How will the Planning and Infrastructure Bill modernise the UK’s electricity infrastructure?

The Planning and Infrastructure Bill introduces a wide-reaching framework aimed at modernising and streamlining the UK’s electricity infrastructure. 

With clean energy and decarbonisation at the heart of the government’s long-term strategy, the bill addresses systemic inefficiencies across grid connections, long-duration electricity storage, and planning regimes while reinforcing the UK’s commitment to achieving its Clean Power 2030 and Net Zero targets. 

In this article, we set out how the bill plans to achieve this, including a reform of the UK's electricity grid connection process, a scheme to support long duration electricity storage and a community benefits scheme.

Reforming grid connections

A central focus of the Planning and Infrastructure Bill is the reform of the electricity grid connection process, which is currently overwhelmed. As of December 2024, 714GW of electricity generation and storage projects awaited connection - a figure vastly exceeding the capacity needed to meet Net Zero by 2050. The existing 'first come, first served' approach often favours speculative or slow-moving projects, creating bottlenecks that hinder ready-to-deploy developments.

In response, the bill creates a legal basis for transitioning to a 'first ready, first connected' system. It grants time-limited powers to the secretary of state and Ofgem to directly prioritise and amend connection frameworks for three years post-Royal Assent. These powers will ensure that connection decisions are aligned with strategic system planning documents, such as the Clean Power 2030 Action Plan. The National Energy System Operator and distribution network operators will be required to consider locational and technological factors in issuing new connection offers.

Long duration electricity storage

The Planning and Infrastructure Bill also establishes the legal framework for a cap-and-floor scheme to support long duration electricity storage. These technologies, capable of storing power and discharging it continuously for eight hours or more, are essential for balancing supply and demand as reliance on wind and solar increases. 

Ofgem will administer the new scheme, with applications expected to open in mid-2025 and contracts awarded in 2026. The use of long duration electricity storage is expected to unlock up to 20GW of new storage capacity by 2050, potentially saving the electricity system up to £24 billion in costs. The move addresses investor concerns around long payback periods and capital risk, providing a more stable investment environment for emerging storage technologies. 

Community benefits and other measures

Recognising the local impact of major infrastructure, the Planning and Infrastructure Bill empowers the secretary of state to deliver bill credits to households located near new onshore transmission projects. This community benefits scheme is designed to boost public acceptance and reduce opposition-related delays. This will include funding for local sports clubs and educational initiatives. Communities will receive £200,00 per kilometre of overhead electricity cable and £530,000 per substation, with some projects generating millions in local investment. 

In addition, residents living within 500 metres of any new electricity pylons will be eligible for up to £2,500 off their energy bills over ten years. 

Further technical provisions include extending commissioning periods for offshore wind assets under the Offshore Transmission Owner regime, and enabling renewable generation on forestry land. This ensures public bodies like Forestry England can contribute to net-zero goals while supporting local economies.

Taken together, the Planning and Infrastructure Bill represents a significant legislative shift designed to modernise the UK’s electricity infrastructure and accelerate the transition to a cleaner, more secure energy system.

For more information please contact our planning and infrastructure consenting team.