DESNZ annual report and accounts 2025 to 2026 · first published 16 July 2026
This is the Department for Energy Security and Net Zero's (DESNZ) annual report and accounts for the financial year 1 April 2025 to 31 March 2026. It is a retrospective performance and financial report, not a procurement policy or rule change. It records what the department spent, what it achieved, and what programmes are under way or planned. The document reveals very large, multi-year spending commitments — £62.8bn capital to 2029-30, £13.2bn for the Warm Homes Plan, £8.3bn for Great British Energy (GBE) and GBE-Nuclear, and £14.2bn for Sizewell C — that will generate significant procurement activity across renewables, nuclear, carbon capture usage and storage (CCUS), home retrofit, and clean energy supply chains. A £1bn Clean Energy Supply Chain Fund and a £1bn Local Power Plan are explicitly aimed at supporting UK-based companies. SMEs in energy, construction, engineering, and green technology should treat this document as a map of where public money is flowing and align their capabilities and bid pipelines accordingly. No new procurement rules or evaluation criteria are introduced; the relevance is strategic rather than procedural.
WHO THIS APPLIES TO
THE ENKII VIEW
The scale of committed capital — particularly the £1bn Clean Energy Supply Chain Fund described as targeting "UK-based companies with high growth potential" and the £1bn Local Power Plan for locally owned clean energy projects — signals real near-term contracting opportunity for smaller firms in renewables installation, retrofit, and supply chain manufacturing. The Warm Homes Plan (£13.2bn, targeting 5 million home upgrades) is the single largest direct opportunity for SMEs in construction, insulation, heat pumps, and solar — firms should be registering with frameworks and local authority delivery partners now. The report also confirms that GBE has already deployed £255m in rooftop solar across 250 schools and 260 NHS and military sites, demonstrating an active, ongoing programme where subcontract and supply opportunities exist today.
1. Register now on relevant procurement frameworks (e.g. Crown Commercial Service, local authority retrofit frameworks) and contact your local authority and social housing providers about Warm Homes Plan delivery partnerships — the £13.2bn programme is already live and subcontract opportunities exist today.
SMEs in construction, insulation, heat pump installation, solar PV, and retrofit — all sizes — The Warm Homes Plan launched January 2026 with £13.2bn allocated, targeting 5 million home upgrades with solar, batteries, heat pumps and insulation. GBE has already deployed £255m on schools and NHS sites, showing the programme is actively contracting.
2. Apply to or monitor the £1bn Clean Energy Supply Chain Fund — check DESNZ and GBE announcements for eligibility criteria and application windows, and prepare a concise case for your growth potential and domestic supply chain contribution.
UK-based SMEs in clean energy manufacturing, components, or supply chain services — The fund was launched in December 2025 explicitly 'to support UK-based companies with high growth potential, catalysing private investment and strengthening domestic supply chains.'
3. Engage with Great British Energy's Local Power Plan — up to £1bn is available for locally owned clean energy projects on community buildings. Contact GBE or your local authority to understand how to participate as a developer, installer, or operator.
SMEs in community energy, local solar, and small-scale renewables — The Local Power Plan is 'backed by funding of up to £1bn, to help support locally owned clean energy generation projects such as solar on community buildings like libraries, leisure centres and miners' welfare clubs.'
4. Investigate the Clean Industry Bonus under the Contracts for Difference (CfD) scheme and the £1bn GBE/Crown Estate/industry offshore wind supply chain investment — identify which supply chain gaps (manufacturing, infrastructure) your firm can fill and approach tier-1 developers accordingly.
SMEs in offshore wind manufacturing, ports, and fabrication — £204m Clean Industry Bonus is designed to 'crowd in £3.4bn of private sector investment and support up to 7,000 jobs in manufacturing, factories and ports'; and GBE, The Crown Estate and industry are investing £1bn in offshore wind supply chains.
5. Monitor procurement notices from the East Coast Cluster and HyNet Cluster projects — £9.4bn has been allocated to CCUS over the Spending Review period and development funding confirmed for Acorn and Viking CCUS projects.
SMEs in CCUS engineering, civil works, or specialist services — The Spending Review allocated '£9.4bn in capital budgets over the Spending Review period to CCUS. This will maximise deployment to fill the storage capacity of the East Coast Cluster and HyNet Cluster.'
6. Register your capability with Sizewell C Limited and GBE-Nuclear supply chain teams — £14.2bn is allocated for Sizewell C and £8.3bn for GBE/GBE-Nuclear, and the report confirms nuclear is a key component of the government's long-term programme.
SMEs in nuclear construction, engineering, or specialist services — The Spending Review allocated '£14.2bn for Sizewell C' and '£8.3bn for GBE and GBE – Nuclear', with Great British Energy-Nuclear described as 'a key component of the government's approach to energy security and decarbonisation.'
7. Use the Clean Energy Industries Sector Plan and Clean Energy Jobs Plan (both published in 2025) to understand which skills and technologies government expects to invest in to 2035 — align your service offer, recruitment and training to these priorities before bidding.
All SMEs active in or entering the clean energy economy — The government is 'targeting at least a doubling of current investment levels across our frontier Clean Energy Industries to over £30bn per year by 2035' and the Clean Energy Jobs Plan sets out 'the workforce needed to deliver our clean energy ambitions' — positioning now improves bid quality later.
8. Check eligibility for the British Industrial Competitiveness Scheme, which can cut electricity bills by up to 25% for qualifying businesses — reduced energy costs improve competitiveness on bids where energy is a significant input cost.
Energy-intensive SMEs paying high electricity bills — The report states 'The British Industrial Competitiveness Scheme will also cut electricity bills by up to 25% for over 10,000 businesses.'
Every rule below quotes the official document verbatim.
DESNZ secured a capital settlement of £62.8bn from 2025-26 to 2029-30 through Spending Review 2025. (DESNZ group, all sectors, 2025-26 to 2029-30)
“Through the Spending Review the department secured a capital settlement of £62.8bn from 2025-26 to 2029-30 and a resource settlement of £5.8bn from 2026-27 to 2028-29.”
The Warm Homes Plan received £13.2bn in the Spending Review, targeting upgrades for 5 million homes including solar panels, batteries, heat pumps and insulation. (All households in England (targeted and universal offer), from January 2026 onwards)
“This included £13.2bn for the Warm Homes Plan… We launched the £15bn 'Warm Homes Plan' in January 2026, the biggest home upgrade plan in British history, to help millions of families benefit from solar panels, batteries, heat pumps and insulation that can cut energy bills.”
£8.3bn was allocated in the Spending Review for Great British Energy (GBE) and GBE-Nuclear. (Great British Energy and GBE-Nuclear, 2025-26 to 2029-30)
“£8.3bn for GBE and GBE – Nuclear”
£14.2bn was allocated for Sizewell C nuclear project. (Sizewell C project, 2025-26 to 2029-30)
“£14.2bn for Sizewell C”
£9.4bn in capital was allocated to Carbon Capture Usage and Storage (CCUS) over the Spending Review period to fill the East Coast Cluster and HyNet Cluster. (CCUS sector, East Coast Cluster and HyNet Cluster, 2025-26 to 2029-30)
“In the 2025 Spending Review, the government allocated £9.4bn in capital budgets over the Spending Review period to CCUS. This will maximise deployment to fill the storage capacity of the East Coast Cluster and HyNet Cluster.”
A £1bn Clean Energy Supply Chain Fund was launched to support UK-based companies with high growth potential and catalyse private investment. (UK-based clean energy supply chain companies, from December 2025)
“Launching a £1bn Clean Energy Supply Chain Fund last December to support UK-based companies with high growth potential, catalysing private investment and strengthening domestic supply chains”
The Local Power Plan, backed by up to £1bn, supports locally owned clean energy generation projects such as solar on community buildings. (Community and local energy projects across the UK)
“Great British Energy and government have also published the Local Power Plan, backed by funding of up to £1bn, to help support locally owned clean energy generation projects such as solar on community buildings like libraries, leisure centres and miners' welfare clubs.”
GBE has already invested £255m in rooftop solar for 250 schools and 260 NHS and military sites. (Schools, NHS sites, military sites — active programme as of 2025-26)
“GBE have already invested £255m in rooftop solar for 250 schools, and 260 NHS and military sites.”
The government is targeting at least a doubling of clean energy investment to over £30bn per year by 2035 as part of the Clean Energy Industries Sector Plan. (Clean energy industries, UK-wide, to 2035)
“the government targeting at least a doubling of current investment levels across our frontier Clean Energy Industries to over £30bn per year by 2035”
UK energy transition investment reached a record £65bn in 2025, a 32% increase in final investment decisions versus 2024. (UK energy transition sector, 2025)
“UK energy transition investment reached a record £65bn in 2025, a 32% increase in final investment decisions versus 2024 according to DESNZ analysis of the latest BloombergNEF (BNEF) data.”
The British Industrial Competitiveness Scheme will cut electricity bills by up to 25% for over 10,000 businesses. (Industrial/business electricity users, UK-wide)
“The British Industrial Competitiveness Scheme will also cut electricity bills by up to 25% for over 10,000 businesses.”
The Clean Industry Bonus under Contracts for Difference (CfD) saw £204m announced for offshore wind supply chains, expected to crowd in £3.4bn of private investment and support up to 7,000 jobs. (Offshore wind supply chain manufacturers and port/factory operators, UK-wide)
“In 2024, we announced £204m for more sustainable offshore wind supply chains through the Clean Industry Bonus. This will crowd in £3.4bn of private sector investment and support up to 7,000 jobs in manufacturing, factories and ports across Britain”
Employment in clean energy industries is expected to double to 860,000 by 2030 through the North Sea Future Plan and related programmes. (Clean energy workforce, UK-wide, to 2030)
“Through this plan, employment in clean energy industries is expected to double to 860,000 by 2030, with high quality and well-paid jobs.”
Total DESNZ group DEL spend in 2025-26 was £13,381m, with major areas including NDA (£3,078m), Sizewell C (£4,663m), affordable energy (£1,606m) and climate change/decarbonisation (£1,054m). (DESNZ group, financial year 2025-26)
“Total … £13,381m”
The National Wealth Fund has £27.8bn in capital to invest in high-impact projects including carbon capture, hydrogen, gigafactories, ports, and green steel, with at least £5.8bn allocated this Parliament. (Capital-intensive clean economy sectors, this Parliament)
“Empowering the National Wealth Fund with £27.8bn in capital to invest in high-impact, capital-intensive projects – like carbon capture, hydrogen, gigafactories, ports, and green steel – with at least £5.8bn allocated to these sectors this Parliament”
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