to accelerate clean energy transition while ensuring consumer protection. The package builds on the Clean Industrial Deal and Affordable Energy Action Plan, focusing on energy poverty, coal region decarbonisation and consumer empowerment. The Commission plans to table a Communication on the package by end-2025, following input from stakeholders through multiple channels including the Citizens Energy Forum and Regulatory Round Table. The consultation closes on 11 September 2025.