Infrastructure & Energy Horizon Scanner: August 2026

Industry News

Ofgem is consulting until 16 September on data centre connection reforms. The two key proposals are data centre projects above 40 MW required to secure a refundable financial commitment from grid offer acceptance until energisation; and data centre queue management milestones. The proposals will apply to both existing and future projects (unless due to energise within 6 months of the fee being introduced and/or the milestones being implemented and will apply at transmission and distribution level. For further information, see our briefing.

Water UK has responded to the Environmental Audit Committee’s ongoing inquiry into the sustainability of data centres in the UK.

United Infrastructure has been asked to create a series of standardised electricity connection archetypes designed to accelerate grid connectivity for the UK’s rapidly growing data centre sector.

The European Consumer Organisation and 12 of its member organisations have filed a complaint with the European Commission and European consumer protection authorities against several energy companies regarding alleged misleading environmental claims in the marketing of energy products. For information and advice on greenwashing and consumer protection, see here.

Academic journal The Conversation has published a paper arguing “fossil fuel companies’ deployment of renewable energy, biofuels, carbon capture and storage (CCS), green hydrogen and carbon offsetting isn’t designed to oppose decarbonisation, but to manage the conversation around renewables“. With the rising trend towards green litigation, this area is likely to be ‘one to watch’. To help protect your business, see our recent articles on climate transition planning and implementing sustainability strategies.

The Department for Energy Security and Net Zero (DESNZ), under the Starmer government, set out its proposed level for the Seventh Carbon Budget: an 87% emissions reduction target for the period 2038 to 2042, backed by the Climate Change Committee and Environmental Audit Committee. If approved by Parliament, government aims to publish a delivery plan setting out how Carbon Budget 7 will be met.

On 1 July 2026, The Climate Change Act 2008 (International Aviation and International Shipping) Regulations 2026 came into force. They bring the UK share of emissions from international aviation and international shipping into scope of UK carbon budgets and net zero targets, so that they count for the purposes of determining UK progress towards net zero.

On 7 July 2026 the Climate Change Agreements (Amendment and Revocation) Regulations 2026 were made. They come into force on 1 January 2027. They update the Climate Change Agreement (CCA) scheme, which allows eligible energy-intensive businesses to benefit from a reduced rate of Climate Change Levy (CCL) in return for meeting energy-efficiency or emissions targets. The Regulations consolidate and clarify eligibility rules and extend the scheme to three additional activities: mechanical recycling of plastic, packaging of spirits, and production of automotive-grade battery cells.

The Department for Energy Security and Net Zero (DESNZ) has published the government’s response to the October 2025 independent review of greenhouse gas removals.

The UK government has announced a £50 million investment package to strengthen domestic supply chains for critical minerals used in products such as smartphones, electric vehicle batteries and household appliances. The funding forms part of the UK’s Critical Minerals Strategy, which aims to support British companies in extracting, processing and recycling critical minerals, and to invest in cutting-edge manufacturing capability and attract private investment into the UK.

Great British Energy has published a letter to the Joint Committee on Human Rights outlining its approach to tackling forced labour, modern slavery and human trafficking in its supply chains. The letter identifies human rights risks across solar, battery energy storage systems, wind energy and its supply chains, marine vessels and the built environment. It sets out strategic objectives focused on improving supply chain visibility, strengthening collective action, diversifying high-risk supply chains and promoting a shared understanding of supply chain risk management.

The government has laid before Parliament the final proposed text of the amended National Policy Statement for Ports (NPSP). It sets the policy framework for decisions on nationally significant port infrastructure projects, including associated road and rail links, and includes a stronger presumption in favour of approving development consent orders for ports. Designation of the amended NPSP is anticipated by autumn 2026.

The Department for Transport is consulting, until 28 July 2026, on proposals for a scheme to address high electricity network upgrade costs at motorway service areas in England. An indicative £190 million has been allocated for the scheme – part of the £400 million to support EV charging infrastructure announced in the Spending Review covering 2026 to 2030.

On 17 July 2026 the European Commission published an Electrification Action Plan and proposals to reform the EU Emissions Trading System (EU ETS). The measures aim to accelerate electrification across industry, transport and buildings, reduce reliance on imported fossil fuels, lower energy costs and support industrial decarbonisation. The ETS reforms include €100 billion of support for industrial decarbonisation, continued free allocations linked to decarbonisation investment, and changes to carbon market rules aimed at improving stability and competitiveness.

Heat networks are set to play a much bigger role in the UK’s energy transition. But with more responsibility comes greater scrutiny. The sector is now operating under a new regulatory framework, with Ofgem taking on oversight and introducing new requirements for operators, developers and investors. In the latest edition of Utilities Law Review, Walker Morris’ James Blocksidge and Kyle Spivey explore: new authorisation requirements; enhanced consumer protections; continuity and resilience obligations; and the implications for investment and future growth. For businesses involved in heat networks, early planning will be key as the sector adapts to the new regime.

Back in May, the government announced funding for heat network upgrades to lower bills through energy efficiency improvements. The measures, part of the Warm Homes Plan, include £15.6 million to upgrade old and inefficient heat networks, and 4 projects in England to be given a share of £25 million for new, cleaner heating systems.

The government plans to simplify the evaluation of central government contracts. Rather than assessing suppliers against a broad range of environmental, social, wellbeing and innovation criteria, the emphasis will shift towards creating jobs and developing skills. The weighting for these benefits will also increase, rising to 20% for contracts worth £5 million or more. The government also plans to increase the relevant threshold so that rules will generally apply only to contracts above £1 million, making participation easier for smaller businesses and social enterprises. The changes are being introduced through Procurement Policy Note 026 under the existing framework of the Procurement Act 2023 and will apply to procurements from 1 January 2027.

The government’s long-awaited Defence Investment Plan has been published. Click here to find out about our expertise in the defence sector.

In this article, Ryan Doodson shares his predictions for the UK’s telecoms market over the next five years.

The Supreme Court’s awaited judgment in Star Hydro v NTDCL (a tariff dispute in connection with a Pakistani hydroelectric project) will be key for energy disputes and international arbitration generally. The dispute concerns a London-seated arbitration award in favour of Star Hydro. Rather than challenging the award in the English courts, NTDCL sought declarations in Pakistan that parts of the award were unenforceable. The key issue is whether a party can use the New York Convention proactively to obtain a declaration that an award is unenforceable before any enforcement action has been started. If the Supreme Court allows that approach, debtors may be able to launch pre-emptive challenges in multiple jurisdictions, increasing cost, delay and enforcement risk for award creditors. We’ll monitor and report on developments.

Renewables, Green Energy and Carbon Capture, Usage and Storage (CCUS)

DESNZ has published a 2026 update to its UK renewables deployment supply chain readiness study.

The EU has blocked public funding for Chinese providers of a key technology used to install solar panels and other energy infrastructure, citing security concerns. Global Banking & Finance Review has reported industry concerns that the ban could slow or even halt the rollout of solar and wind projects in poorer European countries.

The latest Energy Trends figures from the Department for Energy Security and Net Zero show that renewable electricity generation reached a record 43.7 TWh in the first quarter of 2026, up 18% on the same period last year and accounting for 53.1% of total UK electricity generation. See our recent news bulletin for further information.

Offshore Energies UK has published guidance on the integration of wind turbines into offshore oil and gas facilities to support the safe decarbonisation of offshore installations.

Liverpool Bay CCS Limited has entered into a lease with The Crown Estate for its carbon dioxide transportation and storage project. It’s a significant milestone for the UK’s first carbon capture and storage (CCS) project to repurpose existing infrastructure. The lease enables LBCCS to access the seabed and use former infrastructure to transport and safely store offshore carbon dioxide.

In May 2026, the government announced proposed reforms that would give Parliament the authority to approve major clean energy projects, which would narrow the scope of judicial reviews. The proposals classify large low‑carbon schemes, such as new nuclear power stations and offshore wind farms, as being of “Critical National Importance”, and effectively bar judicial review except on human rights grounds.

UK nuclear technology developer Rolls-Royce SMR has been selected to deliver three small modular reactors (SMRs) for a major new nuclear power project in Sweden. It’s a significant export success for British manufacturing and engineering expertise. The deal should create opportunities across the UK supply chain, as well as for future potential SMR development. For more nuclear news and an overview of the UK nuclear landscape, with a particular emphasis on private equity investment, see our recent article.

Supporting the UK’s aim to become a fusion superpower, the UK Atomic Energy Authority (UKAEA) has launched the ‘Sunrise‘ project. Funded by DESNZ, owned by UKAEA and operated by the University of Cambridge, the project is part of the UK fusion strategy 2026.

UKAEA’s UK fusion strategy 2026 covers plans from now until 2030, as the organisation pushes to harness nuclear fusion from a commercially viable standpoint. Creating net energy gain (when energy output exceeds the input) has only recently been achieved from nuclear fusion, and the world is now racing to develop and build a feasible power plant.

The UKAEA and Japan’s National Institutes for Quantum Science and Technology have signed a Memorandum of Cooperation intended to deepen cooperation on fusion energy development across: plasma science and materials; breeding blanket systems for tritium production; whole-plant engineering and integration (including robotics and autonomous systems); fuel-cycle and safety technologies; and measures to improve the commercial affordability of fusion.

Also, in relation to fusion, see below (under Construction/Development) for news on the proposed national policy statement (NPS) on nuclear fusion, EN-8.

On 13 July 2026 the UK Government’s updated Clean Flexibility Roadmap was published, reporting significant progress in its first year towards a more flexible, low carbon electricity system. This includes record battery storage deployment, support for 7.6GW of new long-duration electricity storage projects, expansion of smart meter-enabled flexible tariffs, and new measures to encourage consumer-led flexibility. The update also introduces further reforms to energy markets, network planning and hydrogen-to-power investment frameworks to help integrate more renewable energy and improve system resilience.

The latest SMMT new car registration data shows that the UK new car market increased 11.7% to 156,571 registrations in July. However, battery electric vehicle (BEV) registrations accounted for 27.4% of overall market share, remaining below the UK’s Zero Emission Vehicle (ZEV) mandate target of 33%. For our latest market insight, see here.

On 8 July 2026 the UK government confirmed the final design of the British Industrial Competitiveness Scheme (BICS), which from 2027 will exempt eligible manufacturing businesses from up to 100% of Renewables Obligation, Feed-in Tariff and Capacity Market indirect costs. Guidance will be published shortly, with the regulatory change process to follow in the Autumn and the application process open from 1 October 2026.

Waste & Resources

The European Commission has published guidance and accompanying FAQs to support the uniform implementation of the Packaging and Packaging Waste Regulation (PPWR) across the EU. The PPWR applies from August 2026. It covers all packaging placed on the EU market, regardless of material or origin.

The Environment Agency (EA) has published a national watchlist of high-priority waste sites in England, as part of the Environment Agency’s enhanced response to waste crime. The watchlist forms part of the EA’s 10 Point Plan to tackle the issue. See also our recent article on managing trespass, fly-tipping and nuisance.

On 1 October 2026, The Digital Waste Tracking (England) Regulations 2026 will come into force. These Regulations establish the first phase of a mandatory digital waste tracking service to replace the existing paper-based system. They apply to England, with the other UK nations having their own equivalent systems. The policy aims of the Regulations are to aid compliance monitoring by the Environment Agency, tackle waste crime, protect the environment and safeguard public health. The Regulations apply to businesses with an environmental permit to operate waste receiving sites, who will be required to digitally record information about waste received. It is intended that phase 2 will extend the regime to other waste industry operators, including household waste recycling centres, with waste movements digitally tracked from production through to receipt.

A report published by the House of Lords Environment and Climate Change Committee warns of increasing water stress due to climate change, population growth, public water supply leakage and new industrial demands from data centres and energy. It states that data centres, carbon capture and storage schemes, hydrogen production, new nuclear projects, and new housing are all responsible for significant volumes of water demand and place further strain on England’s water supply. Click here for advice on how we can help your business address water stress.

A UK Parliament petition calling for a binding referendum on bringing the water industry back into public ownership is scheduled for a House of Commons debate on 14 September 2026.

Dŵr Cymru Welsh Water has announced its biggest ever infrastructure investment in the next stage of its Cwm Taf Water Supply Strategy. An investment of over £ 500 million will replace aging water treatment facilities, increase water storage capacity, and strengthen the resilience of supplies. Investors, lenders and engineering partners have been invited to help shape the commercial and procurement approach before formal procurement begins.

Construction/Development and Real Estate

Various amendments to the Planning Act 2008 introduced by the Planning and Infrastructure Act 2025 came into force on 24 July 2026. These amendments affect the process of applying for, and making representations about, applications for nationally significant infrastructure projects (NSIPs). The government has published guidance explaining and supporting the changes on its National Infrastructure Planning Guidance Portal.

The government has proposed further reforms to the judicial review process for infrastructure projects, including creation of a parliamentary authorisation mechanism intended to provide a greater degree of legal certainty for a narrow category of the most critical energy projects and a challenge window mechanism to allow secretaries of state to respond in a more agile fashion to potential issues before finalising a planning consent, and limit the ability to raise other issues after the final consent was published. Further details/timescales are awaited.

The EA and Natural England have announced the launch of two analytical tools to help organisations identify where environmental, socio-economic and health pressures overlap in communities across England. The tools are intended to provide a consistent evidence base to support planning decisions, prioritise resources and inform more coordinated responses to environmental, social and health challenges.

The government has pushed through reforms to how electricity network projects will go through the planning and consenting process. The measures aim to shorten consent times, reduce administrative burdens on operators, and broaden statutory powers for electricity network providers to access land. The changes cover permitted development rights for substations, overhead lines and statutory access for existing infrastructure. See here for further information.

The Energy Security and Net Zero Committee (ESNZ Committee) is consulting on the proposed NPS on nuclear fusion, EN-8. EN-8 is intended to become the principal guide for decisions on nuclear fusion power stations in England and Wales. The consultation on the draft EN-8 was published on 8 June 2026.

The Department for Environment, Food and Rural Affairs (Defra) has published biodiversity gain statements (BGSs) that set out the biodiversity net gain (BNG) requirements for nationally significant infrastructure projects (NSIPs). The collection includes specific BGSs for NSIP development for airports, data centres, where no national policy statement has effect, energy, geological disposal, hazardous waste, national networks, ports, waste-water, and water resources. The BGSs set out how developers of NSIPs must calculate, deliver and report on BNG, which will be mandatory for new NSIP applications from 2 November 2026.

The Government’s Commercial Payments Bill has taken another step forward following amendments proposed by the House of Lords Drafting Committee. The Bill is designed to address late payment issues across UK supply chains. It includes proposals to ban cash retentions, to introduce a 60-day payment cap and mandatory interest on late payments, and to expand the powers of the Small Business Commissioner. See our news bulletin for further information.

The Law Commission has published two consultation papers proposing far-reaching changes to commercial leasehold law in England and Wales. The consultations cover modernising the 1954 Act, removing anti-avoidance barriers under the 1995 Act, and reforming first-refusal provisions in mixed-use premises under the 1987 Act. The proposals aim to produce a legal framework that better serves the needs of commercial occupiers. The consultations are open until 16 September 2026 and will be of interest to landlords and tenants operating across the industrial sector.

The UK Green Building Council has published a Whole Life Carbon Framework to help the built environment sector reduce and manage carbon emissions across the life cycle of buildings and support net-zero-aligned projects. See also our article on sustainability in the built environment and how tech can support ESG reporting.

Potentially a useful decision for landowners/developers, in Grossart v Ames, the Upper Tribunal (Lands Chamber) (UT) allowed discharge of a restrictive covenant preventing on the grounds it should be deemed obsolete (under ground (a), section 84(1), Law of Property Act 1925) because its original purpose had been fulfilled. The restriction was originally intended to preserve opportunities for future development by retaining control of the access road and services. Development of the retained land had been completed in the interim. In the case, the UT was also satisfied that discharge/modification wouldn’t cause injury to the objector and didn’t secure practical benefits of substantial value or advantage to her.

The government has issued its (interim) response setting out proposals for reforms to the EPC regime for non-residential property. It’s proposed that, from 2031, rented premises over 1,000 square metres will need to have a minimum EPC rating of B or higher. (Premises below 1,000 square metres will continue to be subject to the current minimum standard of E.)

In related news, recent research suggests energy compliance in the commercial real estate sector is slowing, raising increased concerns of stranded assets and sell-offs.

Offshore wind farms, Dogger Bank South West and Dogger Bank South, have received development consent, despite the adverse impact on birds.

Plans for a battery energy storage site on the Devon and Dorset border have been rejected, despite the council  withdrawing its objection. The planning inspector couldn’t rule out concerns about fire safety and water pollution. It’s anticipated that such concerns will likely become an increasingly key factor in planning decisions for energy infrastructure and for construction/development more generally.

In related news, the Habitats and Species (Offshore Wind) (Amendment etc.) Regulations 2026 came into force on 21 May 2026. The regulations ease Habitats Regulations to facilitate offshore wind consents. The government has published two pieces of guidance on how the new regime will operate in practice: Part 1: When and how to compensate for environmental harm; and Part 2: Compensation hierarchy and evidence required.

We’ve reported previously on various councils’ decisions to recognise the legal rights of rivers and natural resources. Continuing that trend, the House of Lords has pushed through a proposed Nature’s Rights Bill – a Private Member’s Bill that would recognise ecosystems and species as legal subjects. The aim is to transform how construction and engineering projects are planned and consented, placing nature at the centre of UK law by establishing a legal duty of care on public bodies and businesses to the natural environment. It’s one to watch.

The Construction Leadership Council has published its Mental Health Joint Code of Practice – a framework to help foster better mental health in construction.