We have seen continued momentum across solar and wind, alongside growing interest in wind farm extensions, repowering, behind the meter renewables and hybrid energy park schemes. Meanwhile the Governments Clean Power 2030 Action Plan (CP30 Plan) and connections reform has impacted the battery storage market, but long duration energy storage schemes are now being pursued. The biggest constraint for projects remains – securing grid capacity at a viable cost within reasonable timeframes, and the CP30 Plan and the proposed Spatial Energy Plans are driving a more strategic, location-specific market.
Grid reform is reshaping what is viable
Connections reform has now reached full momentum. The National Energy System Operator (NESO) and Ofgem’s programme is designed to tackle a queue that has grown far beyond what is needed to meet national targets, moving away from “first come, first connected” towards a system that prioritises projects that are demonstrably ready and aligned with system need. Ofgem’s TMO4+ decision confirmed the direction of travel and set out how gated processes and new methodologies will be implemented.
For landowners and developers, the implications are immediate. Grid capacity can no longer be secured without an applicant demonstrating that they are both ‘ready’ (advanced land rights/planning) and ‘needed’ (aligned with CP2030). Projects must apply during specific, scheduled windows rather than on a rolling basis, and in order to engage NESO or the Distribution Network Operator, for developer led schemes on landowners’ properties, Letters of Authority are now required which include basic Heads of Terms. In order to satisfy the Gate 2 criteria, applicants are required to demonstrate a) secured land rights in the form of either: an Option agreement with the landowner (minimum three year term and the lease or purchase agreement must reflect the typical minimum operational timeline); evidence of existing ownership; or an existing land lease, or b) to have submitted (and had validated) an application for planning consent. This is alongside meeting at least one of the Gate 2 Strategic Alignment Criteria, aligned with the pathways within the CP30 Plan.
England, Scotland and Wales are presenting different opportunities
The key takeaways from the first round of Gate 2 results in December 2025 illustrate the diverging dynamics between technologies, and across the UK.
Around 283GW of generation and storage, along with 99GW of transmission connected demand were successful in obtaining Gate 2 status. The pipeline split was 132GW of capacity to be delivered in Phase 1 (up to 2030) and 151GW of capacity in Phase 2 (2031 to 2035). Over 200GW of projects received ‘Gate 1’ offers, effectively setting them aside as they did not meet the new readiness criteria.
In Scotland, onshore wind capacity is fully subscribed up to the 2035 target, while headroom remains in England and Wales, with England in particular being a key focus for developers due to the removal of the defacto ban and onshore wind being undersupplied relative to targets. However, lower wind speeds and the greater extent of residential development constrain new projects. The next application window, anticipated end of Q2 2026, will allow for ‘ready’ projects in England & Wales but only ‘protected’ projects in Scotland.
In the case of solar, the results indicate that most regions are oversupplied against 2035 targets. However, pockets of headroom remain in specific areas such as in Northern England, Southwest England, and South Wales and the Severn.
For hybrid projects, there were some instances where battery storage was co-located with generation, and the battery storage received a Gate 2 offer whilst the generation project received Gate 1, complicating project viability. There has been a move to cut hybrid battery storage alongside proposed solar farms to curtail overcapacity, and with standalone battery storage there is a significant oversupply of capacity, with only protected projects receiving Gate 2 status.
Renewables remain the future, but delivery will be targeted
Whilst CP30 and connections reform is rapidly changing the renewables outlook in the UK, delivery of renewable energy remains essential for energy security and affordability. Renewables already supply around half of the UK’s electricity annually, and the transition to a cleaner, more decentralised energy system remains a priority.
Wind power will continue to dominate the renewable energy mix. New onshore wind farm schemes and project extensions are being progressed across the UK, with an increased focus on repowering, particularly in Scotland. There is continued Government support for solar farm deployment as well, with changes to planning policy placing more significant weight to renewable generation benefits, reducing barriers to both onshore wind and solar development. Battery storage will be key alongside renewables to support system flexibility, and long duration energy storage is anticipated to be a new area of focus for battery storage developers. On-site, behind the meter and private wire renewables schemes continue to be a key area of growth, with a focus on delivering power locally where there is high energy use. For landowners, opportunities remain but as connections reform places more onerous obligations on applicants there is an increased need to be selective in choosing a developer partner and ensure that the necessary landowner safeguards are drafted into the agreements. For landowner led projects, early feasibility work is key.
Grid delivery remains the long-term enabler
Connections reform will help to prioritise viable projects, but the delivery of schemes still depends on substantial modernisation and upgrade of the UK grid network. NESO is carrying out the largest overhaul of the UK grid network in decades, which includes network reinforcements and new grid infrastructure countrywide. However, delivery timelines remain exposed to planning complexity, public inquiry risk and construction sequencing. This matters for landowners directly where land is needed for grid infrastructure, and indirectly as delivery timelines determine when capacity becomes available.
The planning framework is guided by the Energy National Policy Statements (NPS) (EN-1 to EN-5), which provide the policy basis for decision-making. An update to the overarching Energy NPS EN-1 came into force in January 2026. EN-1 now formally embeds the CP30 mission, which targets 95% clean electricity by 2030 and aligns the planning system with accelerated decarbonisation. It also strengthens the need case for energy infrastructure, requiring decision makers to give substantial weight to the need for energy projects, aligning need with both net zero and energy security requirements. These updated principles reflect the Government’s renewed commitment to accelerating build out.
How does this impact rural landowners
Landowners can still unlock significant long-term value from renewable energy and grid-related projects, but an even more strategic approach is required than before. There is a need to carefully consider project and grid viability, and timescales for delivery. Landowners should seek proper advice when considering project feasibility and approaches from both developers and incumbent tenants, and understand that their land holds significant value to the realisation of both new and repowering projects.be.
Renewable energy remains a powerful driver of rural investment and long-term income diversification. But the sector continues to be shaped as much by the grid as by planning policy, and in turn politics. The landowners who succeed will be those who proactively pursue opportunities and seek to market their land to secure the best terms and developer partner, understand the connections landscape, build credible project delivery pathways, and align opportunities with CP30 and the upcoming SSEP and Regional Energy Strategic Plans.
