The heatwaves being experienced in the UK and across Europe have shown the reality of intense and frequent extreme weather events. With increased demand for air conditioning due to this extreme weather meaning a ‘summer energy poverty crisis’ across Europe has become a real concern¹, it’s clear that the UK transition to renewable energy sources and continued investment in climate resilience remains essential. 

In the past month, amidst leadership change, we’ve seen the UK Government outline their plans to accelerate electrification as part of achieving their Seventh Carbon Budget. We’ve also seen the Science Based Targets initiative (SBTi) release their Corporate Net-Zero Standard V2.0, to support businesses in setting credible targets in line with the latest climate science and implement their transition to net zero.

Read more about these updates, alongside other news in renewable energy and sustainability, in this month’s Bryt Insight.

Throughout June, long-term wholesale electricity prices saw a decline, following the agreement of a peace deal for the Israel/US-Iran conflict. This peace deal has meant that the region’s Liquefied Natural Gas (LNG) supply is expected to become more available soon, and this potential increased availability drove down long-term prices.

As a result, coal, gas and carbon prices have also decreased, because increased LNG supply will reduce reliance on these other energy sources.

In comparison, short-term wholesale electricity prices fluctuated. Although the peace deal for the Israel/US-Iran conflict initially caused short-term electricity prices to decrease, the heatwaves across the UK and Europe drove prices up as the month continued. Whilst the sunny weather across the month increased solar generation, there was a reduction in wind generation, which caused overall renewable energy output to decrease. With this reduction in supply, short-term wholesale electricity prices increased.

Another factor causing short-term electricity prices to rise was that, with increased temperatures, nuclear generation in France was also reduced (as the river water used to cool the nuclear plants became too warm). This meant that supply was further reduced and became more expensive to import to the UK. Additionally, planned maintenance reduced nuclear output in the UK, limiting nuclear supply throughout the month.

Looking ahead, fluctuations in short-term wholesale electricity prices will be primarily driven by: 

• Weather, with more heatwaves likely to impact both demand and supply. 

• Renewable generation output, especially levels of wind generation, as wind generation usually decreases during summer. 

• Any maintenance periods for power plants, especially nuclear generators, that could impact supply levels. 

Long-term wholesale electricity prices may be influenced by: 

• The impact of the peace deal for the Israel/US-Iran conflict and its longevity. 

• The availability of gas and LNG to replenish gas storage levels, which will need to be filled in preparation for increased winter demand. 

Prices for Renewable Energy Guarantees of Origin (REGO) certificates were relatively stable throughout the past month. There was reduced movement in the market, following the ending of the reporting window for the last compliance period meaning decreased buying and selling of REGOs.

As we approach the middle of the year and amidst political change, we’re reflecting on some of the recent developments within Government policy, including those from the last two years, that have helped the UK move closer to its climate commitments. Through ambitious targets, investment, and financial support for businesses looking to decarbonise, the UK has taken some major strides towards its goal of achieving net zero by 2050.

Investment at system-level

The Government’s Clean Power 2030 Action Plan, published at the end of 2024, established an ambitious framework for the acceleration of climate action, outlining a pathway to reach a decarbonised energy system by 2030. The Government’s action plan established the direction for the Government’s future progress, with grid connection reforms approved in May 2025, helping to streamline the process of connecting new renewable energy projects to the grid. More recently, in 2026 Ofgem announced £28 billion of funding for energy network companies to expand the grid’s capacity to host renewable energy and ensure a reliable and safe system. 

Progress for renewable energy

The last few years has seen various milestones, such as a £300 million investment in 2025 provided to Great British Energy (GBE) to go towards local supply chains for offshore wind energy projects. This support for more homegrown renewable energy was part of the £8.3 billion budgeted to GBE overall. In April 2026, we saw Great Britain’s record for solar generation broken twice, consecutively, and new records in wind power generation set in December 2025. 

Financial support for businesses

The Government has also provided funding for businesses to electrify and decarbonise their operations, with a total of £51.9 million in 2025 awarded to businesses to assist them in establishing innovative projects to cut carbon emissions, as part of the Government’s Plan for Change initiative. In 2025, the Government’s ‘Clean Energy Jobs Plan’ outlined how they intended to build a ‘clean’ energy workforce, whilst ensuring that the workers are financially supported and have the best workers’ rights possible. In May 2026, the Government also took action to cut manufacturers’ electricity bills, by expanding the British Industrial Competitiveness Scheme (BICS), allowing 40% (3,000) more businesses to receive financial support. 

With the UK’s net zero commitments fixed in law, the course for further progress is already set. We hope to see the UK continue to accelerate movement towards their climate commitments through decisive and collective action. 

The Climate Change Committee’s (CCC’s) ‘Progress in reducing emissions 2026 report to Parliament’ emphasised to the Government that electrification is the most efficient way to lower energy bills and strengthen energy security, encouraging acceleration². 

Despite the UK’s emissions falling by 1.8% in 2025, and the Government’s plans to deliver the Fifth Carbon Budget (which will apply to 2028-2032), the report emphasised that the Government must act faster in accelerating electrification in order to achieve its decarbonisation targets. In doing so, they could help to protect businesses and households from the impact of global fossil fuel price spikes, as observed recently following the ongoing Israel/US-Iran conflict. Some key challenges include accelerating the adoption of heat pumps, limiting agricultural and land use emissions, and switching aeroplane fuel supply to ‘sustainable’ sources. 

Alongside this, the UK Government set out their plans for the Seventh Carbon Budget this past month, applying to the years 2038-2042, which also emphasises the importance of electrification. Carbon Budgets act as guidelines for how to achieve a limit on GHG emissions across various sectors in a five-year period, with the objective of reducing emissions year-by-year to hit national targets. This latest budget commits to the UK reducing emissions by 87% below 1990 levels by 2040, with this commitment now legally binding. This action is hoped to create £865 billion in net benefits by 2050, largely through limiting the damage from extreme weather and minimising imports of fossil fuels. Electrification is a key strategy within this, looking to move away from reliance on gas through on-site technologies and the growth of renewable generation. 

The cost of the energy transition is forecasted to be lower than the cost of previous energy crisis , with the transition estimated to be around 1.2% of GDP per year³. The Government’s press release notes that half of recessions in the UK since 1970 have been caused by fossil fuel price shocks, so decreasing dependence on these fuels will be an important part of strengthening the UK’s energy security. 

To read more about the Government’s plans for the Seventh Carbon Budget, visit here⁴. 

The International Organisation for Standardisation (ISO) has launched a new public consultation on the creation of the world’s first international standard for organisations to use as the basis for demonstrating credible, verifiable progress towards net zero, ISO Net Zero Aligned Organizations Standard (ISO 14060)⁵. The draft for the standard will be available for a 12-week period, open for feedback from ISO’s members in over 170 countries. 

The development of this standard aims to specify the principles, requirements and guidance for organisations to develop, implement and communicate their net zero pathway and transition progress, as well as to resolve fragmentation across different existing standards. Importantly, this standard will align with the Science Based Targets initiative (SBTi), allowing organisations to independently verify their SBTi targets within their transition plan. The development expands on the ISO Net Zero Guidelines, launched in 2022, and takes into consideration growing calls from organisations, governments and investors for a harmonised approach to navigating the energy transition and tackling climate resilience. If you’re interested in participating in this consultation, you can find more information here⁶. 

Alongside this, the Science Based Targets initiative (SBTi) also released their Corporate Net-Zero Standard V2.0⁷, providing a framework to allow businesses to set emissions reduction targets in line with the latest climate science. The update encourages greater transparency from businesses reporting, a stronger focus on emissions from businesses value chains (which impacts different scopes of a business’s carbon footprint), and prioritisation of embedding planning for their transition into businesses’ strategies. 

More specifically focused on one sector, the British Standards Institution (BSI) also recently launched ISO 32212⁸, which is an international framework for financial institutions who are developing plans to reach net zero, to help with their financial and investment strategies. This includes banks, insurers, asset managers, asset owners and others in the finance sector. Through this guidance, BSI aims to strengthen consistency for financial institutions when creating net zero transition plans. 

With climate action and sustainability becoming increasingly essential for businesses long-term strategies and resilience, it’s encouraging to see ISO and SBTi take steps towards providing consistent guidance to help organisations across the world limit their emissions. 

UK Government announces investment in Battery Energy Storage Systems 

At a recent G7 summit, Keir Starmer announced a £1.3 billion investment in Battery Energy Storage Systems (BESS), with the aim to contribute towards a more flexible, balanced grid. £300 million of this investment will come from Atri Energy Transition, and £1 billion will come from InfraVia Capital Partners. Atri is expected to invest in large-scale BESS and advanced manufacturing, whilst InfraVia will use this money to invest in flexibility in the UK, including through BESS. 

With flexibility and energy storage becoming increasingly essential to balance a decarbonised grid, it’s encouraging to see significant funding go towards growing the UK’s BESS at a wide scale. Find out more, here⁹. 

New survey shows support for a ‘people-centric’ net zero energy transition 

World Wildlife Fund’s (WWF’s) new survey has revealed strong support from businesses for a transition to a net zero society, with many asserting that this transition is essential for growth and resilience. Amongst the survey’s findings: 

• 90% of the 500 senior leaders surveyed believe that it is their responsibility to minimise their environmental impact. 

• 84% stated that tackling climate change is a responsibility for businesses. 

• 74% answered that the transition to a net zero society would be a positive contribution to their country’s prosperity. 

Whilst this is positive to see, the results also showed that ‘only 35% of businesses surveyed say social impacts are significantly or fully integrated into their environmental strategies and transition plans’. Just 22% stated that they are taking action to manage these risks.  

Whilst these survey results demonstrate a strong consciousness around business’s responsibility to take climate action, it’s evident that continued and sustained action should be taken to fully ensure that the transition is fair and just. Read more, here¹⁰. 

Global electrification initiative is launched 

As we acknowledged above, electrification is crucial to reaching decarbonisation targets and improving energy resilience. To push forward and accelerate electrification on a global level, a new international initiative has been launched by Ed Miliband, alongside the UN, international governments and businesses – titled the ‘Electrify Now’ initiative. This initiative follows the recently proposed target of scaling up electrification to meet 35% of international energy demand by 2035, based on analysis from IEA and IRENA. It is hoped that the Electrify Now initiative will accelerate investment and strengthen collaboration between countries and businesses. Its three main focus areas are: 

• Increasing the generation of ‘clean’ energy, whilst ensuring security of supply chains. 

• Upgrading grids and growing energy storage, to manage growing amounts of renewables on the systems. 

• Expanding electrification of the industry, buildings and transport sectors. 

To find out more about this update, visit here¹¹. 

The UK’s renewable energy hit a new record in the first quarter of 2026 

Renewable energy generated a record-breaking 53.1% of the UK’s electricity in the first quarter of 2026 – a significant jump of 7.4% compared to the first quarter of 2025. Nearly one third of the UK’s electricity in this period was generated solely by wind energy, which saw an increase of 30% compared to the same period last year. Solar also saw an increase in generation, with a 1.8% increase to 2.7TWh. 

You can read more about this milestone, here¹². 

Operational offshore wind capacity across the globe has increased by 7.6% in the last year 

In the past twelve months, global operational offshore wind capacity has grown by 7.6%, with 91.9GW of capacity now operational, compared to 85.4GW previously. This growth represents the equivalent of powering an additional 6.5 million British homes across a whole year. Over the next 5 years, the UK will contribute £81 billion in investment – the second highest amount globally. With 7.75GW further capacity close to completion, this means that the milestone of 100GW is expected to be reached later this year. 

Read more about this encouraging news, here¹³. 

Statkraft to upgrade and increase production for Norwegian hydro plants 

As part of their wider plan to upgrade Norwegian hydropower, Statkraft will be increasing energy output levels in Norway’s largest hydropower reserve, Blåsjø, by channelling more water through a new Blåfjell Pump¹⁴, which Statkraft have announced that they will be building. This new pump is expected to increase production of hydro power by 54GWh, and means that the water can be stored in the reservoir for multiple years. This will increase generation in operational hydropower plants, without the environmental impact of building more hydropower plants. 

Statkraft has also taken action to increase productivity in its Mår power plant in Rjukan¹⁵, Norway, by applying for a licence from Norwegian Water Resources and Energy Directorate (NVE). With the power plant being originally commissioned in 1948, the hydro power plant was approaching the end of its operational life, but Statkraft’s project to upgrade it will help to extend this. The project will increase productivity in generation from the power plant by over 13% and increase capacity from 180MW to 520MWr. 

These projects are an important way for Statkraft to maximise existing renewable energy projects, and ensure that these plants can generate renewable energy for a longer period.  

BESS optimisation agreement signed by Statkraft 

Statkraft has secured a long-term agreement with Pulse Clean Energy, to provide optimisation and trading services to their Penn BESS. This 128MW BESS scheme will be located near Wolverhampton, and is forecasted to save 30,000 tonnes of carbon dioxide annually, once operational. The agreement also includes a long-term income guarantee to see the project to completion, in what is expected to be early 2028. 

Technologies like BESS will be critical in ensuring that the UK’s grid is balanced and efficient throughout the energy transition, as more renewable energy projects get connected to the grid. It’s encouraging to see Statkraft continue to grow its pipeline of flexible assets in the UK, as we move closer towards a decarbonised grid. 

You can read more about this update, here¹⁶. 

If you have any questions about how these updates might affect you or would like to find out more, our team of experts are happy to provide further insight. You can contact them on 0330 053 8620 or here.