Powering progress: What the UK’s industrial and ten-year infrastructure strategies mean for the construction of energy projects

The UK Government is fast-tracking the construction of clean energy infrastructure through sweeping reforms and investment and to achieve huge gains in a secure, affordable, and low-carbon power.

This is supported by the UK’s Industrial Strategy (IS) and Ten-Year Infrastructure Strategy (TYIS), published alongside the 2025 Spending Review, which set out a bold vision for economic growth, net zero, and regional development from now through to 2035.

For those involved in the construction of energy projects, these strategies signal a new era of opportunity and challenge. With over £725 billion in public funding in the TYIS, streamlined planning, and a focus on clean energy, the construction sector is at the heart of delivering the UK’s ambitions as set out in the two strategies.

Here, we explore the key changes, what they mean for construction professionals, and how to prepare for the decade ahead.

A new landscape for energy construction

The IS and TYIS are designed to transform the UK’s economic and infrastructure landscape. Eight priority sectors - including clean energy industries and advanced manufacturing - are identified as growth engines for the next decade in the IS. Construction is the common thread running through these ambitions, especially for energy projects that underpin net zero targets and energy security. The IS identifies wind energy, nuclear (fission and fusion) hydrogen, carbon capture utilisation and storage (CCUS) including greenhouse gas removals and heat pumps as priority industries.

The TYIS, delivered by the new National Infrastructure Service and Transformation Authority (NISTA), aims to provide long-term certainty for investors and developers. It introduces a holistic approach to planning and delivering major projects, with a particular focus on clean energy infrastructure. And it will be updated every two years to establish national spatial priorities, keeping it up-to-date and agile.

What are the key announcements for energy project construction?

The updated strategies introduce additional tools and reforms intended to facilitate the construction of energy projects aligned with the Government's Clean Energy Superpower objectives: reducing emissions in the energy sector by 2030 through the Clean Power 2030 Action Plan, and reaching net zero by 2050. Key changes include:

1. Streamlined planning and digital tools
   The TYIS introduces a Digital Infrastructure Spatial Tool, integrating data and planning across government levels - central, regional, and local. For construction, this should mean faster site identification, reduced bottlenecks, and more predictable project timelines - especially for energy infrastructure like wind farms, grid connections, and battery storage.
2. Grid connection reform
   A new Connections Accelerator Service will speed up the process for connecting new energy projects to the grid. This is crucial for construction timelines, as grid delays have historically been a major barrier for renewable and low-carbon projects. In addition, this means more construction opportunities in modernising the grid itself in the race for decarbonisation.
3. Innovative finance models
   The TYIS considers the return of Public Private Partnerships (PPP) for major infrastructure for example for heat networks, alongside funding from Great British Energy (GBE), the National Wealth Fund (NWF), and the British Business Bank (BBB). Further financing options to promote energy projects include Corporate Power Purchase Agreements (PPAs) and a proposal to launch a new Strategic Investment Opportunities Unit within the Office for Investment (OfI). The new Unit will partner with local authorities, government departments and wider public organisations to identify, shape, and deliver strategic projects with significant scope for private capital and investor interest. For construction firms, this means more opportunities to participate in large-scale, long-term energy projects with diverse and more certain funding sources.
4. Regional investment and supply chains
   Investment Zones and Industrial Strategy Clusters will receive targeted funding and streamlined planning support. Construction businesses in regions like North East Scotland, North East England, South Yorkshire, the East Midlands and West Midlands will benefit from £160 million in new investment over ten years, with a focus on local supply chains and skills.
5. Decarbonising the built environment and infrastructure
   The TYIS emphasises decarbonising public estates, scaling up local renewable generation, and improving sustainability in infrastructure. Construction companies will be key partners in delivering low-carbon heating, energy-efficient retrofits, and nature-based solutions.

What are the benefits for the construction of energy projects?

Along with diverse funding sources, developers of energy projects will see multiple benefits from the announced measures, such as:

• Certainty and pipeline visibility - the TYIS infrastructure pipeline provides real-time updates on over 780 planned projects, offering unprecedented visibility for construction firms to plan, invest, and bid for work.
• Skills and workforce development - the Clean Energy Workforce Strategy (launching in 2025) and regional partnerships will help build a skilled construction workforce, diversify supply chains, and support local businesses.
• Regulatory simplification - the UK government is progressing specific regulatory changes to support the strategies. For example, consultations on expanding permitted development rights and updating planning guidance will make it easier to deliver new energy infrastructure, reducing delays and costs.
• Innovation and digitalisation - the use of AI and smart data in planning and project delivery will drive efficiency, improve outcomes, and open new opportunities for tech-savvy construction firms.

What next for energy developers?

Energy developers can begin to take action now to make the most out of available opportunities arising from the government's two strategies. For example, they can:

• Engage with regional initiatives: Promote regional growth. Strengthen supply chains and empower communities sit at the heart of the strategies. Connect with local authorities including Mayoral Strategic Authorities and communities, Investment Zones, and Industrial Strategy Clusters to access funding, support, and partnership opportunities for energy projects.
• Invest in digital transformation: Adopt digital skills and tools to take advantage of new planning platforms and data-driven decision-making.
• Focus on sustainability: Position their business to deliver low-carbon, energy-efficient projects. Explore opportunities in retrofitting, renewable energy, and nature-based solutions, and get up to speed with mitigating adverse impacts of projects for example, by understanding the Nature Recovery Fund proposal.
• Monitor the infrastructure pipeline: Stay informed about upcoming projects and investment opportunities via NISTA’s pipeline tool.

Most importantly, pay close attention to the UK Government’s evolving energy strategies and track their progress carefully - being informed and prepared will position you to promptly seize emerging opportunities now and in the years ahead.