Britain’s energy landscape is undergoing a dramatic transformation, with the government and industry partners unveiling ambitious new plans to modernize the nation’s electricity network and tackle the looming challenges of energy storage. On August 8, 2025, the UK government announced a sweeping set of proposals designed to reward communities hosting new or upgraded electricity transmission infrastructure, while private sector innovators like EnergyPathways PLC are pushing forward with cutting-edge projects to secure the country’s energy future.
For thousands of households living near new pylons and transmission lines, the government’s latest initiative could mean a tangible reduction in electricity bills. Under proposals included in the Planning and Infrastructure Bill, households within 500 metres of new or upgraded electricity transmission infrastructure are set to receive a discount of up to £250 a year—totaling £2,500 over a decade—directly off their electricity bills. The discounts, to be provided every six months, are part of a broader effort to ensure that those who support the nation’s clean energy mission see “direct, meaningful benefits,” according to the government’s announcement.
This move is not just about lowering bills. It’s also about winning public support for the massive expansion and modernization of Britain’s electricity network. A recent study found that while 77% of consumers said new electricity network infrastructure would be acceptable in Britain, that figure dropped to 61% when respondents considered such projects in their own local areas. By offering financial incentives, the government hopes to bridge this gap and deliver on its commitment to “get Britain building again.”
Energy Consumers Minister Miatta Fahnbulleh emphasized the importance of involving local communities in the energy transition. “As we build the infrastructure we need to deliver homegrown, affordable energy, communities must be given a stake,” Fahnbulleh said. “That is why we are teaming up with communities hosting new pylons to ensure they receive direct, tangible benefits. We are on the side of those who want Britain to get back to what it does best: building for the future, driving innovation and putting communities first.”
The government’s consultation on these proposals comes as part of the Planning and Infrastructure Bill, which was introduced earlier in 2025 to remove barriers and support builders. The reforms are particularly timely: around twice as much new transmission network infrastructure will be needed by 2030 as has been built in the past decade. Rural communities stand to benefit most, as the government accelerates upgrades to the UK’s outdated electricity network.
Dhara Vyas, Chief Executive Officer of Energy UK, welcomed the announcement, noting the urgent need to expand and upgrade the country’s energy delivery system. “Much of the country’s energy infrastructure was built several decades ago and designed for a system very different from the one we have today—or the one we need in the future. Expanding and upgrading the delivery of energy to homes and businesses is long overdue and urgently needed,” Vyas said. She added that the new approach to community benefits “marks a significant step in turning the proposals in the Planning and Infrastructure Bill into reality, helping to address the cost-of-living crisis and ensuring local communities that host clean power infrastructure feel an immediate and tangible benefit.”
But while the government focuses on getting communities on board for new pylons and transmission lines, another challenge looms: how to store the vast amounts of renewable energy being generated by wind and solar farms. As intermittent renewables supply more of the country’s power, the risk of supply-demand mismatches increases. Already, surplus wind power costs households and businesses £2 billion a year in curtailment payments—a figure that could climb to £10 billion by 2030 if nothing changes, according to recent industry analyses.
Enter the Marram Energy Storage Hub, or MESH—a visionary project developed by EnergyPathways PLC and unveiled on August 8, 2025. Located 11 miles off the coast of Lancashire, MESH is designed as a multi-technology underground battery capable of storing up to 20 terawatt-hours (TWh) of energy, roughly 7% of the UK’s annual electricity demand. The facility will combine three different storage methods: natural gas, compressed air, and hydrogen, making it one of the most ambitious projects of its kind in Europe.
The first phase, known as Marram A, will repurpose depleted gas reservoirs to provide 17TWh of storage, at an expected cost of £200 million. If all goes according to plan, this segment could be operational by 2028. To put that investment into perspective, it’s about a tenth of the estimated cost to fully update Centrica’s Rough operation, a project currently bogged down in subsidy wrangling and uncertainty.
Later phases of MESH will see the construction of 20 salt caverns for compressed air and hydrogen storage, with a total hydrogen capacity of 2.8TWh and a power output of 640MW. The compressed air system will offer a 400MW capacity, providing multi-day power well beyond what’s possible with traditional battery installations. Together, these systems will eventually deliver up to 700MW of low-carbon flexible power, helping to smooth out the fluctuations inherent in wind and solar generation.
MESH has already attracted interest from investors and secured partnerships with engineering heavyweights such as Wood Group, KBR, Hazer Group, Costain, and Siemens Energy—the latter bringing experience from similar long-duration storage systems in Germany. The project will connect directly to offshore wind farms in the Irish Sea and feed into the National Grid via existing export infrastructure, tapping into the north-west of England’s growing ecosystem of energy transition projects.
Unlike lithium-ion batteries, which store electricity for minutes or hours, MESH is built for endurance. Its compressed air and hydrogen systems will allow for dispatchable generation over multiple days, with hydrogen expected to play an increasingly important role as the UK’s market matures. The salt caverns chosen for storage are chemically inert, self-sealing, and have already proven their worth elsewhere in Europe.
The benefits of MESH are threefold. First, it would bolster Britain’s energy security by reducing reliance on imported gas. Second, it would cut down on the curtailment of wind power, turning what would otherwise be wasted energy into a usable supply. Third, it would provide a reliable source of low-carbon electricity, supporting the UK’s ambitious 2030 clean power target. The system’s carbon emissions are expected to be at least 30% lower than unabated gas power, and with hydrogen decarbonization, those emissions could drop to zero.
EnergyPathways forecasts that MESH will have a 25-year lifespan, create around 500 construction jobs, and deliver an internal rate of return above 20%. The project aligns with the government’s goal of a just transition for the offshore workforce and enjoys strong political support, with ministers emphasizing the importance of domestic supply in an era of geopolitical uncertainty and unreliable European electricity imports.
As the costs of net zero begin to show up in energy bills, the pressure is on for ministers and industry leaders to deliver reliable, affordable infrastructure. While projects like MESH won’t solve every problem on their own, they offer a compelling template for how the UK can store more of its homegrown energy—rather than letting it blow away. With a combination of government incentives and private sector innovation, Britain is taking bold steps toward a cleaner, more secure energy future.
