UK Energy Transition Slowed by Policy Bottlenecks

Posted on 19 June 2026

What’s happened?

We have recently mapped the clean energy auction schemes taking place in the UK. There are multiple schemes that are expected to unlock growth across energy sectors and provide certainty for several project developers. These include but are not limited to:

  • The Connections Reform - Gate 2

  • Hydrogen Allocation Round 2 (HAR2)

  • Long Duration Energy Storage (LDES) Cap and Floor Scheme

We expect these tender rounds to be instrumental to the UK’s energy transition and in reaching the goal to decarbonise the grid by 2030 is met. While these schemes also signify the UK’s commitment to reducing emissions, we highlight that long waiting times for results undermine projects.

Gate 2 projects

Gate 2 is part of the newly reformed grid connection process in the UK to provide developers in the grid queue with a confirmed connection data. This was reformed to speed up the process of connecting projects to the grid. Gate 2 is for projects that have met the requirements and strategic goals to get a connection agreement. Projects that don’t meet Gate 2 will move to Gate 1.

In June 2026, Ofgem have confirmed timelines. Under this re-baselined programme, Gate 2 connection offers would be issued on a batched basis over the course of 2026, with the final batch expected to be issued by mid-March 2027. While Ofgem have given over half of the UK projects due to come online by 2030 offers, this still leaves over 500 projects due to be commissioned by 2030 awaiting a connection decision. This uncertainty raises risks for developers.

HAR2

Hydrogen Allocation Round 2 is part of the UK’s hydrogen support scheme, offering projects a guaranteed “strike price” to help make clean hydrogen financially viable against higher emission alternatives. The second round of the scheme is in its assessment phase where 27 projects are shortlisted to receive government funding. These projects have been waiting for over a year to move forward to the next phase. SSE announced in May 2026 that they will be pausing their “standalone hydrogen production projects” with policy delays being a key contributor to this decision. This includes the Aldbrough Hydrogen Pathfinder project that was shortlisted under HAR2.

LDES

In addition, we highlight the long duration energy storage scheme, which like the HAR2 scheme, provides developers with certainty over revenue by providing a cap and floor framework to ensure that projects receive guaranteed revenues when energy prices fall below a certain level, as well as providing a cap. The scheme has shortlisted 77 projects that are eligible with results expected over the summer 2026.

Why this matters

We highlight the importance of these projects to secure clean energy and reach the government’s ambitious decarbonisation targets. Both the connections reform and LDES scheme are helping to unlock the necessary technology required to continue decarbonising the power sector with severe grid congestion. Hydrogen is also a crucial technology to decarbonise hard-to-abate sector. However, policy delays are undermining this potential.

If you are developing a project and awaiting results, please reach out to us at Mint Selection. We are an energy transition talent partner, and we can help you with the people you need to ensure you can succeed before and after auction results hello@mintselection.com

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