📋 Ministerial Foreword
The United Kingdom's path to clean power by 2030 depends not only on ambition but on delivery speed. Every month that a viable clean energy project waits for a grid connection is a month of lost generation, lost jobs, and continued dependence on imported fossil fuels. Grid connection delay is now the single biggest constraint on renewable deployment in this country.
This proposal sets out a practical, nationally significant response to that constraint. The UK's hydroelectric reservoirs and managed water bodies are already connected to the national grid. They have the infrastructure, the land rights, and, in many cases, the operational teams to support co-located energy generation. By deploying publicly owned floating photovoltaic installations on these sites, we can accelerate clean power delivery at scale without waiting years for new grid infrastructure to be built.
Public ownership through GB Energy ensures that the revenue from this generation returns to the public rather than private shareholders. It ensures that the communities living alongside these reservoirs see genuine local benefit. And it ensures that the assets built today continue to generate public value for the thirty years of operational life ahead of them.
The case set out in this document is grounded in evidence. Research commissioned by Bluefield Partners and produced by CBI Economics identifies up to 58.6 GW of floating solar potential across the UK by 2050 under an ambitious policy scenario, equivalent to the UK's entire current offshore wind fleet. The moderate scenario projects 18.3 GW by 2040, equivalent to the output of approximately eleven large gas power stations. These are not speculative projections. They are the product of rigorous analysis of the UK's actual water body inventory and grid proximity data.
There is an additional dimension to this proposal that goes beyond energy. Floating solar installations reduce reservoir evaporation by up to 70 per cent. In a country where water stress is increasing and per capita freshwater availability is already below the European average in many regions, that is a meaningful co-benefit. This proposal is, at its core, about building dual resilience, energy security and water security, delivered through the same publicly owned infrastructure.
The opportunity is clear. The technology is proven. The delivery pathway exists. What is required now is a decisive policy commitment to act on it.
1. Executive Summary
This document proposes that the UK Government direct GB Energy to develop publicly owned floating photovoltaic (FPV) installations on existing hydroelectric generation sites and managed reservoirs. By co-locating floating solar with sites that already have active grid connections, the proposal eliminates the primary delivery constraint affecting solar deployment across the country.
The UK holds approximately 65,000 hectares of water industry and man made water bodies suitable for floating solar, with a further 47,500+ hectares of freshwater assets within 5 kilometres of urban areas. Independent analysis by CBI Economics identifies deployable capacity of 8.9 GW by 2030 and 58.6 GW by 2050 under an ambitious policy scenario, generating over £30bn in cumulative GVA and supporting an average of 15,000+ FTE jobs annually between 2027 and 2050.
The proposal relies on three existing policy levers, GB Energy's £5.3bn multi year capitalisation programme, the Contracts for Difference mechanism (currently open under Allocation Round 8), and Permitted Development Rights reform for water industry sites. No new primary legislation is required to begin delivery.
The proposal delivers:
- Accelerated clean power deployment by removing grid connection delay as a bottleneck
- Higher generation efficiency through water cooling of panels (approximately 10-15% above ground mounted equivalents)
- Reduced reservoir evaporation of up to 70%, supporting UK water security
- No land use competition with agriculture or protected landscapes
- Long term public revenue through GB Energy ownership, retained in the public interest
- Progress toward Clean Power 2030 and Net Zero 2050 targets
2. Alignment With Existing Government Strategies
This proposal reinforces, rather than creates, policy objectives. It draws on existing institutional frameworks, established delivery mechanisms, and publicly funded programmes already in operation. The key areas of strategic alignment are set out below.
Clean Power 2030 Target
- Directly adds gigawatt scale renewables to the generation mix
- Exploits existing grid connections to accelerate delivery pace
- Supports the Government's core energy mission
Great British Energy Act 2025
- FPV on reservoirs is precisely the class of project GB Energy was created to develop
- GB Energy's £5.3bn capitalisation (2025-26 to 2029-30) provides the funding vehicle
- Consistent with GB Energy's mandate to develop, invest in, build, own, and operate clean energy projects
Net Zero Strategy (2021)
- Expands renewable generation without new fossil fuel dependency
- Contributes directly to the decarbonisation of electricity supply
- Supports long term 2050 net zero commitments
British Energy Security Strategy (2022)
- Increases domestic low carbon generation
- Reduces dependence on imported fossil fuels and exposure to global gas price volatility
- Strengthens national energy resilience
Water Industry National Environment Programme
- FPV reduces reservoir evaporation by up to 70%, supporting water security
- Co-benefits align with statutory water company obligations on resilience
- Supports climate adaptation objectives within water sector regulatory frameworks
National Planning Policy Framework
- FPV on man made water bodies avoids green belt and agricultural land concerns
- Permitted Development Rights reform for water industry sites removes a key planning bottleneck
- Consistent with NPPF's support for renewable and low carbon energy
The proposal does not require new institutional architecture. GB Energy exists. The CfD mechanism exists. The water body inventory is documented. What is required is a specific policy direction linking these elements together.
3. Context and Rationale
3.1 The Scale of the UK's Floating Solar Opportunity
The United Kingdom holds a significant and largely untapped floating solar resource. A 2024 analysis by CBI Economics, commissioned by Bluefield Partners, assessed the UK's inventory of suitable water bodies and modelled deployment scenarios under varying policy conditions.
The key resource figures are:
- 65,000 hectares of water industry and man made water bodies identified as technically suitable for FPV installation
- A further 47,500+ hectares of freshwater assets located within 5 kilometres of urban centres, offering advantageous grid proximity and proximity to demand
Under a moderate intervention scenario, this resource could support 3.6 GW by 2030, 18.3 GW by 2040, and 40 GW+ by 2050. Under an ambitious scenario, 8.9 GW is deployable by 2030 and 58.6 GW by 2050, comparable to the UK's entire current offshore wind fleet.
The 18.3 GW moderate scenario for 2040 is equivalent to the output of approximately eleven large UK gas power stations. This is not a marginal contribution. It is a strategic scale addition to the generation mix.
3.2 Grid Connection as the Primary Delivery Bottleneck
Grid connection delay is the most significant practical obstacle to solar deployment in the UK. Projects can wait four to eight years for a confirmed grid connection agreement. This creates a structural inefficiency, technically viable projects are stranded in the connection queue while demand grows and net zero targets advance.
Hydroelectric sites and managed reservoirs operated by water utilities are, by definition, already connected to the grid. These sites draw and export electricity as part of normal operations. Co-locating floating solar at these sites requires no new grid infrastructure, it requires only a connection augmentation or a shared point of connection, both of which can typically be arranged within existing connection frameworks.
This is the defining strategic advantage of the proposal. The grid constraint that delays conventional solar projects by years is absent. Deployment can proceed on a construction timeline rather than an infrastructure queue timeline.
3.3 Technical Performance and Co-Benefits
Floating solar is not merely a planning workaround. It delivers measurable performance advantages over ground mounted equivalents.
Water proximity keeps panel temperatures lower than ground mounted systems. Studies across multiple climatic conditions confirm annual energy yield gains of 10-15% for floating systems over comparable land based installations. At Japan's Yamakura Dam, panels consistently ran 10–15°C cooler than nearby land arrays, producing 13% higher annual output.
FPV installations also shade the water surface, substantially reducing evaporative loss from reservoirs. Depending on panel coverage and tilt configuration, evaporation reductions of up to 70% have been recorded. For UK water companies facing increasing water stress obligations, this represents a direct operational benefit with quantifiable value under regulatory frameworks.
3.4 The Current Policy Gap
Despite growing industry investment and ministerial statements of support, including by the Minister for Energy in the Department for Energy Security and Net Zero, who stated in 2024 that "for too long, we have failed to harness the huge potential of our reservoirs for floating solar", no dedicated public ownership programme exists for FPV on reservoir sites. The CfD mechanism supports floating solar in principle, but without a publicly owned programme designed around the grid connected reservoir estate, deployment has remained fragmented and privately led.
This proposal addresses that gap directly.
4. Proposal Overview
The proposal creates a structured programme of publicly owned FPV development, delivered through GB Energy, targeted at the grid connected hydroelectric and reservoir estate. It uses existing policy mechanisms, requires no new primary legislation to begin, and generates long term public revenue from assets that would otherwise remain underutilised for clean energy purposes.
4.1 Objective
To direct GB Energy to develop, own, and operate floating photovoltaic installations on existing hydroelectric generation sites and managed reservoirs across the UK, with priority given to sites already connected to the national grid, delivering.
- Clean power at pace, free from the grid connection queue that delays conventional solar projects
- Long term public revenue through public ownership of generation assets
- Dual energy and water security benefits through reduced reservoir evaporation
- Contribution to the Clean Power 2030 target and Net Zero 2050 commitments
- Deployment of up to 8.9 GW by 2030 under the ambitious scenario
4.2 Mechanism
The delivery mechanism draws on three existing instruments. No new legal framework is required to begin the programme, though secondary legislation to extend Permitted Development Rights would accelerate delivery pace and should be pursued concurrently.
1. GB Energy capital programme
DESNZ directs a designated tranche of GB Energy's £5.3bn multi year capitalisation to fund FPV development on the hydroelectric and reservoir estate. GB Energy acts as developer, owner, and operator of installed capacity.
2. Site identification and prioritisation
GB Energy, working with water utility operators and Ofwat, identifies and ranks priority sites by installed grid connection capacity, reservoir surface area, proximity to demand centres, and planning status. Hydroelectric reservoirs with existing generation connections take first priority.
3. CfD revenue support
Individual FPV installations apply to the Contracts for Difference mechanism under existing Solar PV (>5 MW) eligibility. GB Energy retains the contracted revenue stream, with surplus revenue returned to the Treasury or reinvested in further clean energy capacity.
4. Permitted Development Rights extension
DESNZ introduces a statutory instrument extending Permitted Development Rights to cover FPV installations on water industry sites and man made water bodies, removing the need for individual planning applications on the majority of target sites.
5. Long term public operation
Assets are owned and operated by GB Energy throughout their operational life (25–30 years). Revenue is retained in the public interest. Operational data is published annually to enable Parliamentary and public scrutiny.
5. Financial Case
This section sets out the financial structure of the proposal, including the existing funding landscape within which GB Energy operates, the cost profile of FPV deployment, and the revenue potential associated with publicly owned generation at scale.
5.1 Current Spending Profile
GB Energy's multi year capitalisation scheme, approved in principle by DESNZ and assessed by the Subsidy Advice Unit, provides up to £5.3 billion over the four year period from financial year 2025–26 to 2029–30. This capitalisation is designed to fund project development and investment, supply chain support, and community energy partnerships.
The floating solar programme proposed here does not require additional public spending beyond existing commitments. It requires a specific allocation within the GB Energy capital budget, directed at the reservoir and hydroelectric estate as a priority asset class.
GB Energy Capitalisation and Relevant Clean Energy Spending
| Programme | Value | Relevance to This Proposal |
|---|---|---|
| GB Energy Multi Year Capitalisation (2025-26 to 2029-30) | Up to £5.3bn | Primary funding vehicle for FPV capital investment |
| GB Energy Local Power Plan | Up to £1bn | Community scale FPV on public sector water sites |
| GB Energy Supply Chain Fund (Pillar 1) | £300m | FPV component manufacturing and domestic supply chain development |
| CfD AR8 Pot 1 Budget (Solar PV & Onshore Wind) | £295m revenue support | CfD contracts for FPV installations above 5 MW |
| Total available envelope | ~£6.9bn+ | Sufficient to fund the ambitious 2030 scenario without new spending |
5.2 Cost Profile
FPV installation costs have fallen materially over the past decade and continue to converge with ground mounted solar. The current cost premium over ground mounted systems reflects the additional structural requirements of floating platforms and is expected to reach parity by 2030 under the ambitious policy scenario, or by the mid 2030s under central assumptions.
Floating Solar Cost Profile and CfD Parameters
| Parameter | Floating Solar (FPV) | Ground Mounted Solar |
|---|---|---|
| CfD Administrative Strike Price | £106/MWh | £75/MWh |
| Expected Cost Parity | 2030 (ambitious scenario) / mid 2030s (central scenario) | |
| Generation Efficiency Premium | +10-15% over ground mounted | Baseline |
| CfD Contract Duration (AR8) | 20 years, CPI indexed | |
| Grid Connection Cost | Low (co-location with existing connection) | High (new connection typically required) |
| Asset Life | 25–30 years | |
The grid co-location advantage materially reduces the total cost of deployment. Grid connection costs for new solar projects typically represent 10–20% of total project expenditure. For FPV at existing hydroelectric sites, this cost approaches zero. This narrows the effective cost gap between FPV and ground mounted solar substantially, even before cost parity is achieved on platform manufacturing.
5.3 Revenue Potential
Public ownership through GB Energy ensures that generation revenue is retained in the public interest rather than distributed to private shareholders. Under the ambitious scenario:
- Cumulative GVA potential exceeds £30bn across the deployment period to 2050
- Annual employment supported averages 15,000+ FTE between 2027 and 2050
- By 2050, operational activities alone sustain 16,000+ permanent jobs
- CfD contracts provide a stable, CPI indexed revenue stream for 20 years per installation, enabling accurate long term public balance sheet treatment
Surplus revenue beyond operating costs and debt service, where GB Energy has used external finance alongside its capitalisation, flows to the Treasury for reinvestment in further renewable capacity or public services.
6. Value for Money Statement
This Value for Money assessment has been conducted in accordance with HM Treasury's Green Book guidance on appraisal and evaluation in central government. The assessment considers the economic, fiscal, and social returns associated with publicly owned FPV deployment across the UK's existing reservoir and hydroelectric estate.
This assessment follows HM Treasury's Green Book guidance on appraisal and evaluation in central government.
Strategic Case
- Addresses a clearly identified market failure, private developers face grid connection queues that public co-location eliminates
- Public ownership captures returns that would otherwise accrue to private investors, delivering intergenerational public value
- Consistent with government's stated objectives on clean power, energy security, and water resilience
Economic Case
- Grid co-location eliminates 10-20% of typical project capital cost
- 10-15% generation efficiency premium over ground mounted solar improves revenue per MW installed
- Evaporation reduction generates quantifiable water security value for regulated water companies
- Avoided grid reinforcement costs represent wider social benefit not captured in project level appraisal
Benefit Cost Ratio Considerations
- Capital source: Existing GB Energy capitalisation (no new public spending required)
- Revenue stream: 20 year CPI indexed CfD contract plus post contract merchant revenue
- Cumulative GVA: £30bn+ under ambitious scenario
- NPV: Strongly positive over 25 year asset life, given near zero grid connection cost and efficiency premium
- BCR: Expected to exceed 2:1, consistent with GB Energy's mandate to deliver value for UK taxpayers and bill payers
Counterfactual
- Without intervention reservoir estate remains unproductive for clean energy, private FPV deployment proceeds slowly without grid co-location advantage, deployment bottleneck persists
- Public cost of inaction is continued dependence on gas generation, missed Clean Power 2030 contribution, lost GVA and employment
7. Impact Assessment
This section sets out the expected economic, equality, and environmental impacts of the proposal. The assessment has been conducted in line with HM Treasury Green Book guidance and standard departmental appraisal methodologies. Impacts have been assessed against the counterfactual of no dedicated public FPV programme.
7.1 Economic Impacts
Costs
Economic Impact Assessment - Costs
| Category | Estimated Impact | Notes |
|---|---|---|
| GB Energy capital allocation for FPV programme | Within existing £5.3bn envelope | No new public spending required |
| CfD revenue support (above market reference price) | Moderate during build phase, reduces as costs converge with ground mounted solar | Passes through to consumer bills via existing levy mechanism diminishes post parity |
| DESNZ administrative costs (programme management) | Low | Absorbed within existing departmental resource |
| PDR secondary legislation | Negligible | Minor drafting and consultation cost |
Benefits
Economic Impact Assessment - Benefits
| Category | Estimated Impact | Notes |
|---|---|---|
| Cumulative GVA | £30bn+ to 2050 | Ambitious scenario, CBI Economics / Bluefield analysis |
| Employment | 15,000+ FTE annually (2027-2050), 16,000+ permanent operational jobs by 2050 | Ambitious scenario includes construction, installation, operations, and supply chain |
| Long term public revenue (GB Energy ownership) | High | Revenue retained in public interest for 25-30 year asset life |
| Avoided grid reinforcement costs | High | Grid co-location eliminates typical 10-20% project cost attributable to new connections |
| Reduced dependence on imported gas | High | 18.3 GW by 2040 displaces output equivalent to ~11 large gas power stations |
| Water security value (evaporation reduction) | Medium-high | Quantifiable benefit to water companies under regulatory frameworks, reduces treatment and abstraction costs |
| Supply chain and domestic manufacturing | Medium | GB Energy Supply Chain Fund can target FPV component manufacturing |
7.2 Equality Impact Assessment (EqIA)
An Equality Impact Assessment has been conducted to determine whether the proposal has differential effects on individuals or groups with protected characteristics as defined under the Equality Act 2010. The assessment considered impacts across the nine protected characteristics, age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.
Positive Impacts
- Income and socioeconomic status (indirect): Lower wholesale electricity prices associated with increased renewable generation benefit all bill payers, with proportionally greater benefit to lower income households who spend a higher share of income on energy. This is not a protected characteristic under the Equality Act 2010, but represents a significant positive distributional effect.
- Disability: Reduced energy costs benefit disabled people, who are statistically more likely to require energy intensive medical equipment and heating at home.
- Age: Older residents, who are more likely to be at home during the day and more likely to be on fixed incomes, benefit from reduced energy price volatility.
- Race and geography: Employment generated in rural and semi rural reservoir communities supports areas with limited economic diversification, benefiting residents of all protected characteristics in those regions.
Neutral Impacts
- No differential impact on protected characteristics has been identified in the design or operation of the FPV programme itself.
- GB Energy's public procurement obligations require non-discriminatory tendering and supply chain engagement.
Negative Impacts
- None identified.
7.3 Environmental Impacts
The environmental case for FPV on reservoir sites is substantially positive. The proposal generates clean electricity without land conversion, reduces greenhouse gas emissions from avoided fossil fuel generation, and delivers water security co-benefits.
Positive
- Gigawatt scale renewable generation with near zero operational carbon emissions
- Significant carbon emissions avoided through displacement of gas generation
- No agricultural land conversion, no habitat displacement on land
- Reduction in reservoir evaporation of up to 70%, supporting water availability and reducing abstraction pressure on aquatic ecosystems
- Shading effect on reservoir surfaces may reduce algal bloom risk in some settings
Potential Negative Impacts (Managed)
- Changes to light penetration and thermal stratification in reservoirs may affect aquatic habitat. Mitigation, Environmental Impact Assessment required for individual sites above threshold size, panel coverage ratios to be specified by DESNZ guidance to limit sub surface light reduction.
- Visual impact on reservoir landscapes. Mitigatio, Site selection criteria to exclude reservoirs within National Parks, AONBs, and National Landscapes unless exceptional circumstances apply.
- Disruption to bird activity on and around reservoirs during installation. Mitigation, Installation windows to avoid nesting season, site level ecological surveys required.
Net Environmental Assessment
The net environmental impact is substantially positive. The managed negative impacts are site specific, temporary or limited in scale, and addressable through existing environmental assessment and planning conditions. The scale of clean generation delivered and the water security co-benefits outweigh residual risks where appropriate site selection criteria are applied.
8. Distributional Analysis
The proposal has been assessed for its distributional effects across households, businesses, regions, and generations. The analysis indicates that benefits are broad based and that the programme's structure, public ownership, co-location with existing infrastructure, and rural site concentration produces particularly positive outcomes for groups and communities that have historically derived limited benefit from private renewable investment.
Households
- Lower wholesale electricity prices as clean capacity displaces marginal gas generation
- Greater resilience to global gas price volatility
- Lower income households benefit most from reduced energy cost as a share of income
Businesses
- Energy intensive industries benefit from downward pressure on wholesale electricity prices
- Water utilities benefit from reduced evaporative losses and potential cost savings on abstraction and treatment
- Domestic FPV manufacturing and installation supply chains supported by GB Energy procurement obligations
Regions
- Employment generated predominantly in rural and semi rural locations hosting reservoir and hydroelectric infrastructure, including Wales, Scotland, Northern England, and the South West
- Supports economic diversification in areas with limited industrial employment
- Consistent with levelling up and regional growth objectives
Future Generations
- Publicly owned assets generating clean power and public revenue for 25-30 years per installation
- Contribution to Net Zero 2050 commitments reduces long term climate adaptation costs borne by future generations
- Water security benefits from reduced evaporation support long term freshwater availability
9. Risks and Mitigations
The risks set out below have been assessed in line with standard government risk methodology, considering likelihood and potential impact. Each risk is accompanied by a specific mitigation measure. The overall risk profile of the programme is considered moderate, with the principal risks concentrated in site level environmental assessment timelines and the pace of PDR reform.
Risk Assessment Matrix
| Risk | Likelihood | Impact | Mitigation |
|---|---|---|---|
| PDR reform delayed by legislative programme pressure, extending planning timelines for individual sites | Medium | Medium | Site selection to prioritise locations already eligible under existing permitted development provisions, full planning application pathway maintained in parallel for larger sites |
| Grid connection augmentation costs higher than anticipated at some hydroelectric sites | Low–Medium | Medium | Detailed site surveys prior to capital allocation, GB Energy to commission connection studies in advance of final investment decisions |
| Ecological assessment requirements extend pre construction timelines at specific sites | Medium | Low–Medium | Environmental baseline surveys commissioned alongside site identification, exclusion criteria applied to sites with high ecological sensitivity |
| CfD strike price above market reference price prolongs consumer levy burden if cost parity is delayed beyond 2030 | Low–Medium | Low–Medium | GB Energy's grid co-location advantage materially narrows effective cost differential, CfD budget envelope reviewed annually by DESNZ |
| Water company operator resistance to co-location arrangements on operational reservoirs | Low | Medium | Regulatory guidance from Ofwat clarifying duty on water companies to cooperate with public clean energy programmes, financial benefit of evaporation reduction to be quantified and attributed to water company balance sheets |
| Supply chain constraints on FPV platform and panel manufacturing delay installation programme | Medium | Medium | GB Energy Supply Chain Fund (£300m) directed in part toward FPV manufacturing capacity, phased deployment programme allows supply chain to develop ahead of later phases |
| Political and planning opposition in high amenity reservoir locations | Low | Low | Site selection criteria to exclude National Parks, National Landscapes, and AONBs unless exceptional energy security justification applies, community benefit fund attached to each installation |
10. Governance and Accountability
Effective governance of this programme requires clear lines of accountability between the policy sponsor, the delivery body, Parliament, and the public. The framework set out below draws on existing institutional roles and statutory obligations.
10.1 Lead Department
The Department for Energy Security and Net Zero (DESNZ) is the accountable department for this proposal. The Secretary of State for Energy Security and Net Zero holds policy ownership and is responsible for setting the strategic direction for GB Energy under the Great British Energy Act 2025. DESNZ is responsible for any secondary legislation required to extend Permitted Development Rights and for GB Energy's CfD eligibility framework.
10.2 Delivery Body
Great British Energy is the designated delivery body. As the UK's publicly owned clean energy company, GB Energy has the statutory mandate, capitalisation, and operational capacity to develop, own, and operate FPV installations. GB Energy will be responsible for:
- Site identification, feasibility assessment, and prioritisation
- Capital deployment and project development
- Procurement of installation contractors in accordance with public procurement obligations
- Long term operations and maintenance
- Annual performance reporting to DESNZ and the public
10.3 Parliamentary Oversight
The Energy Security and Net Zero Select Committee will have oversight of the programme through its existing scrutiny role over DESNZ and GB Energy. GB Energy's annual report and accounts are laid before Parliament and subject to scrutiny. The Secretary of State will provide a written ministerial statement to Parliament within twelve months of programme commencement, setting out progress against deployment targets.
The Public Accounts Committee (PAC) will have scrutiny rights over programme expenditure and value for money outcomes, supported by NAO audit work.
10.4 National Audit Office Review
The National Audit Office (NAO) will conduct a value for money review of the programme no later than three years after programme commencement. The review will assess whether GB Energy's FPV deployment has delivered the capacity, revenue, and cost outcomes projected in this document. Findings will be reported to the PAC in the normal manner.
10.5 Transparency Obligations
GB Energy will publish annual data on installed FPV capacity by site and region, generation output, revenue received, employment supported and evaporation reduction measured at instrumented reservoir sites. This data will be published in open, machine readable format consistent with HM Government's transparency commitments.
11. Public and Stakeholder Engagement
11.1 Scope of Consultation
Before a formal GB Energy FPV programme is launched, a public and stakeholder consultation should be conducted by DESNZ. The consultation is intended to test the policy design, identify operational and planning concerns, gather evidence on site suitability from water sector operators, and ensure that communities living alongside target reservoirs have a meaningful opportunity to engage.
The consultation should be open for a minimum of twelve weeks. It should be directed at the following stakeholder groups:
- Water utility companies and their trade body (Water UK)
- Ofwat and the Environment Agency
- Local planning authorities in areas hosting candidate sites
- The renewable energy industry and FPV developers
- Environmental and conservation organisations
- Community and parish councils in proximity to candidate reservoir sites
- Members of the public, via the standard digital consultation platform
11.2 Consultation Questions
The following consultation questions are proposed for the formal engagement process:
- Do you agree that public ownership of floating photovoltaic installations on the UK's existing reservoir and hydroelectric estate represents an appropriate use of GB Energy's capitalisation mandate? Please provide reasons for your view.
- Are the proposed site prioritisation criteria, existing grid connection, reservoir surface area, proximity to demand, and planning status, the right basis for sequencing deployment? Are there additional criteria that should be applied?
- What are the most significant practical barriers to co-locating FPV installations on operational reservoir sites, and how should those barriers be addressed through policy, regulation, or guidance?
- Is the proposed extension of Permitted Development Rights to water industry sites and man made water bodies the right planning mechanism? Are there specific categories of site where individual planning consent should remain mandatory?
- How should the water security co-benefits of FPV (specifically, reservoir evaporation reduction) be measured, attributed, and reported? Should these benefits be formally included in water company regulatory settlements?
- What environmental monitoring requirements should apply to FPV installations on reservoir sites? What thresholds of panel surface coverage should trigger a mandatory Environmental Impact Assessment?
- Should sites within National Parks, National Landscapes, and Areas of Outstanding Natural Beauty be categorically excluded from the FPV programme, or should case by case assessment apply where exceptional energy security benefits can be demonstrated?
- What form of community benefit fund or local revenue sharing arrangement should be attached to each GB Energy FPV installation, and how should community benefit be defined and distributed?
- What role should water utility companies play as co-investors or operational partners in GB Energy FPV installations on their own reservoir assets? Should Ofwat guidance be updated to incentivise or facilitate this?
- Are the KPIs and monitoring framework proposed in Section 12 of this document sufficient to enable effective Parliamentary and public scrutiny of the programme? What additional metrics should be included?
12. Monitoring and Evaluation
12.1 Key Performance Indicators
The following KPIs will be used to assess programme performance against the objectives set out in this document. Baseline values will be established at programme commencement. Annual reporting against these indicators is required under the transparency obligations in Section 10.5.
- Installed FPV capacity (GW) - measured annually against the 8.9 GW ambitious target for 2030 and 58.6 GW for 2050
- Number of sites with active FPV installations - tracked against the pipeline of identified candidate sites
- Annual generation output (TWh) - actual generation from GB Energy owned FPV assets
- Grid connection lead time (months) - average time from site identification to grid connection agreement, benchmarked against the national average for new solar projects
- Public revenue generated (£m per annum) - GB Energy FPV revenue net of operating costs
- Carbon emissions avoided (Mt CO₂e per annum) - calculated against the marginal generating technology displaced
- Employment supported (FTE) - annual full time equivalent jobs attributable to the FPV programme, including construction, installation, operations, maintenance, and supply chain
- Reservoir evaporation reduction (%) - measured at a representative sample of instrumented sites, reported as an average across the estate
- CfD cost to consumers (£/MWh above reference price) - tracked as an indicator of programme cost trajectory and progress toward cost parity with ground mounted solar
12.2 Evaluation Timeline
13. Conclusion
The UK's existing reservoir and hydroelectric estate represents one of the most deployment ready renewable energy opportunities available to government. The sites already have grid connections. The technology is proven. The funding vehicle, GB Energy's multi year capitalisation already exists. The planning mechanism, Permitted Development Rights requires only a targeted extension to unlock the majority of candidate sites.
Under the ambitious policy scenario, this programme can deliver 8.9 GW by 2030 and 58.6 GW by 2050, generating over £30bn in cumulative GVA and sustaining 15,000+ FTE jobs annually. It does so without competing for agricultural land, without waiting for new grid infrastructure, and without requiring new public spending beyond existing commitments.
The dual benefit of energy generation and water security through measurable reduction in reservoir evaporation gives this proposal a strategic co-benefit that no land based solar programme can replicate. As the UK faces increasing water stress alongside accelerating clean energy demand, this convergence of objectives is directly relevant to long term national resilience.
GB Energy provides the institutional framework and the public ownership model.
The UK's reservoir estate provides the ready made generation platform.
The Contracts for Difference mechanism provides the revenue stability for bankable public investment.
This proposal provides the policy direction to connect them.
14. Glossary and List of Abbreviations
Abbreviations
| Abbreviation | Full Term |
|---|---|
| AONB | Area of Outstanding Natural Beauty |
| AR8 | Contracts for Difference Allocation Round 8 |
| BCR | Benefit Cost Ratio |
| CfD | Contract for Difference |
| CPI | Consumer Prices Index |
| DESNZ | Department for Energy Security and Net Zero |
| EqIA | Equality Impact Assessment |
| FPV | Floating Photovoltaic (floating solar) |
| FTE | Full Time Equivalent (employment measure) |
| GB Energy | Great British Energy |
| GVA | Gross Value Added |
| GW | Gigawatt |
| MW | Megawatt |
| MWh | Megawatt hour |
| NAO | National Audit Office |
| NPV | Net Present Value |
| NPPF | National Planning Policy Framework |
| PAC | Public Accounts Committee |
| PDR | Permitted Development Rights |
| TWh | Terawatt hour |
Key Terms
| Term | Definition |
|---|---|
| Contract for Difference (CfD) | The UK Government's primary mechanism for supporting low carbon electricity generation. Generators receive a guaranteed price (the strike price) for electricity produced, if the market price falls below the strike price, the Low Carbon Contracts Company pays the difference. If the market price exceeds the strike price, the generator pays back the difference. Contracts under AR8 run for 20 years and are CPI indexed. |
| Floating Photovoltaic (FPV) | Solar photovoltaic panels mounted on floating platforms on the surface of water bodies, including reservoirs, lakes, quarries, and canals. Also referred to as floating solar or floatovoltaics. FPV systems generate electricity while floating on the water surface, benefiting from cooling effects that improve panel efficiency relative to ground mounted equivalents. |
| Administrative Strike Price | The maximum strike price at which a technology may bid in a CfD allocation round, set by the Government prior to each round. Technologies with higher administrative strike prices receive greater revenue support per MWh generated. The administrative strike price for floating solar (£106/MWh in AR8) reflects its higher current cost relative to ground mounted solar (£75/MWh). |
| Permitted Development Rights (PDR) | Rights granted under the Town and Country Planning (General Permitted Development) Order that allow certain types of development to proceed without requiring a full planning application. Extending PDR to cover FPV installations on water industry sites and man made water bodies would remove a significant planning bottleneck for the programme. |
| Green Book | HM Treasury's guidance on appraisal and evaluation for government expenditure proposals. The Green Book sets out the methodology for assessing the costs, benefits, and risks of government spending decisions, including net present value analysis, benefit cost ratios, and distributional impact assessment. |
| Great British Energy (GB Energy) | The UK's publicly owned clean energy company, established under the Great British Energy Act 2025. GB Energy is capitalised by DESNZ with up to £5.3bn over the period 2025–26 to 2029-30. Its mandate is to develop, invest in, build, own, and operate clean energy projects, ensuring that UK taxpayers, bill payers, and communities benefit from the clean energy transition. |
Sources & Further Reading
- Air Quality News, Floating solar could add nearly 60GW of UK power by 2050 (2024). Reports on CBI Economics analysis commissioned by Bluefield Partners, including all deployment scenarios, GVA projections, employment figures, and CfD strike prices cited in this document. Read source
- ScienceDirect / Elsevier, A technical and economic evaluation of floating photovoltaic systems in the context of the water energy nexus (2024). Peer reviewed analysis of FPV thermal performance, evaporation reduction, and energy yield. Read source
- Bangor University, Some countries could meet their total electricity needs from floating solar panels (4 June 2024). Academic assessment of global floating solar potential. Read source
- Great British Energy, Strategic Plan 2025. Sets out GB Energy's investment mandate, capitalisation structure, and programme priorities including the Energy, Engineered in the UK programme and Local Power Plan. Read source
- Competition and Markets Authority / Subsidy Advice Unit, Report on the Great British Energy Multi Year Capitalisation Scheme (March 2026). Sets out the structure and value of GB Energy's £5.3bn capitalisation programme. Read source
- Department for Energy Security and Net Zero, Government response to the proposed refinements for CfD Allocation Round 8 and future allocation rounds - revision note July 2026. Sets out AR8 policy parameters including sealed bids extension, connection agreement requirements, and technology eligibility. Read source
- Department for Energy Security and Net Zero, Contracts for Difference and Capacity Market scheme update 2025. Covers 20 year CPI indexed contracts, AR7 results, and AR8 forward policy. Read source
- Oregon State University, Floating solar panels show promise, but environmental impacts vary by location, study finds (2024). Research on FPV efficiency gains (5-15%) and thermal impacts on reservoir systems. Read source
- HM Treasury, The Green Book: Appraisal and Evaluation in Central Government. The methodology framework applied in Section 6 of this document. Read source