CCS launches power purchase agreement to drive public sector net zero goals

The Crown Commercial Service (CCS) has released a new commercial framework to provide central government and other public sector bodies with direct access to renewable energy via long-term, fixed-price contracts

The Provision of Power Purchase Agreement (PPA), which went live on 15 April 2025, is essential to the UK on its journey towards achieving net-zero emissions by 2050.

Secured under PCR 2015, this four-year agreement allows public sector organisations to purchase clean electricity directly from UK-based renewable energy generators, including wind and solar farms. It is the first time this kind of large-scale, fixed-price access to domestic green energy has been available to the public sector, offering a game-changing blend of sustainability, affordability, and energy security.

John Welch, Commercial Director, Estates at Crown Commercial Service, highlighted the strategic importance of the agreement:

“This new agreement represents an important step forward in our commitment to supporting public sector organisations in meeting their sustainability goals while securing predictable energy costs,” the Crown Commercial Service reported.

What are power purchase agreements?

Power Purchase Agreements (PPAs) are long-term contracts between an energy buyer and a generator,  where the buyer agrees to purchase a certain amount of power at a fixed price. These deals are significant in today’s energy market, offering budget certainty while guaranteeing a supply of clean, green electricity. The energy can come from renewable sources, including onshore and offshore wind and solar photovoltaic (PV) farms.

A response to market needs

CCS developed the agreement in response to growing demand across the public sector for accessible, reliable, and low-carbon energy. Market research highlighted the need for a simplified and transparent route to sustainable electricity procurement. This new agreement directly addresses that, offering competitive rates and fixed-term pricing options that help organisations plan more confidently.

Welch added:

“By enabling access to a UK-based renewable energy supply through long-term contracts, we’re helping the public sector reduce its environmental impact and contribute to the government’s net-zero ambitions.”

Key benefits for public sector buyers

The CCS Power Purchase Agreement framework delivers multiple advantages:

  • Direct access to UK-based renewable energy assets
  • Protection from energy market volatility
  • Streamlined procurement process, with pre-approved contract terms
  • Support for net-zero strategies
  • Improved national energy independence

Focusing on domestic renewable assets, the agreement reduces reliance on imported energy and boosts national resilience.

A win for sustainability and stability

This innovative approach does more than help organisations “go green.” It provides a secure and stable electricity supply at a predictable price, empowering public sector entities to budget more effectively while supporting the UK’s climate goals. The framework encourages innovation and investment in the renewable sector, helping drive long-term transformation.

By merging long-term value, environmental responsibility, and financial predictability. The CCS Provision of Power Purchase Agreement shows a new public sector energy procurement standard.

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UK prioritises clean energy projects in new grid connection reform

The UK is changing its electricity grid connection process to prioritise clean energy projects and create billions in private investment

These new changes are expected to be confirmed by energy regulator Ofgem and aim to accelerate access to the grid for projects that will deliver homegrown renewable power and drive economic growth.

Long waits for grid connectivity

Currently, businesses can face up to 15 years of waiting for a grid connection. Over the past five years, the queue has grown even more, creating a major halt for clean energy projects and development.

The changes will remove inactive or so-called “zombie” projects from the queue, making way for firms ready to build and aligned with the UK’s strategic energy goals.

These changes that support growth are expected to unlock around £40 billion in private investment annually. Since July 2024, £43.7 billion in private clean energy investments have been announced, a clear sign that investor confidence in the sector is growing.

Limited access to grid connectivity

One of the biggest challenges facing high-growth sectors like data centres, AI, wind, and solar power has been limited access to electricity grid connections.

New commitments to the UK’s data infrastructure alone have reached £35 billion since mid-2024. However, many projects have come to a halt due to connection delays. The reform system will prioritise these future-focused industries, fast-tracking connections and ensuring they can contribute to the UK’s clean energy transition.

The Government’s goals to improve energy security within the UK

This new approach is designed to drive investment and enhance the UK’s energy security.

By increasing access to renewable, homegrown energy, the changes will reduce reliance on volatile global fossil fuel markets. The goal is to build an energy system that lowers household bills long-term while also delivering sustainable, affordable power for homes, hospitals, electric vehicles, and emerging technologies.

The Government is also pushing forward the Planning and Infrastructure Bill to provide legislative support for Ofgem and the National Energy System Operator (NESO) to deliver the reforms.

By taking a more strategic, planned approach to grid development, the UK expects to avoid tens of billions of pounds in unnecessary grid reinforcement costs, saving billpayers an estimated £5 billion.

The Clean Power Action Plan projects that achieving clean power by 2030 will require an average of £40 billion in investment annually from 2025 to 2030. This includes £30 billion for energy generation assets and £10 billion for transmission network upgrades.

Many important projects and investments have already been announced supporting this vision.

National Grid’s Eastern Green Link 2 is British history’s largest investment in electricity transmission infrastructure. Banks and financial institutions have pledged billions toward retrofitting social housing, flexible power generation, and battery storage systems. Renewable developers, such as OnPath and Quinbrook Infrastructure Partners, also commit to large-scale solar and storage projects nationwide.

These changes the UK government is implementing show a shift in the UK’s energy strategy, making the UK a global hub for clean energy investment and innovation. By unlocking faster fair grid access, the Government hopes to drive forward its clean energy goals, strengthen national security, and lay the foundations for a more resilient and affordable energy system.

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U.S. starts testing first commercial nuclear fuel enriched above 5 percent

For the first time in U.S. history, a commercial nuclear reactor tests fuel enriched above the traditional 5 per cent threshold, marking a milestone in nuclear fuel and energy development

Southern Nuclear has begun irradiation testing of new higher-enriched nuclear fuel at its Vogtle Unit 2 reactor in Waynesboro, Georgia. This could reshape the future of nuclear power production in the United States.

What makes this fuel different?

The new fuel, developed under the U.S. Department of Energy’s Accident Tolerant Fuel Program, is enriched up to 6 per cent in uranium-235, the primary isotope used to generate energy in nuclear reactors.

This level of enrichment allows the fuel to remain in reactors for more extended periods and operate at higher power levels. This could help increase the efficiency and output of nuclear plants while reducing the amount of nuclear waste generated.

Most commercial nuclear reactors in the U.S. currently run on fuel enriched between 3 and 5 per cent. Higher-enriched fuel opens the door to longer operating cycles, extending from the standard 18 to 24 months.

This not only boosts the energy output per cycle but also minimises the number of times a reactor must be refuelled, potentially reducing maintenance-related downtime and improving overall operational efficiency.

Longer cycles, less waste

Four lead test assemblies containing the advanced fuel have been loaded into the Vogtle Unit 2 reactor for commercial testing.

These assemblies use Westinghouse Electric Company’s ADOPT® fuel pellets derived from uranium oxide powder enriched and prepared by Idaho National Laboratory. The powder was converted into fuel pellets and assembled into fuel rods before being shipped to the Vogtle site.

In addition to higher uranium-235 enrichment, the fuel pellets include special additives that enhance safety performance. These additives are designed to improve the fuel’s resistance to extreme conditions, aligning with the goals of the DOE’s Accident Tolerant Fuel Program to increase the safety margins of nuclear fuel during unexpected events.

Testing timeline

The testing phase for the lead assemblies will be over four and a half years, covering several fuel cycles. After each cycle, the fuel will be removed and examined to gather performance data. A detailed assessment will follow the completion of the full testing period, and the results will help determine the feasibility of broader commercial use of the fuel in the U.S. nuclear fleet.

If the testing proves successful, the adoption of higher enriched fuel could play a critical role in supporting the future of nuclear energy in the U.S. By allowing longer cycles, reducing waste, and enhancing power generation capabilities, this new fuel technology could provide a valuable tool in meeting growing energy demands with a reliable and carbon-free power source.

The testing at Vogtle Unit 2 represents a significant advancement for Southern Nuclear and the entire nuclear energy industry. As the demand for clean, reliable electricity continues to grow, innovations like these are essential to improving the performance, safety, and sustainability of the nation’s nuclear power plants.

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UK launches plan to train a ‘clean power army’ to deliver clean energy by 2030

The UK government has revealed a significant new plan to train thousands of young people and workers for careers in the clean energy sector, aiming to meet ambitious targets to deliver clean power across the country by 2030

As part of the Plan for Change initiative, the government will partner with industry leaders, unions, and local authorities to create a “clean power army” of engineers, welders, technicians, and other skilled workers.

This effort is key to a strategy to drive economic growth, boost energy security, and transition away from fossil fuels.

Central to the strategy is Regional Skills Pilots being launched in Aberdeen, Cheshire, Lincolnshire, and Pembrokeshire, areas identified as growth hubs for the clean energy sector.

Regional skills pilots to target key areas

These regions will receive funding to assess local needs and develop targeted training programmes. This could include new training centres, updated courses, and career advisory services focused on electrical engineering, welding, and infrastructure construction.

The transition to clean energy is expected to generate tens of thousands of jobs. National Grid has projected to support around 55,000 roles by the end of the decade, while SSE Transmission’s plans could lead to 37,000 jobs, including 17,500 in Scotland.

SP Energy Networks, part of Scottish Power, plans to double its transmission workforce, creating 1,400 jobs and supporting 11,000 across the UK. All these plans are pending regulatory approval.

The government is also investing in infrastructure to support the clean energy shift. A recent £55 million investment into the Port of Cromarty Firth aims to develop the area into a major hub for floating offshore wind, creating hundreds of skilled jobs.

Boosting the economy with clean energy

Contracts were also signed in the North East in December as part of the UK’s carbon capture, usage and storage (CCUS) programme is expected to support thousands of new jobs following a £21.7 billion commitment.

The clean energy sector is already proving to be a high-growth area.

According to CBI Economics, jobs linked to net zero initiatives grew by 10% last year. Average salaries in the sector now stand at £43,000, significantly higher than the national average.

Training to support young people and workers

To ensure young people are ready for these opportunities, the government is launching new tools such as the Your Apprenticeship app, co-designed with apprentices to give easy access to support and resources. The Skills Passport initiative will also help oil and gas workers transition to renewable roles, particularly in offshore wind.

The government’s Get Britain Working white paper, launched last year, outlines major reforms to employment support systems. This includes modernising Jobcentres, launching a Youth Guarantee to ensure every young person can earn or learn, and creating a more personalised employment service.

A new Office for Clean Energy Jobs and the recently established Skills England will coordinate efforts to align skills development with the clean energy industry’s needs over the next decade.

With the clean energy sector already contributing £83 billion annually to the UK economy, the government believes further investment and a skilled workforce can unlock an additional £40 billion in yearly investment. Apprenticeships alone are estimated to generate £25 billion in lifetime economic value.

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Government weighs nationalisation of British steel

The UK government is facing increasing pressure to intervene in the future of British Steel, with concerns growing that the company’s two blast furnaces in Scunthorpe could soon be forced to shut down due to a critical shortage of raw materials

The BBC reported that as fears mount, ministers are considering nationalisation as a potential solution that could protect thousands of jobs and secure the country’s steel production.

UK steel production at risk of stopping

The steelworks in Scunthorpe, which employ around 2,700 people, are at risk of stopping production within days unless fresh orders for iron ore and other materials are secured.

British Steel, which has been owned by the Chinese company Jingye since 2020, has warned that its operations are no longer financially sustainable, with losses of around £700,000 a day.

The company has rejected the government’s offer of £500 million in support to transition to more energy-efficient electric arc furnaces, which can’t produce the high-grade steel needed by industries like rail and construction. However, without an urgent supply of iron ore and other raw materials, production at the site is at risk of coming to a halt within weeks.

The UK Government’s response

Chancellor Rachel Reeves has reassured workers at the Scunthorpe site that nationalisation remains a viable option. She has emphasised the importance of steel production to the UK economy, especially in light of rising concerns over the impact of US tariffs on UK steel exports.

The British steel industry is facing significant challenges, with the 25% tariff imposed on American steel imports further compounding the financial strain.

The political situation is further complicated by the upcoming election for Lincolnshire’s first directly elected mayor, with several political leaders, including Nigel Farage, advocating for nationalisation to protect jobs and keep the steelworks running.

Farage has warned that without immediate intervention, the UK risks becoming the only G20 nation without primary steel production, a vital industry for national infrastructure and resilience.

The urgent need for a solution

While the government continues to explore potential solutions, including finding private-sector investment, many believe that nationalisation may be the only path forward.

Industry leaders, including the managing director of REIDsteel, a customer of British Steel, have stressed that without intervention, the shutdown of the blast furnaces would be a major blow to the UK’s steelmaking capacity.

Senior government figures, including Rishi Sunak, have stated that “all options remain on the table” to secure the future of the Scunthorpe plant. However, they have also indicated that the government prefers a commercially viable solution that minimises costs to taxpayers.

The situation at British Steel highlights bigger concerns about the future of the UK’s industrial base and its ability to remain competitive in a global market. As time runs out government officials need to find a solution that will prevent the closure of the Scunthorpe site and preserve steel production in the UK.

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UK launches AI energy council to support the nation’s AI future

The UK is taking steps to ensure its energy infrastructure is ready to support the rapid growth of artificial intelligence with its new AI energy council

On 8 April, the UK’s new AI Energy Council held its inaugural meeting in Whitehall, with experts from the energy and technology sectors coming together to discuss the power needed to drive the nation’s AI ambitions.

Using the power of AI to support energy projects

Co-chaired by the Secretaries of State for Technology and Energy, the Council hopes to impact the future of AI and energy in the UK, which will create new opportunities for economic growth and sustainable innovation.

As the UK government focuses on using AI for its economic plans, the AI Energy Council will ensure that the power required to fuel this technology is available, sustainable, and secure.

Some organisations participating in the Council are energy giants such as EDF, National Grid, Scottish Power, and Ofgem, alongside tech leaders like Google, Microsoft, Amazon Web Services, and ARM. Together, these industry experts will share their insights on meeting the growing energy demands of AI systems and data centres.

The UK increasingly focuses on clean energy sources like renewables and nuclear energy to meet its long-term energy goals. The Council will explore how these sources can be integrated into AI infrastructure, improving energy efficiency and sustainability across data centres.

One key area of focus is ensuring that AI’s energy needs are met in an environmentally responsible way, with particular importance on sustainably using resources like water.

Creating AI growth zones

One of the main parts of the UK’s strategy is creating AI Growth Zones, areas where AI development is concentrated.

These zones will have access to at least 500MW of power, enough to supply energy to around two million homes. This infrastructure will attract private investment and support the establishment of new AI-driven businesses, boosting local economies and creating thousands of new jobs.

The importance of collaboration between technology and energy sectors
This collaboration between the technology and energy sector is important as it ensures that the UK’s energy grid can accommodate the increased demand from AI.

The government is also working with Ofgem and the National Energy System Operator (NESO) to reform the country’s energy connection process. These reforms are expected to unlock more than 400GW of capacity from the connection queue, which will fast-track vital energy projects, including those needed to power large-scale AI data centres.

Along with the technical challenges, the AI Energy Council will also address concerns about the secure and fair adoption of AI across the UK’s energy infrastructure. With AI set to play a big role in transforming the energy sector, ensuring its safe and sustainable use is key. The Council aims to ensure that AI technologies benefit consumers, helping to drive down costs, improve efficiency, and enhance the overall reliability of the energy system.

The UK’s position in clean energy

By aligning AI development with clean energy solutions, the UK aims to unlock significant economic growth while advancing its climate goals.
The rapid pace of AI innovation and a strong focus on sustainability are expected to transform the UK into a hub for AI and clean energy technologies.

As the AI Energy Council moves forward, the UK is allowing itself to capitalise on the potential of AI, while ensuring that this growth is underpinned by a reliable, sustainable, and secure energy system.

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U.S. Department of Energy takes steps to accelerate AI and energy infrastructure

AI and energy infrastructureThe U.S. Department of Energy (DOE) has announced plans to boost America’s Artificial Intelligence (AI) leadership while reducing energy costs by co-locating data centres with new energy infrastructure on DOE lands

This initiative revealed through a recent Request for Information (RFI), hopes to support the growing demand for AI-driven data centres by using existing energy resources and fast-tracking the development of new infrastructure.

16 potential sites for rapid data centre development

The DOE has identified 16 potential sites across the country that are set for the rapid construction of data centres. These locations are strategically chosen due to their proximity to established energy infrastructure, which will help reduce construction time and costs.
The DOE can expedite permits for new energy generation, including nuclear energy, to ensure that the necessary power is available for these advanced facilities.

This plan aligns with the goals set by President Trump’s Executive Orders on Artificial Intelligence and Energy. These directives call for removing barriers to innovation and accelerating the development of AI and energy infrastructure in the U.S. The DOE’s new plan represents a strong effort to create public-private partnerships that can drive the growth of both industries in tandem, ensuring that the U.S. remains competitive on the global stage.

As demand for AI grows worldwide, data centres are expected to play a key role in supporting the massive computational power needed to drive AI advancements.
The DOE’s initiative aims to meet this demand by fostering collaboration between the public and private sectors to create an environment conducive to rapid innovation. The partnership between energy developers and data centre operators is key to achieving these ambitious goals.

The identified sites offer the necessary land and energy infrastructure and present opportunities for collaboration with some of the nation’s most advanced research facilities.
Co-locating data centres on DOE-managed sites will allow developers to tap into the expertise of the DOE’s national laboratories. These labs are at the forefront of energy technology research, and their involvement could help accelerate the development of next-generation data centre hardware and power systems.

Seeking industry input to refine the plan

The DOE is also seeking input from industry stakeholders, including data centre developers, energy companies, and the public, to refine the approach and ensure that the initiative meets the needs of all parties’ needs. The information collected through the RFI will help shape the development strategy for these AI infrastructure hubs, to launch the first operational centres by the end of 2027.

By tapping into its vast network of resources and expertise, the DOE hopes to help the U.S. lead the way in AI while maintaining a steady supply of affordable, reliable energy. These data centres will power AI’s growth and contribute to the nation’s energy security and long-term sustainability.

This initiative is a key part of a wider plan to use the potential of emerging technologies, and it shows the importance of collaboration between the government and private sectors in achieving national goals.

Innovation: U.S. Leadership in AI and energy infrastructure

As AI becomes an increasingly integral part of the global economy, the U.S. will remain at the forefront of this technological revolution, driving innovation and creating jobs.

The RFI is now open, and the DOE invites all interested parties to provide feedback and ideas to help shape this important project. The department is committed to ensuring that these new AI infrastructure hubs will meet the growing demands of the future while continuing to provide the energy solutions that Americans rely on daily.

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The government invests to strengthen the UK fusion energy industry

In hopes of strengthening the UK’s position as a global leader in clean energy, the government has announced a £20 million investment into the ‘Starmaker One’ fusion energy fund

This new partnership, the first of its kind between the government and private sector, hopes to unlock an additional £100 million for the burgeoning fusion energy industry.

Supporting fusion energy projects

The government’s funding will provide a strong boost to fusion businesses and start-ups, helping them to scale up and commercialise their innovative technologies.

Fusion energy, which mimics the process that powers the sun, involves combining two forms of hydrogen and heating them to extreme temperatures, releasing vast amounts of energy.

It has the potential to become a virtually unlimited and sustainable energy source. However, access to capital has caused issues with scaling up for many UK fusion companies.

The £20 million investment from the government will serve to de-risk fusion ventures and encourage private-sector investors to follow suit.

Greener global energy

The fund, managed by East X Ventures, will focus on early-stage fusion-related companies, helping them to develop important technologies and train a skilled workforce.

These efforts will span various sectors, including physics, engineering, and chemistry, and extend into industries, industrial AI, healthcare, and energy storage.

The government expects this funding to drive technological innovation and contribute to economic growth by creating thousands of skilled jobs across the UK, particularly in regions such as Nottinghamshire, Oxfordshire, and South Yorkshire.

Investing into Starmaker One

Fusion energy is expected to play a central role in the UK’s energy future, and the government is keen to ensure that the country remains at the forefront of this emerging sector.

The £20 million investment in ‘Starmaker One’ is just one part of a broader strategy to develop clean, homegrown power sources as part of the UK’s ‘Plan for Change.’ This plan aims to provide energy security, reduce reliance on fossil fuels, and accelerate the transition to a low-carbon economy.

Fusion technology to transform the energy landscape

Successful use of fusion energy could provide a reliable and clean source of baseload power, helping to meet the world’s rising energy demands while reducing carbon emissions.

The UK is well-positioned to benefit from the global fusion market, which is expected to be worth trillions of pounds in the coming decades.

The ‘Starmaker One’ fund is key to the UK government’s wider commitment to fusion energy. It follows the announcement of a record £410 million in January to support fusion research and international collaborations. The funding is expected to accelerate the development of fusion as a commercially viable energy source, with significant economic and environmental benefits for the UK.

The fusion sector has already created thousands of jobs in the UK, and this new funding initiative is expected to drive further job creation and economic activity in key regions. It is also anticipated that the development of fusion energy will help establish the UK as a hub for cutting-edge technologies in sectors ranging from magnetics and industrial AI to healthcare and transportation.

The UK is positioning itself as a global leader in this exciting and transformative technology. With the support of government and private sector investment, fusion energy could play a pivotal role in achieving a sustainable and prosperous future for the UK, while also providing the foundation for a cleaner, greener global energy market.

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