From Energy Sharing to Energy Security: What's Next?

Summer Edition

Welcome to this latest issue of Energy & Utilities Insights.

We’ve just come out of one of the hottest Junes on record, with England’s highest June temperature on record set on 26 June. This saw electricity operator NESO issue (and subsequently withdraw) two electricity system margin notices. Not a sign of impending black out – far from it – but a signal to the market of tight margins. It appears the key drivers were lower than expected wind speeds

Andrew Whitehead

Head of Energy & Utilities

(symptomatic of a heat dome), combined with reduced gas plant availability and of course increased consumer use of cooling equipment. Another factor may have been lower interconnector volumes from France due to some nuclear plant shutdowns caused by the hot weather.

This was the first summer period we’ve seen margin notices issued by NESO, and a sign of the challenges presented by the change in climate.

Timely then for Ofgem to move forward late June with its cap and floor scheme for long duration electricity storage (LDES), which is intended to unlock significant investment in technologies such as pumped-storage hydro, compressed air energy storage, lithium-ion batteries and vanadium redox flow batteries. LDES refers to energy storage systems that can store and release energy over long periods, defined as eight hours or more.

It's critical that we have more LDES to support a growing renewables deployment, given the intermittency risk that currently makes balancing supply and demand at times challenging (and expensive). This cap and floor scheme was selected by government back in October 2024 and is modelled on the approach successfully used for some of our electricity interconnector projects.

This latest ‘minded-to’ decision, now out for consultation, will help give developers and investors greater clarity on the projects that can expect to receive support, and feedback from the consultation will inform Ofgem’s final determination on project selection. And really good to see we have a client represented in the project list.

The ongoing news story in the sector right now of course is much more political, as we speculate on how an Andy Burnham premiership might impact on current government energy policy. More on that when the detail emerges - as it will need to without too much delay - but the battleground policy areas look set. Chief amongst these is a possible move away from ideological opposition to new North Sea oil and gas exploration licences, which plays well to the industrialisation and decentralisation agendas. We also have public control of energy (and water) back in debate - whatever that actually means in practice, as full-blown renationalisation is surely unaffordable. This policy area is likely to have much more far-reaching consequences than the North Sea licensing debate, and investors will be watching closely.

AEEC 2026: Turning Energy Sharing into Action Across Europe

At the recent AEEC Spring Conference in Rome, Andrew Whitehead, our head of energy, joined experts from across nearly 20 European countries to dig into one of the most exciting shifts in the sector right now: energy sharing. Mandated by updated EU rules, energy sharing refers to the ability of domestic consumers and businesses to access locally generated renewable electricity like solar or wind through contractual mechanisms.

What stood out was just how universal the challenge is. Across Europe, we’re all grappling with similar barriers, particularly around regulation and funding, but we’re also seeing real creativity in how different regions are tackling them. In places with a strong tradition of community energy, even simple ideas – like solar on public buildings or shared schemes across multi-occupancy developments – are already delivering tangible benefits.

And that’s just the beginning. Done well, energy sharing has the potential to drive lower bills, stronger communities, local jobs and greater energy security.

There’s growing momentum in the UK too. Our regulatory framework in this area is complex, but developments such as market-wide half-hourly settlement, an ongoing focus on the restrictive class exemption licensing rules as well as technological developments such as plug-in “balcony” solar, are driving us in the same direction. And with initiatives like Great British Energy’s Local Power Plan, backed by £1bn and supported by policy change, it feels like we’re starting to turn ambition into action.

Cereals 2026: Agriculture Powers Ahead in the Energy Transition

Several members of the energy team attended Cereals 2026 earlier this month, saw first-hand how agriculture is rapidly embracing the energy transition. Across the two-day show, one message was clear: the sector is not only reducing costs but becoming a vital producer of renewable energy. From solar arrays and anaerobic digestion to electric farm vehicles and automation, innovation is accelerating at pace.

Conversations throughout the event highlighted the growing importance of grid connections, power purchase agreements, planning consents and private wire arrangements – alongside the challenges of bringing projects from concept to completion.

A standout moment was Peter Dilks’ panel discussion with Bidwells, where he explored how landowners can identify opportunities, structure deals and maximise value from energy projects.

It was a brilliant event, capturing both momentum and ambition. We’ve also put together a short highlights video from the two days.

UKREiiF 2026: Taking Control of Energy Deliverability in a Grid-Constrained Future

At UKREiiF 2026, we, in partnership with Estates Gazette, brought together industry leaders for the “Wired for Power” roundtable – placing energy deliverability firmly at the centre of the UK’s development agenda.

Our own Kellie Hatton and Peter Dilks were joined by experts from Estates Gazette, Savills, Aspinall Verdi, Rider Levett Bucknall, Tritax Big Box Developments and Landmark Chambers to explore how energy is reshaping development strategy.

The discussion highlighted a decisive shift: reliable power is no longer a secondary concern but the foundation of viable, future-ready places. With grid delays intensifying, attention turned to embedded generation, private wire systems and microgrids, alongside innovative ownership and funding models. Collaboration across developers, landowners, investors and local authorities emerged as critical to unlocking delivery.

The key takeaway was clear, developers who proactively take control of their energy strategy – rather than waiting for the grid – will lead the way in delivering resilient, sustainable communities fit for the future.

Renewable Energy Association: Unlocking Opportunity in the Energy Transition

At a recent Renewable Energy Association event, Kristine Malok and Peter Dilks gained valuable insight into the forces shaping today’s energy market—and the opportunities ahead. Conversations highlighted how deeply intertwined geopolitics, inflation and energy security have become, with ongoing volatility in global oil and gas markets continuing to influence costs, investment and growth.

Amid this uncertainty, the prevailing mood was notably optimistic. Strong momentum in solar, alongside increasing potential across batteries, heat pumps, EV infrastructure, biofuels and organic energy solutions, demonstrated a sector actively adapting and evolving.

The event served as a timely reminder that the energy transition is about more than meeting environmental targets—it is a strategic and economic imperative. Even in challenging conditions, the direction of travel is clear: innovation and investment in renewables will play a defining role in shaping a more resilient energy future.

Energy Transitions Observatory: The Threefold Challenge of Grid Connection, Flexibility, And Bankability

The latest Energy Transitions Observatory, produced in partnership with AZB & Partners (India), Brigard Urrutia (Colombia), DaWo Law Firm Shanghai (China), De Gaulle Fleurance Africa (Senegal), De Gaulle Fleurance EMEA (United Arab Emirates), Rittershaus (Germany), and us (Shakespeare Martineau), highlights a global energy system under accelerating pressure – but also one full of opportunity.

Across all markets studied, electrification is driving sharp growth in demand, particularly from data centres, AI and new technologies, while grid infrastructure struggles to keep pace.

A consistent theme is the widening gap between ambition and delivery. Projects are being held back by grid connection delays, regulatory complexity and funding constraints, with more than 2,500GW of generation and storage currently stuck in connection queues worldwide. The result is a growing mismatch between how quickly energy infrastructure can be built (often five to 15 years) and how rapidly demand is increasing.

From a UK perspective, it reflects a familiar picture. While the regulatory framework broadly supports grid access, it is far from guaranteed in practice – often constrained by technical, administrative and commercial barriers. This reinforces the need for earlier planning, more flexible systems and alternative delivery models to keep projects on track.

Encouragingly, the report points to shared challenges across jurisdictions, and therefore shared solutions. Greater collaboration, smarter regulation and investment in flexibility will be key to ensuring the energy transition can move from ambition to reality.

You can read the full edition, including the approaches taken by other countries.

Read full edition

Our latest thoughts and insights

Ofgem Review 2026: What the Proposed Reforms Mean for Energy Businesses

Gate 2 Connection Offer Deadlines Updated: What Ofgem’s Decision Means for Energy Projects

The New Vision for Water white paper is a once in a generation reset

Government’s solar panel and heat pump policy is only half of the answer

Hydrogen-powered HGVs – what’s holding the UK back?

ESG In 2026: How AI Regulation, Sustainability Reporting and Greenwashing Risk Affect UK Businesses

As always, we encourage you to engage with us through feedback, suggestions, and discussions. Please get in touch with any queries regarding the subjects discussed in this edition or any topics you would like to see in the future.

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Updated: September 2025

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