Electric Insights – Battery vehicles reshaping power demand, hydrogen in the UK and solar power increases worldwide

Will planning reform help the UK meet its clean power targets?

The UK faces hurdles in meeting its clean energy targets due to a sluggish planning system. Some grid connections are taking over a decade, and infrastructure build-out is threatening progress. While over 60% of the UK's electricity comes from clean sources, the country must more than double its wind, solar, and storage capacities within the next five years to meet the Government’s Clean Power 2030 targets.

Reforms such as the Planning and Infrastructure Bill and Ofgem’s Connections Reform Package aim to reduce wait times by prioritising ready projects. However, gaps still remain, and developers still face challenges like market uncertainty, supply chain constraints and local opposition. Achieving Clean Power 2030 will require not only reform but also additional policy support and clarity on investment.

Solar power increases 40%

2025 is lined up to be a record year for solar power. But this rapid increase in solar generation raises concerns over how to manage the system on sunny summer afternoons. The National Energy System Operator (NESO’s) Summer Outlook warns that transmission-level demand could fall below 13.4 GW, eclipsing the COVID-era lows. This might leave the operator no choice but to issue unprecedented “negative reserve” notices, forcing inflexible plants, such as nuclear reactors, to back off when solar floods the grid.

Greater investment in large-scale energy storage, such as batteries and pumped hydro, alongside other sources of flexibility, will be essential to managing this new wave of solar PV plants. Britain’s challenge may soon shift from making clean electricity to making room for it.

Focused roles for hydrogen in the UK

Hydrogen’s role in the UK energy transition is shifting from broad hype to focused, strategic use. While early hopes for hydrogen-powered cars and home heating have faded, it shows strong potential in two key areas: decarbonising heavy industry (like refining and fertiliser production in the Humber and Teeside) and providing long-duration energy storage to balance offshore wind variability. Although hydrogen is less efficient than batteries, it excels at seasonal storage, which is vital for the UK’s wind-based system. Falling costs, targeted government support, and policies favoring projects co-located with wind farms and salt cavern storage are helping build a viable hydrogen market. The UK’s success will depend on prioritising hydrogen only where it outperforms alternatives and turning industrial capability into export-ready, value-added products, such as green steel and low-carbon fertiliser.

Battery vehicles and heat pumps are reshaping power demand

Electric vehicles and heat pumps are transforming UK energy demand, with record sales in 2024 driven by strong policies like the Zero Emission Vehicle mandate, generous tax breaks and heat pump subsidies. EVs now make up nearly one in five new car sales, and heat pump installations surged by 63% last year, positioning the UK as a leading market in both sectors.

While the additional electricity demand from these technologies is still small overall, their impact on peak loads, especially during cold evenings, is significant. This growing strain on the grid is being addressed through smart charging rules, dynamic tariffs and rapid investment in battery storage and vehicle-to-grid technology.

Electric Insights was established by Drax to help inform and enlighten the debate on Britain’s electricity. Since 2016 it has been delivered independently by a team of academics at Imperial College London using data courtesy of Elexon, National Grid and Sheffield Solar. This report was written by third party authors external to Drax as part of the Electric Insights project. Drax and Imperial College London do not guarantee the accuracy, reliability, or completeness of this content.