In June’s Bryt Insight, we highlight the continued evolution of sustainability reporting frameworks, as well as feedback from businesses on the importance of climate action to mitigate business risks. Alongside this, we spotlight announcements regarding upgrades to the UK’s heat networks and grid regulation, which aim to support the transition to a low-carbon energy system.

You can find out more about these updates, alongside other news in renewable energy and sustainability, in this month’s Bryt Insight. Read more below:

In contrast to the variability that we saw in April’s day-ahead wholesale electricity prices, prices in May remained stable yet high throughout the month. Similarly, month-ahead prices mirrored day-ahead prices.

This was due to less supply available to meet demand, with low wind energy generation in May and a 20% reduction in nuclear energy generation, as a result of unplanned power outages. These prices remained high despite a significant increase in solar energy generation, as the heatwave seen in May also caused an increase in air conditioning and fan usage, counteracting the increased generation with greater electricity demand.

In contrast to the stability seen in the short-term wholesale electricity prices from May, long-term wholesale electricity prices were also high, but fluctuated more. Prices for the front season (the winter 2026-2027 season) and the front annual (which set 12-month prices from the start of the next electricity season) increased during May, with the ongoing Israel/US-Iran conflict still the biggest factor in this.

The lack of a resolution to the conflict caused long-term prices to continue to increase, with availability of supply from the region still uncertain. However, the potential extension to the ceasefire and peace talks towards the end of May caused prices to temporarily decrease, before they increased again following new strikes being launched at the start of June.

Prices for next summer (summer 2027) and beyond are not currently being impacted by the conflict and have remained relatively stable throughout May.

Looking ahead, short-term wholesale electricity prices are likely to be primarily driven by weather, as this is a key factor in the summer months, making it harder to anticipate prices. Heatwaves and a lack of wind energy generation could cause short-term wholesale electricity prices to remain high, whereas cooler temperatures and higher wind and solar energy generation, could cause prices to fall, as renewable energy will be more able to match electricity demand.

Long-term wholesale electricity prices will continue to be driven by the impact of the ongoing Israel/US-Iran conflict, due to concerns over the availability of Liquefied Natural Gas (LNG). Gas storage levels across Europe are still low, after more than usual was used over the winter, and the Israel/US-Iran conflict meant that storage levels could not be refilled as quickly as normal. The storage levels will need to be filled with gas by the winter to prepare for increased demand during this season. However, if electricity demand is particularly high during the summer, or if renewable and nuclear energy supply is especially low, this could mean that demand for gas-fired electricity would be competing with the gas storage needs. This may drive electricity prices higher due to increased demand for gas.

Prices for Renewable Energy Guarantees of Origin (REGO) certificates increased across May, for all future compliance periods. Previously, this upcoming end to the compliance period caused an increase in excess REGOs being sold, which caused prices to fall. Following the end of the compliance period for REGOs, more people have been looking to purchase REGOs for this new period, driving up demand and prices.

As the UK moves further towards its target of decarbonising the grid by 2030 and reaching net zero by 2050, carbon reporting frameworks are evolving with the aim to improve the accuracy and credibility of businesses’ disclosures.

Science Based Targets initiative (SBTi) has recently revised an appendix to its Corporate Net-Zero Standard¹, as part of the development of the Corporate Net-Zero Standard V2, which is expected to be published in 2026. This revision aims to make setting near-term emission reduction targets more accessible to a wider array of businesses, by taking into consideration the baseline year from which the targets were set, when approving the required year-on-year reductions. The change will apply to any business that is setting or updating targets, from the end of April 2026 onwards.

Previously, companies setting near-term targets had to reach a minimum 42% reduction in emissions by 2030, regardless of when they set their baseline year. The new approach, announced April 29^th, now takes this into account, allowing them to spread the year-on-year reductions out to 2050, rather than requiring a steeper reduction to 2030. This makes the targets more accessible for those that have set targets and a baseline year more recently.

Importantly, the SBTi have maintained that reaching net zero by 2050 is an unchanged target, and more ambitious emission reductions are always encouraged. The change, in simple terms, means companies can follow a more linear reduction pathway to 2050.

This recent change to the SBTi’s standard follows the finalised edition of the UK Sustainability Reporting Standards, published in February this year. These standards set out the requirements for businesses to outline their sustainability-related risks (such as supply chain risks due to extreme weather) and opportunities in their financial reports, following the foundations of the UK’s original sustainability standards, IFRS S1 and S2. They are currently voluntary in the UK, but it is expected that the Financial Conduct Authority will finalise which businesses are mandated to disclose shortly. This will replace the requirements for businesses to report under the Task Force on Climate-Related Financial Disclosures (TCFD). You can find out more about the UK Sustainability Reporting Standards here².

The importance of climate action to mitigate business risks

As the impacts of climate change are increasingly felt across the globe, insights from businesses are also affirming the importance of climate action to mitigate these effects. Environmental disclosure data from organisations and subnational governments, shared by Carbon Disclosure Project (CDP)³, has highlighted the growing risk of extreme weather to businesses. The report found that these risks could cost almost US$1 trillion to the global economy. US$2.9 billion in losses were recorded by businesses in the 2025 reporting year, largely from the impact of extreme rain, and only 35% of companies (3,890 of 11,261) considered extreme weather as a financially material risk.

It is important to recognise that climate change is set to cause, and is already causing, significant disruption for businesses. It’s also essential that platforms like CDP and other climate disclosure reporting frameworks encourage businesses to examine how they will be affected to ensure risks are limited, and to showcase the importance of mitigating climate change.

DESNZ announces upgrade to 94 heat networks to cut energy bills

The Department for Energy Security and Net Zero (DESNZ) has announced a £15.6 million investment to upgrade areas of the UK’s heating systems that are either old or ineffective. This investment, which will go towards insulating pipes to minimise heat loss, and replacing leaking pipes and heat interface units (HIUs) in houses, aims to help cut energy bills through improving efficiencies.

Another pot of £25 million will go to four projects in England, to provide low-carbon energy through new heating systems, with £13.5 million going towards the Bristol City Leap heat network. This network will help generate heat in homes and businesses using heat pumps, which are powered through electricity, reducing reliance on gas heating. This will help to support the creation of 1,000 jobs as well as deliver heating without fossil fuels.

These upgraded heat networks will be an important part of shifting the UK’s energy usage to low-carbon sources and achieving the UK’s wider goal of reducing emissions by 68% below 1990 levels by 2030, with the decarbonisation of heat and transport playing a vital role in the energy transition. To find out more, visit here⁴.

Ofgem announces the next phase of UK grid regulation

Ofgem has announced their rulebook for the next phase of UK electricity grid regulation, which will run from April 2028 to March 2033, including rules to manage and control investment plans and costs regarding the distribution networks and the transmission network. This includes a “build and flex” strategy, which will mean that Distribution Network Operators (DNOs) will have to provide proof that they have maximised existing grid capacity using ‘smart, flexible demand technology’. This will ensure that DNOs have made as much progress as possible using their own technologies, before they can look to upgrade

This change is hoped to help avoid unnecessary, expensive upgrades that would be passed on to consumers’ bill and ensure that necessary grid upgrades are prioritised. To find out more, visit here⁵.

Significant majority of UK pension providers have a net zero target

According to the XPS Group’s review of the disclosures from the Task Force on Climate-related Financial Disclosures (TCFD), three quarters of the UK’s pension providers have net zero targets – although it notes that their strategies for emission reductions still will not meet the Paris Agreement’s goal to limit the global average temperature to well below 2°C above pre-industrial levels, with efforts to limit this to 1.5°C. The review looked at climate governance, the management of risks, targets and strategies.

Larger pension providers appeared to be at the forefront of climate action and ambitions, with smaller providers falling behind comparatively – 95% of larger funds had set targets, compared to only 54% of smaller schemes. The review set out four key actions to ensure progress towards net zero goals, including:

• informing trustee groups about the long-term case for managing climate risks
• securing ambitious but practical net zero targets for the following year
• taking an approach to climate strategies that is forward looking
• engaging with investment managers using measurements such as the SBTi.

To read more about the review’s findings, visit here⁶.

The world’s largest planned offshore wind farm receives further planning permission

Two new offshore wind farms have received planning permission, making up 3GW towards what will be the world’s largest offshore wind farm. Dogger Bank South West and South East were given the green light from DESNZ, following a submission in June 2024, and are expected to be commissioned (the final step before they can start generating energy) by 2032. They will be located 100km from the northeast coast of England. Both projects also received contracts in the latest Contracts for Difference (CfD) auction, Auction Round 7, which ensures the project has financial support for a minimum of 15 years.

This 3GW of renewable energy is expected to provide enough electricity to power the equivalent of three million British homes, contributing towards the UK’s energy independence and security, and makes up part of the wider Dogger Bank Wind Farm project⁷. This project will be made up of Dogger Bank A, B and C, and is expected to collectively make up the largest offshore wind farm in the world – with a combined capacity of 3.6GW.

To read more about this latest development, visit here⁸.

Statkraft plans to reinvest in Norwegian hydropower

Statkraft has announced that they will be increasing their investment in Norwegian renewable power generation, with a planned investment of NOK 80 billion (£6.4 billion) over the upcoming ten years – an increase from the NOK 44–67 billion (£3.5-5.3 billion) they announced in January 2024. This increase in investment is due to more projects in progress, inflation, and more long-term planning for the future.

NOK 70 billion (£5.6 billion) of this investment will go towards rebuilding and developing hydropower plants, as many of Norway’s hydro plants will need upgrading in the next decade, to enable continued energy output. Many dams and power plants also require refurbishment due to increased climate variability, to protect them from the impact of factors such as rainfall and water availability, and compliance with stricter safety requirements. Upgrading existing hydropower generators ensures that the technology can be used to its full potential and minimises the need to build new stations, utilising the infrastructure already built.

Statkraft have previously committed to completing upgrades for at least five hydro plants by 2030, maximising projects that are nearing the end of their operational lifespan and extending their use.

To find out more about this update, visit here⁹.

Statkraft reveals strong results for the first quarter of 2026

Statkraft have released their figures for the first quarter of 2026, showing strong results, due to a positive operational performance and higher energy prices in the Nordic region. This includes power generation numbers of 20.3TWh.

Statkraft highlights that some key investments from the quarter include multiple Norwegian onshore wind projects, which reached important milestones in the development process, as well as decisions concerning the rehabilitation of the Bjølsegrø dam and two large maintenance projects at Oksla and Sima hydropower plants. This investment from Statkraft will help ensure that these projects are used to their fullest to continue to generate renewable energy, rather than building new assets only. The Nordic region contributed the most to Statkraft’s growth, but the whole of Europe also performed strongly.

You can read more about the results from Statkraft’s first quarter of 2026, here¹⁰.

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.