With macro-economic challenges expected to continue into 2024, securing the investment needed to reshape the UK economy for a decarbonised, digitised future will be a priority. Continued pressure on household budgets means that careful stewardship will be needed to ensure the green agenda is not cast as a wedge issue in the upcoming general election. In this article, we consider what’s to come for the UK energy and infrastructure sector in 2024.
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5 KEY POINTS TO WATCH IN 2024:
- An important milestone will be the award of licences and financial support to the UK’s first CO2 networks and carbon capture projects, including CCS-enabled power, hydrogen, industrial and waste management plants.
- Allocation rounds will open to support the development of hydrogen transport and storage infrastructure, and further analysis will be undertaken on the requirements for a core hydrogen network.
- It is hoped that the results of contracts for difference allocation round 6 and of the Crown Estate’s floating wind Leasing Round 5 will revitalise the UK offshore wind market.
- The award of contracts for small modular reactors, Sizewell C reaching FID, and the development of plans for a further large-scale nuclear power project will give further impetus to nuclear power.
- With significant regulatory reform programmes underway, how Ofgem interprets its duties and exercises its powers will be crucial in 2024. Combined with the outcome of the Review of Electricity Market Arrangements initiative, 2024 has the potential to be transformative for the British energy market.
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