Bryt Insight September 2025

Bryt Energy
| 09th September 2025 | Bryt Insight
BRYT ENERGY MARKET UPDATE
LONG-TERM PRICES
SHORT-TERM PRICES
LOOKING FORWARD
REGOs
INDUSTRY UPDATES
ELECTRIC VEHICLE GRANTS FOR VANS, TRUCKS AND CARS HAVE BEEN EXTENDED
SUPPORT FOR ‘GREEN’ JOBS IS GROWING
THE UK’S LARGEST BATTERY ENERGY STORAGE SYSTEM HAS BEEN CONNECTED TO THE GRID
NEWS IN BRIEF
SPOTLIGHT ON RENEWABLES
SPOTLIGHT ON STATKRAFT

Over the past few months, the impact of climate change has been evident across the UK and wider Europe. The Met Office announced that this summer has been the hottest ever on record1, with the UK also seeing a record-breaking land area burned as a result of wildfires within a single year2.

With the increasing frequency and severity of heatwaves expected to continue, it’s more important than ever that governments, businesses and individuals take action to mitigate the effects of climate change. In the past month, it’s been encouraging to see the increased support from the UK Government and public towards jobs and technologies that involve tackling the climate crisis, and the new records set for renewable energy.

You can find out more about these updates in sustainability and energy in September’s Bryt Insight:

BRYT ENERGY MARKET UPDATE
LONG-TERM PRICES

Long-term wholesale electricity prices fell in the first half of the month, but then climbed in the second half.

The initial decrease in prices for forward annual contracts from October 2025, April 2026 and October 2026 was due to the peace talks between Ukraine and Russia, which seemed to be moving towards a resolution. However, by just after the middle of the month, a resolution seemed less likely, which caused long-term prices to rise with the risk of future gas availability being impacted by the continued conflict.

SHORT-TERM PRICES

In the first half of August, increased generation from solar and wind reduced demand by 4% on the electricity grid, as most solar generation is connected at a more local distribution network level, rather than the national transmission network. However, this reduced demand did not cause any reduction in prices. This was because there was also less nuclear generation from the UK’s nuclear fleet due to maintenance, both planned and unplanned. These two factors evened each other out and caused no significant impact on short-term wholesale electricity prices.

However, the French nuclear fleet also saw lower generation, due to the high river temperatures, which meant reduced usage for cooling. This caused day-ahead short-term electricity prices to increase in the first half of the month.

This rise in short-term electricity prices continued into the second half of August, as wind generation decreased, which meant that more expensive UK gas generation had to be used and more electricity from Europe had to be transferred to the UK through interconnectors. This caused day-ahead prices to again increase towards the end of the month.

LOOKING FORWARD

Looking forward in the short term, whilst maintenance on the UK’s nuclear reactors was due to end at the start of September, currently, 50% of the fleet is not yet running. This delay could cause electricity prices to rise, as this may affect the availability of supply.

Looking further ahead, employees at French nuclear facilities have voted for strike action in October. If this goes ahead, it would lower the output from the nuclear fleet, which would also tighten availability of supply and cause prices to increase.

REGOs

Renewable Energy Guarantees of Origin (REGO) certificate prices continued the slow rise that we saw in July, especially in the later compliance period (April 2027 onwards). The lack of REGOs for sale, sometimes referred to as ‘liquidity’, in the later compliance periods meant that trades made were at a higher price than expected, causing this increase in the REGO certificate prices.

INDUSTRY UPDATES

Nuclear RAB levy

The UK Government has recently announced more information regarding the new Nuclear Regulated Asset Base (RAB) levy3. This RAB charge is a funding mechanism to support the development of Sizewell C, a nuclear power station project in Suffolk. It helps provide a reliable income stream through the construction phases, and is designed to reduce costs to the consumer in the long run. The RAB scheme is funded through a levy on consumers which may be used in future to also support other nuclear projects.

The Government have now announced the charges that will apply for the Nuclear RAB on all electricity bills, except for Energy Intensive Industries (EII):

  • Nuclear RAB Supplier Obligation Levy: The charge will be £3.455/MWh from 1st November 2025
  • Nuclear RAB Operational Levy: The charge will be £0.0028/MWh from 1st October

While these initial costs have been confirmed for the first few months, they are forecasts and will be reconciled at a future date, so may vary in later periods.

Increase to TNUoS charges

Ofgem have updated the charges for Transmission Network Use of System (TNUoS). These charges recover the costs of installing and maintaining the transmission system and are charged to all suppliers and generators.

Ofgem regulates TNUoS and other electricity network companies’ charges through a price control framework called ‘RIIO’ (Revenue = Incentives + Innovation + Outputs), running in 5-year periods, with the aim to ensure continued investment in infrastructure, as well as fairness for customers. With the new RIIO-3 price control period for Electricity Transmission systems upcoming from 1st April 2026 to 31st March 2031, Ofgem is reviewing the charges for this new period. Their recent draft determination signalled a significant increase in TNUoS charges (currently forecasted as a 100% increase for 2026/2027, compared to 2025/2026). The increased charges will be in effect from the new TNUoS tariff period – April 2026 onwards.

Further updates from NESO and Ofgem are expected over the coming months and, until then, it is not yet clear what the extent of these charges will be, or how they will be applied across the TNUoS bandings. Definitive certainty on the tariff prices for the 2026/27 year will not be available until after the end of January 2026, when the new fixed TNUoS charges are published.

We will update as further information is released. In the meantime, you can find out more about TNUoS charges here4.

ELECTRIC VEHICLE GRANTS FOR VANS, TRUCKS AND CARS HAVE BEEN EXTENDED

The UK Government has announced that the plug-in van and truck grant5, which provides discounts for businesses and individuals purchasing electric vans and trucks, has been extended until at least 2027. The grant is aimed to help encourage the uptake of electric vehicles and help more businesses and fleet operators to decarbonise their transport and cut running costs. The Government has stated that businesses could save over £2,800 a year on fuel costs alone.

Currently, the grant provides discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks. The specific grant amounts for the 2026-2027 financial year are yet to be announced.

Alongside this support for electric vans and trucks, the Government has also recently launched the Electric Car Grant, which provides discounts on selected electric vehicles, varying based on the level of environmental criteria that the car meets. Various models have now been approved as eligible for the grant6, and discounts varying between £1,500 and £3,750 will be automatically applied at the point of purchase.

This financial support is part of the Government’s wider efforts to decarbonise transport. With over a third of CO2 emissions from UK roads from commercial transport7, support in helping businesses switch to electric vehicles is crucial in reducing the UK’s emissions.

SUPPORT FOR ‘GREEN’ JOBS IS GROWING

New research has found that ‘green’ job roles, which encompasses sectors such as renewable energy, waste and recycling services, are some of the fastest growing roles in the UK8. The title of ‘Sustainability Manager’ is the second-fastest growing, with ‘Climate Data Analyst’ sixth on the list. The research also found that ‘green’ job opportunities are being created four times faster than those in the broader market.

Additionally, it seems jobs in these sectors are of particular interest to teenagers between the ages of 16 and 18. According to the results from a separate poll9, 44% of surveyed school leavers would like a ‘green’ job because they would be proud to be contributing towards a more sustainable future. The industry of most interest to the respondents was renewable energy (30%).

With the growing demand and popularity of ‘green’ jobs, it’s essential that the skills necessary for these jobs are developed at a similar rate. For example, the UK Government has made efforts to support the offshore wind industry specifically. A new Fair Work Charter has been set out10, which requires wind developers to pay a minimum investment in upskilling workers and ensuring well-paid, secure jobs in the industry. This can be either through a dedicated skills fund or directly, through providing upskilling and training routes for workers locally.

Offshore wind energy has an important role in the UK’s decarbonisation ambitions, so it’s encouraging to see increased support for those employed in the wind industry. Beyond the wind industry, it’s also positive to see more popularity and demand for those jobs that contribute to preserving or restoring the environment. If you’re interested in getting more involved in the renewable electricity industry, you can find the careers that are available here at Bryt Energy, here.

THE UK’S LARGEST BATTERY ENERGY STORAGE SYSTEM HAS BEEN CONNECTED TO THE GRID

The biggest Battery Energy Storage System (BESS) in the UK, Thurrock Storage, is now powered up and connected to the UK’s grid. The storage system has 300MW (600MWh) battery storage and can respond quickly to the grid’s needs, powering up to deliver its full output in seconds. Now that Thurrock Storage is connected to the transmission network in Essex, it will create local job opportunities for operations and maintenance.

The UK Government’s Clean Power 2030 Action Plan outlines the need for between 23GW-27GW of battery capacity in order to support the UK’s decarbonisation targets11. As batteries are able to take in surplus renewable electricity generation, and dispatch this back to the grid when required, they offer an essential source of storage to support increased renewables, which can be intermittent, onto the grid. The record-breaking amount of storage that Thurrock Storage is providing is a significant contribution towards this target.

You can find out more about Thurrock Storage here12.

NEWS IN BRIEF

The number of businesses setting SBTi targets has increased

A growing number of organisations are setting carbon emissions reduction targets with the Science Based Targets initiative (SBTi). The SBTi have released their latest SBTi Trend Tracker13, which found that the amount of businesses that are setting verified near-term SBTi targets was 97% higher in Q2 2025, compared to in Q4 2023. So far, this brings the total of companies that have emissions reduction targets validated by the SBTi to 8,715, with the sharp increase showing that more businesses are committed to limiting their carbon emissions.

The SBTi is currently in the process of updating their Net Zero Standard, to support more businesses in setting emissions reduction targets. If you’d like to find out more about SBTi’s development of the Corporate Net Zero Standard V2, visit here14. If you’re interested in our own SBTi targets here at Bryt Energy, you can find out more here.

Brazil implores countries to submit their carbon-cutting proposals ahead of COP30

While more businesses are setting targets to limit their emissions through the SBTi, on a global level, COP30 host Brazil has issued a call for countries to submit their plans for cutting their emissions, known as Nationally Determined Contributions (NDCs), to the UN15. Fewer than 30 countries so far have submitted their plans ahead of the submission deadline later this month, with some of the largest emitters, such as China and the European Union (EU), yet to submit their NDCs.

Brazilian diplomat André Corrêa do Lago urged governments to submit their NDCs, and warned them that if their targets were not ambitious enough, further action would need to be taken during the next international climate summit, COP30, in November.

Later this year, we’ll be providing an update on the outcomes from COP30, with a particular focus on its impacts on the energy industry and renewable energy targets.

SPOTLIGHT ON RENEWABLES

A new record is set for UK renewable energy projects

According to UK Government data16, in Q2 2025, a record amount of 16.1GW new capacity from renewable energy projects were given approval to start building, across 323 projects. This is a 195% increase year-on-year, and aligns with the Government’s goal to ensure that 95% of Britain’s energy will be generated by low-carbon and renewable sources by 2030.

Alongside this growth, over 100 planning applications for BESS projects were submitted in the UK between April-June 2025, making up a combined 8.4GW of capacity – more than double compared to the same quarter last year.

It’s encouraging to see both the renewable energy and low-carbon technology industries continue to build momentum in the run-up to 2030.

Record-breaking solar power in the UK

The amount of solar power that has been generated across the UK in 2025 so far has already overtaken the total amount of solar generated across the whole of last year. By August 16th, 14.08 terawatt hours (TWh) of electricity had been generated from solar17, which was one third higher than the amount from this time in 2024.

This solar growth can be attributed to the UK’s sunny summer this year, as well as the rapid growth in solar panel installation. In March, the UK crossed the milestone of 18GW operational solar PV installed.

As a key part of the UK’s renewable energy targets, it’s important that solar electricity generation continues this positive trajectory.

SPOTLIGHT ON STATKRAFT

Statkraft moves forward with plans for Shetland green hydrogen scheme

Statkraft is moving forward with plans for its Shetland Hydrogen Project 2, which is a proposed 400MW electrolytic hydrogen to green ammonia production facility. The process of creating green ammonia involves using green hydrogen, which is made using renewable electricity.

The green ammonia created at the Shetland facility will be used in industries such as marine shipping and fertiliser production. This will help to support the UK’s industrial decarbonisation plans, as it reduces emissions compared to using alternatives, such as fossil fuels. As well as contributing towards decarbonisation efforts, projects such as the Shetland Hydrogen Project 2 will be critical in being able to use surplus renewable energy when supply exceeds grid demand.

Alongside the Shetland Hydrogen Project 2, Statkraft also has three Shetland wind farms in pre-construction currently: Mossy Hill near Lerwick, and Energy Isles and Beaw Field on Yell. Together, these assets will work to support the local area and will provide significant contributions towards the UK’s decarbonisation ambitions. To find out more, read here18.

TALK TO OUR TEAM

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.

Sources
      1. https://www.metoffice.gov.uk/about-us/news-and-media/media-centre/weather-and-climate-news/2025/summer-2025-is-the-warmest-on-record-for-the-uk
      2. https://www.carbonbrief.org/analysis-record-uk-wildfires-have-burned-an-area-twice-the-size-of-glasgow-in-2025/
      3. https://www.lowcarboncontracts.uk/our-schemes/regulated-asset-base/about-the-rab-scheme/
      4. https://www.neso.energy/industry-information/charging/tnuos-charges
      5. https://www.gov.uk/government/news/government-discounts-for-electric-vans-and-trucks-extended
      6. https://www.gov.uk/plug-in-vehicle-grants/cars
      7. https://www.gov.uk/government/news/government-discounts-for-electric-vans-and-trucks-extended
      8. https://www.livecareer.co.uk/career-advice/fastest-growing-jobs-uk
      9. https://news.eonenergy.com/news/one-in-three-school-leavers-plan-to-skip-university-after-school-as-demand-for-green-jobs-grows
      10. https://www.gov.uk/government/news/plan-for-wind-developers-to-pay-for-skilled-job-training
      11. https://www.gov.uk/government/publications/clean-power-2030-action-plan/clean-power-2030-action-plan-a-new-era-of-clean-electricity-main-report
      12. https://stateraenergy.co.uk/news/thurrock-energisation
      13. https://sciencebasedtargets.org/reports/sbti-trend-tracker-2025
      14. https://sciencebasedtargets.org/developing-the-net-zero-standard
      15. https://www.theguardian.com/environment/2025/aug/19/brazil-issues-last-ditch-plea-for-countries-to-submit-climate-plans-ahead-of-cop30
      16. https://electricalreview.co.uk/2025/08/27/record-quarter-for-uk-renewables-as-battery-plans-surge/
      17. https://solarstoragextra.com/uk-solar-output-tops-2024-as-renewable-approvals-surge/
      18. https://www.statkraft.co.uk/newsroom/2025/statkraft-shares-plans-for-green-hydrogen-scheme-in-shetland/

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