‘Today marks an important day for the energy transition. The Energy Act is an important step forward in putting in place the critical frameworks and structures to encourage investment across the energy industry.

There is enormous potential waiting to be unlocked. This new legislation will help RWE progress it’s plans to develop the Carbon Capture and Storage and Hydrogen to Power technologies needed to enable firm, flexible generation across the UK. This clear signal from the Government will enable us to continue to invest in new technologies, at pace.

RWE particularly welcomes the expansion of Ofgem’s remit to include NetZero, the steps forward on licensing regimes for CO₂ transport and storage, and the establishment of mechanisms for delivering hydrogen support.

Ofgem’s new remit should make it easier for the regulator to consider more fully the cost impact of its regulatory decisions on future consumers when balancing against the needs of current consumers. This should be a critical step in encouraging more anticipatory investment in energy infrastructure.

However, there is still much to be done if the Government is serious about attracting the level of investment required to achieve power decarbonisation by 2035. The coming months and years are pivotal for the energy transition – we need a faster, more ambitious approach to addressing the critical barriers, maintaining political focus and ambition to meet the UK’s targets.

To achieve this, we support the Government’s focus on tackling grid issues as a barrier to the deployment of low carbon energy infrastructure. We look forward to the Government’s response to the Winser Review and the Connections Action Plan being brought forward at pace. We would also encourage the Government to act on industry recommendations to reform future CfD auctions, and so ensure the continued delivery of renewables technologies.