Blog: Clean Power 2030 Action Plan - Opportunities and challenges for the gas sector

The plan also underscores the essential role of hydrogen, flexible technologies and energy storage in supporting this transition.

As the Central Data Service Provider for Britain’s gas industry, Xoserve is committed to its crucial role in supporting the achievement of the sector’s goals. For those of us in the gas industry, the Clean Power 2030 Action Plan offers both challenges and opportunities. As we move towards a cleaner power system, the evolving role of gas networks will be vital in ensuring stability and resilience.

Read on to explore key takeaways from the report and how Xoserve is prepared to support these policy milestones.

Key takeaways from the Action Plan

A central theme of the strategy is system flexibility, which is vital for integrating variable renewable energy sources like wind and solar. The report outlines several critical areas where the gas sector will remain relevant during this transition:

• A Low Carbon Flexibility Roadmap: In summer 2025, the Government will publish a roadmap with clear actions to drive clean power flexibility by 2030. These will include new market reforms to provide batteries and consumer-led flexibility within relevant markets. The Government also plans to consult on how grid-scale batteries could be referenced in future planning reforms, and on including grid-scale batteries within the Environmental Permitting Regulations.
• Hydrogen to power (H2P) business model: The Government intends to publish a market engagement document in spring 2025, detailing the design of the H2P business model. This marks a significant step towards integrating hydrogen as a low-carbon alternative for power generation, with potential implications for existing gas infrastructure.
• Hydrogen storage: Recognised as a cornerstone of the future hydrogen economy, hydrogen storage will play a crucial role in balancing supply and demand. However, the report acknowledges that investment challenges remain, highlighting the need for innovative financial and regulatory mechanisms.
• 35 GW of gas reserve capacity: Unabated gas will continue to serve as a backup during the transition, ensuring grid stability and security of supply. This commitment underscores the need for the gas sector to maintain operational readiness while simultaneously preparing for a low-carbon future.
• Biomethane’s potential: While biomethane isn’t explicitly detailed in the plan, it is acknowledged as a viable solution for decarbonising heat. The report says biomethane “can be used flexibly across many different end-uses – heat, power, industry, transport, agriculture and hydrogen production – and it may also be able to contribute to low-carbon dispatchable power generation”. Clearly, it remains an area of interest.
• Final Investment Decision for Net Zero Teesside: The Government has announced the final investment decision for the world’s first large-scale gas power plant with carbon capture, meant to provide secure, low-carbon power from 2028.

Implications for the gas sector

The emphasis on flexibility, hydrogen and system resilience signals a transformational shift in how the gas sector will operate. Traditional models reliant on natural gas will evolve to incorporate low-carbon alternatives such as hydrogen. Additionally, the interplay between gas and electricity networks will become increasingly crucial.

The development of hydrogen infrastructure, including production, storage and transportation, presents both technical and commercial challenges. Collaboration across sectors will be vital to ensure a smooth transition. Regulatory frameworks will need to adapt to support these emerging technologies and facilitate investment in low-carbon solutions.

Our future energy system will depend on seamless coordination between gas and electricity networks to manage supply-demand fluctuations. As highlighted in the report on page 29:

"Where renewables alone are unable to meet demand for longer periods, we will enable a suite of technologies to be deployed and maintained to provide longer-duration power capacity. This could be a combination of pumped hydro storage, first-of-a-kind low carbon dispatchable technologies like gas CCUS or hydrogen to power (H2P), or innovative technologies like liquid air energy storage (LAES).

“Whilst deploying of longer-duration technologies will help reduce unabated gas generation, we recognise the importance of gas capacity to maintain security of supply. We will see a fundamental shift in the role and frequency of unabated gas generation, moving from generating almost every day of the year, to an important backup to be used only when essential, with generation decreasing as we move towards 2030.”

Xoserve’s role in delivering Clean Power 2030

As the Central Data Service Provider for Britain’s gas industry, Xoserve is uniquely positioned to play a strategic role in supporting the UK’s clean power ambitions. We recognise that data-driven insights will be critical in enabling the transition to a low-carbon energy system. By enhancing our data-sharing capabilities and fostering stronger collaboration with stakeholders, we aim to:

• Enable advancements in low-carbon technologies: Through data and advanced analytics, we help optimise the integration of hydrogen and biomethane into existing networks, ensuring operational efficiency and reliability.
• Support investment in hydrogen infrastructure: Our expertise in managing complex energy data systems allows us to support the rollout of hydrogen projects.
• Foster cross-sector collaboration: We actively engage with gas network operators, regulators and industry partners to align efforts and accelerate progress towards shared clean power goals.

Clive Nicholas, Director of Strategy and Development at Xoserve, comments:

"The Clean Power 2030 Action Plan represents a once-in-a-generation opportunity to transform our energy landscape. By using our expertise, network and working collaboratively across sectors, we can help deliver a more sustainable, resilient and affordable energy future."

The future role of gas

The Clean Power 2030 Action Plan charts a clear course towards a cleaner, more sustainable energy future. While the focus on electrification is paramount, the continued role of gas – particularly in the form of hydrogen – cannot be overlooked. As the UK accelerates its journey towards net zero, Xoserve remains committed to supporting this transition through innovation, collaboration and data-driven solutions.

With the right partnerships and policy support, we believe the gas sector can not only adapt, but thrive in a low-carbon world. Together, we can shape a future where clean power meets the needs of all, delivering on the promise of the Clean Power 2030 Action Plan.

Get in touch

To learn more about how Xoserve supports the decarbonisation of gas, take a look at our decarbonisation knowledge centre.

If you have any feedback, questions or suggestions for our Decarbonisation Team, please email us.

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