This month, we take a look at some of the UK Government’s investments in the renewable energy and low-carbon sectors, with overwhelming demand prompting an increase in the Clean Energy Bonus fund. Additionally, this month’s Bryt Insight highlights the eagerness of business leaders to get involved in climate-related innovations and energy efficiency initiatives.

We also look at the value of the global ‘green’ economy, and the UK’s collaboration with both the European Union (EU) and Norway on decarbonisation efforts. You can find out more in June’s Bryt Insight.

Long-term wholesale electricity prices saw highs and lows throughout the month. From the beginning to the middle of the month, the wholesale cost of electricity was high, caused by a combination of factors, including:

• Improved relations between the US and China causing economic optimism, which causes expectations of increased production and electricity demand.
• Future plans from the EU to end imports of gas from Russia, which would result in less gas available to meet demand.
• The lack of progress regarding peace talks for Ukraine, which continues to create uncertainty regarding the availability of supply.

Following this increase in wholesale electricity prices, prices temporarily decreased to levels that have not been seen since the drop we observed at the start of April 2025. However, prices soon increased again due to various power station outages reducing the availability of supply, including the planned three-month maintenance of the 800MW Damhead Creek gas-fired power station in Kent. Prices also rose again because of a more positive economic outlook, which could lead to increased production levels and therefore higher electricity demand in the future.

By the end of the month, prices had again decreased, due to an improved outlook for available renewable energy generation and reduced gas prices, which still affects the price of electricity.

In terms of short-term wholesale electricity prices, for the majority of the month, prices were low.

The start of May saw sunnier weather, increasing solar generation and pushing prices down. This was seen as ‘reduced demand’ on the national grid, as most solar generation is connected at a more local distribution network level, rather than the national transmission network.

Otherwise, there were a couple of days in the month that saw very low wind generation level, as well as power station outages and maintenance, which reduced generation. This made prices slightly increase, but short-term prices were still overall low in the first half of the month. Towards the end of the month, sunnier days became less frequent, but more windy weather meant that wind generation was able to make up for the lack of sun. This caused short-term wholesale electricity prices to continue to decrease.

As we look forwards, an optimistic outlook for renewable energy generation levels, alongside reduced electricity demand, could mean that short-term wholesale electricity prices may decrease further. However, there will be other factors that may have the opposite effect on prices, including:

• An increase in gas prices that was seen at the start of June, due to maintenance on the North Sea gas fields and its pipelines, which therefore reduces the gas that is available in the UK.
• Significant amounts of gas that is moved into storage across the EU, which causes less gas to be available for supply.
• Increased demand for Liquified Natural Gas (LNG) in Asia, limiting the amount reaching the UK and the EU.
• The possibility of reduced generation from the French nuclear fleet due to strikes and warm weather, which restricts output.
• Warm weather will also increase demand for air conditioning and cooling across Europe, which will therefore provide an upwards pressure on UK wholesale electricity prices.

Long-term prices will continue to be impacted by the conflict in Ukraine, as well as concerns about tariffs from the US impacting the global economic outlook.

Overall, the factors that affect the price of wholesale electricity appear to be cancelling each other out, which could lead to less volatility in the coming month.

Following the decrease in the prices of Renewable Energy Guarantees of Origin (REGOs) certificates that we have seen over the last few months, prices have been increasing slightly over the last couple of weeks, potentially due to more people purchasing certificates.

Two recent surveys have found that business leaders feel positive about the opportunities that come from climate action and are committed to energy efficiency measures. The surveys also found that the participating businesses would like further support to increase their sustainability initiatives.

The first poll, comprised of delegates at the Congress of Business in Glasgow¹, has found that an overwhelming 91% of UK business leaders see climate change as a major motivator for innovation in their various industries. Businesses are responding to the impacts of climate change, and the new regulations that come with it, with innovative technologies, improved processes and new partnerships – with 84% respondents believing that low-carbon technologies in particular can unlock new business opportunities for them. It’s encouraging to see that businesses are showing such enthusiasm for investing in a low-carbon future.

Similarly, a global survey, made up of 294 energy intensive organisations, has found that the majority of businesses are committed to energy efficiency². 99% of participants are working on energy efficiency measures, and 68% have increased their budget for energy efficiency in recent years. 84% of respondents also expect their businesses to either maintain or increase this funding within the next year. Energy efficiency is crucial in making energy go further, and can help to mitigate the increased energy demand that the UK is seeing across a range of industries due to electrification. It’s encouraging to see that businesses around the world are investing in energy efficiency now, and seeing the benefits.

However, both surveys highlighted financial constraints and a lack of financial support as businesses’ biggest challenge in strengthening their climate and energy-related initiatives. 78% of participants in the first poll highlighted that there is a lack of financial support to help businesses lower their carbon footprint, and 84% of participants in the second poll responded that further funding is needed in order to unlock the potential of energy efficiency.

Measures to support decarbonisation and increase energy efficiency can both have long-term financial benefits for businesses, so we hope to see further support to allow businesses to unlock these benefits.

In the last month, the UK has seen strong investment and funding for renewable energy and the production of low-carbon technologies.

The Clean Industry Bonus

The UK Government’s Clean Industry Bonus funding has more than doubled – from £200 million to £544 million – due to higher demand than initially anticipated³. As highlighted in March’s Bryt Insight, the Clean Industry Bonus provides financial support to offshore wind developers who prioritise investment in local and sustainable wind energy supply chains, specifically in areas where it is most required. This will accelerate the drive for renewable energy and create highly skilled jobs. The Government estimates that for every £1 that is spent on the bonus, there will be up to £17 of private sector investment. Alongside the creation of new jobs, this investment is expected to significantly boost the economies of the local communities in which these projects are located.

Sunderland gigafactory

In related news, a landmark deal has seen £1 billion secured to support the development of a gigafactory in Sunderland, which will manufacture batteries for electric vehicles (EVs)⁴. This investment in battery development will create up to 100,000 EVs per year – an increase on the UK’s current capacity by six-fold.

This funding, provided by the National Wealth Fund and UK Export Finance alongside private financing, will significantly increase the UK’s competitiveness in selling more EVs in the domestic and global markets, and will create 1,000 new jobs for the area. As well as this investment, the Government’s Automotive Transformation Fund will provide an additional £150 million in grant funding for the gigafactory.

The Public Sector Decarbonisation Scheme

Lastly, the latest round of the Public Sector Decarbonisation Scheme has awarded £630 million of funding, to go towards energy efficiency and low-carbon technologies in public sector buildings⁵. Through the funding of low-carbon technologies, like heat pumps and solar panels, as well as equipment such as insulation, LED lighting and double glazing, the scheme aims to help those in the public sector increase energy efficiency, whilst decreasing emissions and energy bills. It is estimated that the recipients of the fund will save £650 million per year, up to 2037.

As financial backing is often seen as one of the biggest obstacles organisations face in their sustainability efforts, it’s positive to see strong financial support to help encourage decarbonisation across the public sector, the manufacturing of low-carbon technology, and the creation of renewable generation.

The Great British Energy Bill is passed in parliament

After the UK Government first introduced Great British Energy in July of last year, the UK Parliament has now passed the Great British Energy Bill, which will officially establish the company as publicly owned, acting independently to develop and support renewable energy projects⁶. As well as this, the bill sets out Great British Energy’s priorities, including the reduction of greenhouse gas emissions and improvements in energy security and efficiency. The organisation is set to receive £8.3 billion in funding from the UK Government, across five years until 2029. We’ve already seen the impact of a portion of this funding in April’s edition of Bryt Insight, with £200 million recently invested in rooftop solar for the public sector.

Secretary of State for Energy Security and Net Zero, Ed Miliband, is now looking to outline Great British Energy’s strategic priorities and the various technologies they will focus on. To find out more about the bill, visit here.

The market value of the global ‘green’ economy stands at $7.9 trillion

The London Stock Exchange Group (LSEG) has released their 2025 Green Economy Investment Report, which analyses the performance and growth of the global ‘green’ economy. This refers to businesses, products or services with environmental benefits, such as renewable energy or recycling services⁷. The report has found that the global ‘green’ economy has a market value of $7.9 trillion, as of the first quarter of 2025. This is higher than every other sector except for technology, industrials and healthcare.

The report highlights that the world must invest $109 trillion-$275 trillion in the ‘green’ economy by 2050, if we are to achieve long-term climate change targets. This growth acknowledges the positive impact that businesses in these sectors have on the global economy, but it also highlights how essential financial investment will be in helping these organisations make a long-lasting difference.

You can find the LSEG’s report here.

The UK and the European Union (EU) to link emissions trading systems

The UK Government and the European Commission have announced that they will be establishing a link between their emissions trading systems (ETS) in order to make trade smoother, reduce the cost of decarbonisation, and reinforce emissions reduction pathways⁸.

ETS acts as a cap-and-trade scheme that allocates carbon allowances to energy intensive businesses, and caps the total level of greenhouse gas emissions that they can emit – meaning that companies that emit more than their allocation need to purchase additional allowances. This creates a market for businesses to reduce their carbon emissions and trade excess allowances, which incentivises industries to limit their emissions and invest in decarbonisation initiatives.

The EU’s ETS launched in 2005 but, following Brexit, the UK left the EU scheme and set up its own scheme, which is currently not aligned with the EU in terms of pricing and how the scheme operates. Following the linking of the EU and the UK’s trading systems, businesses will now be able to trade allowances across the two systems, which may help stabilise the price and accelerate emission reductions at a lower cost. Crucially, this means that UK businesses will not be negatively impacted by the EU Carbon Border Adjustment Mechanism (CBAM) – a new tax from January 2026. As a result, the UK’s Department for Business and Trade estimates that UK businesses that export goods to the EU will avoid some £800 million in tax payments to the EU in the first year of its CBAM operating.

To find out more about this announcement, visit here.

Statkraft’s CEO meets with Ed Miliband as he signs the Green Industrial Partnership

Statkraft’s CEO, Birgitte Ringstad Vartdal, met with the UK’s Secretary of State for Energy Security and Net Zero, Ed Miliband, while he visited Oslo to sign the Green Industrial Partnership between the UK and Norway⁹.

First announced in December 2024, the agreement aims to increase collaboration between the two countries and increase energy security in both. The partnership will support the development of green hydrogen, offshore wind and grid development in the North Sea, and will involve collaboration on offshore wind infrastructure protection. The UK Government has indicated that this partnership could reduce energy bills, provide £36 billion to the UK economy, and create up to 51,000 jobs.

This kind of collaboration between nations is essential to increasing energy security for both countries and accelerating the energy transition, and we’re eager to see how this partnership progresses. To find out more about the Green Industrial Partnership, read here.

Statkraft hosted a live session about energy security with former Minister of Foreign Affairs of Ukraine

Statkraft hosted an exclusive live session on LinkedIn with former Minister of Foreign Affairs of Ukraine, Dr. Dmytro Kuleba, exploring the vulnerabilities in energy procurement and security, especially regarding the Russian invasion of Ukraine¹⁰. The session explored how the conflict has, and continues to, influence energy prices and policies in Europe, and the dynamics of Europe’s energy security.

You can register to catch up on Statkraft’s recorded session here, and keep up to date with future lives on their LinkedIn profile.

New report highlights the potential of large-scale renewable energy in Wales

A new report, which Statkraft was a partner in producing, explores the value and potential that large-scale renewable energy could bring to Wales, if all forms of renewable generation are increased at scale. The report calls attention to the fact that if Wales reaches their ambitious renewable target of 17.9GW of installed renewable energy capacity, this would create £46.9 billion in private investment – over £10 billion of which would go directly into Welsh businesses. Investing in renewable energy to its fullest potential would also create 8,000 highly paid jobs across every part of Wales.

To read more about Statkraft’s report, visit here¹¹.

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 at heretohelp@brytenergy.co.uk.