Issue 01: The E&U Review - 16.06.2025

Editor's Note

Good morning, E&U Crew,

Welcome to this week’s edition of the E&U Review, dated 16 June 2025. As the UK’s energy landscape rapidly evolves, keeping pace with the latest developments is more important than ever. This week, we shine a spotlight on a brewing dispute between offshore wind giants over wake effect compensation, a critical issue that could impact the future of renewable energy collaboration and investment. Join us as we unpack the details behind this clash, its potential implications for the sector, and what it means for the broader push toward a cleaner, more resilient energy system. Let’s dive in.

UK schools adopt solar panels, saving energy costs ⚡️

TL;DR:

Great British Energy has begun installing solar panels on 11 schools, aiming to save £175,000 annually and support UK net zero goals through a £180 million government clean energy initiative.

Why Should you Care?:

Installing solar panels in schools cuts energy costs significantly, boosts energy independence, and supports local economies. This initiative accelerates the UK’s clean energy transition, reduces reliance on fossil fuels, and helps public institutions save millions, advancing sustainability and resilience amid rising global energy prices.

Overview:

  • Great British Energy launched rooftop solar panels on 11 schools, part of a £180 million government clean energy initiative.

  • The first schools are expected to save £175,000 annually, with potential £400 million lifetime savings over 30 years.

  • Only 20% of UK schools currently have solar panels, despite possible savings of up to £25,000 yearly with battery storage.

  • The rollout improves energy security, reduces bills, supports local economies, and advances the UK’s net zero goals.

Thames Water executives received bonuses despite government rescue 💧

TL;DR:

Thames Water paid £18.5m in bonuses to senior managers despite a £3bn government bailout, sparking MPs' calls to claw back payments and tighten oversight to restore public trust.

Why Should you Care?:

The payment of large bonuses amid a government bailout undermines public trust and highlights gaps in regulatory oversight. It signals the need for stronger enforcement to ensure public funds support service improvement, not executive rewards, especially in essential utilities like water.

Overview:

  • Thames Water paid £18.5m in bonuses to 21 senior managers despite a £3bn government rescue loan.

  • Chair Sir Adrian Montague confirmed top executives like CEO and CFO did not receive initial bonus payments.

  • MPs question if these bonuses violate government bans and if regulators were properly informed.

  • The controversy raises concerns about public trust and may prompt stricter oversight of water company bonuses.

Zonal pricing cuts industrial power costs, saves millions ⚡️

TL;DR:

Zonal pricing in Britain could cut industrial electricity costs by up to £29/MWh, saving manufacturers millions annually without raising household bills, boosting competitiveness and supporting energy-intensive industries.

Why Should you Care?:

Introducing zonal pricing can save billions for UK industries, preserving jobs and investment without raising household bills. This fairer, region-based system strengthens industrial competitiveness and supports critical sectors like manufacturing and data centres amid rising energy costs.

Overview:

  • Zonal pricing could reduce industrial electricity costs by £12-29/MWh, benefiting manufacturers and data centres significantly.

  • Energy-intensive businesses in regions like Hull and Scotland could save millions annually under zonal pricing.

  • The reform aims to lower costs at the source without increasing household energy bills, supporting fairer pricing.

  • Industry groups and regulators back zonal pricing to maintain UK competitiveness and encourage investment in key sectors.

UK invests £14.2B in Sizewell C, Rolls-Royce SMRs ⚡

TL;DR:

The UK government invests £14.2 billion in Sizewell C nuclear plant and selects Rolls-Royce SMRs, creating thousands of jobs and boosting clean energy, regional economies, and national energy security.

Why Should you Care?:

The UK’s £14.2 billion nuclear investment and Rolls-Royce SMR partnership signal a major shift toward reliable, low-carbon energy, creating thousands of jobs and revitalising local economies. This commitment strengthens energy security and supports the UK’s net-zero goals amid aging nuclear infrastructure.

Overview:

  • UK government commits £14.2 billion to build Sizewell C, the largest nuclear project in a generation.

  • Sizewell C construction employs 10,000 workers at peak and has awarded £330 million to local suppliers.

  • Rolls-Royce SMR chosen as preferred partner to develop small modular reactors for clean energy future.

  • Investments aim to boost jobs, regional economies, and secure affordable, low-carbon energy for millions.

NESO reforms UK grid connections, prioritises viable projects ⚡

TL;DR:

NESO begins July 8 collecting project evidence to reform UK grid connections, removing inactive projects and prioritising viable ones, accelerating renewable integration and supporting net zero goals by 2050.

Why Should you Care?:

NESO’s reforms will clear the grid connection backlog, accelerating renewable energy deployment crucial for UK’s net zero goals. By prioritising viable projects and cutting delays, these changes can reduce costs and boost clean power delivery, but success depends on developer cooperation and modernised planning frameworks.

Overview:

  • NESO will start accepting evidence from projects on 8 July to assess maturity and readiness for grid connection reform.

  • Over 3,000 projects in the queue will be reorganised, with new connection agreements issued in autumn prioritising viable projects.

  • The reforms aim to remove inactive 'zombie' projects, speeding renewable energy integration and supporting UK net zero targets.

  • Collaboration with developers and modernising planning processes are key to reducing delays and lowering consumer costs.

Sense launches smart EV charging load management system ⚡🚗

TL;DR:

Sense’s new load management system uses smart meters to help utilities monitor and control home EV charging, reducing grid strain and encouraging consumer participation in demand flexibility programs.

Why Should you Care?:

As residential EV adoption grows, Sense’s load management system enables utilities to prevent grid overloads by managing charging demand in real time. This fosters smarter energy use, supports grid stability, and encourages consumer participation, accelerating the transition to sustainable, resilient, and efficient electric transportation infrastructure.

Overview:

  • Sense’s new load management system uses AMI 2.0 smart meters to monitor and control home EV charging in real time.

  • Utilities can enroll consumers in managed charging programs to reduce grid overload from increasing residential EV demand.

  • The platform provides consumers with energy usage feedback, encouraging participation in demand flexibility and managed charging.

  • Partnerships like Eaton and AMP IT SA demonstrate growing trends in integrated, service-based EV charging infrastructure management.

UK pioneers 3D printed low-carbon substation foundations ⚡️

TL;DR:

Hyperion Robotics and UK National Grid partner to 3D print low-carbon substation foundations, cutting concrete use and emissions, funded by Ofgem, advancing UK grid modernisation and sustainability goals.

Why Should you Care?:

This pioneering 3D printed foundation project could revolutionise UK energy infrastructure by significantly cutting carbon emissions and material use, supporting urgent grid modernisation and decarbonisation goals. It sets a scalable, sustainable benchmark that may accelerate low-carbon construction globally while enhancing grid resilience.

Overview:

  • Hyperion Robotics and UK National Grid collaborate to develop 3D printed low-carbon substation foundations.

  • The new foundations reduce concrete use by 700 tons and cut carbon emissions by over 300 tons in ten years.

  • Funded by Ofgem’s Network Innovation Allowance, the project is the UK’s first trial of 3D printed energy infrastructure.

  • This initiative supports UK grid modernisation and decarbonisation, aiming to improve sustainability and resilience.

UK shifts £2.5B from GB Energy to nuclear ⚡️

TL;DR:

UK boosts energy funding to £12.6B, reallocates £2.5B from GB Energy to nuclear SMRs, scraps Rapid Charging Fund for broader EV infrastructure, and invests heavily in hydrogen, housing, and transport decarbonisation.

Why Should you Care?:

The UK’s shift of £2.5 billion from GB Energy to nuclear and scrapping of the Rapid Charging Fund signals a strategic pivot prioritising nuclear and hydrogen over renewables and targeted EV support, impacting clean energy balance and raising concerns about the pace and reliability of transport decarbonisation infrastructure.

Overview:

  • The UK government increased DESNZ funding by 16% to £12.6 billion but redirected £2.5 billion from GB Energy to nuclear SMRs.

  • GB Energy’s total capitalisation is £8.3 billion by 2030, with £500 million for hydrogen infrastructure and £14.2 billion for Sizewell C.

  • The Rapid Charging Fund was scrapped, replaced by a £400 million broader EV charging infrastructure allocation, causing mixed industry reactions.

  • The Warm Homes Plan received £13.2 billion, emphasising energy efficiency, while transport decarbonisation funding totals £2.6 billion.

Yorkshire Water declares drought, urges urgent water savings 💧

TL;DR:

Yorkshire Water declared a drought as reservoirs dropped to 62.3%, urging urgent water savings amid high demand and dry conditions, deploying extra staff to fix leaks and prevent usage restrictions.

Why Should you Care?:

The drought declaration reveals how climate extremes threaten water security, emphasising urgent conservation and infrastructure repair. Public cooperation is critical to prevent restrictions, while the situation highlights the need for long-term resilience planning as changing weather patterns increasingly stress essential water resources.

Overview:

  • Yorkshire Water declared a drought as reservoir levels fell to 62.3%, well below the 85.5% seasonal average.

  • One of the driest, warmest springs since 1884 caused rainfall to be only 62% of the June average.

  • Water demand remains high at 1.3 billion litres daily despite recent rain and customer conservation efforts.

  • Additional staff deployed to fix leaks; public urged to save water to avoid potential usage restrictions.

Offshore wind giants clash over wake effect compensation ⚡️

TL;DR:

RWE, Orsted, and SSE clash over wake effect-related wind theft claims at Dogger Bank and Hornsea, debating compensation for lost energy, impacting offshore wind project economics and future industry cooperation.

Why Should you Care?:

As offshore wind scales up, disputes over wake effects threaten collaboration and investment. How these conflicts are resolved will shape industry rules, influence project viability, and determine the pace of renewable energy growth critical for meeting climate goals.

Overview:

  • Major offshore wind developers RWE, Orsted, and SSE dispute alleged wind theft due to wake effects.

  • Wake effects reduce wind availability, causing conflicts over compensation for lost energy production.

  • RWE opposes large payment demands, highlighting challenges in quantifying and attributing wake losses.

  • Resolution will impact offshore wind project planning, regulation, and industry cooperation moving forward.

And Finally? The UK's water industry is one of the nation's most energy-intensive sectors, using an estimated 3% of all UK electricity consumption to treat and pump water to our homes and businesses. This single use is enough to power over 3 million households for a year.

Till next week,

The E&U Review Team