Our latest CleanBridge Energy Current Report examines one of the most consequential infrastructure challenges of the energy transition: electricity transmission. As renewable deployment accelerates across Europe, grid networks are struggling to keep pace, creating structural bottlenecks that constrain decarbonisation and energy-security objectives. This work reflects a valued research collaboration with Alchemy Business Intelligence and Insights, a leading group actively engaged across energy transition markets. The report draws on regulatory frameworks, industry data and policy developments from across the UK and Europe.
The UK stands at the forefront of a broader shift in how transmission infrastructure is financed and delivered. The emergence of the Competitively Appointed Transmission Owner (“CATO”) framework represents a significant departure from the traditional regulated monopoly model, introducing project-based competition into onshore transmission and opening new pathways for institutional capital. Underpinned by the Energy Act 2023 and Ofgem’s Tender Regulations 2025, CATO builds on the success of the Offshore Transmission Owner (“OFTO”) regime, which has attracted over £11.0 Bn of private investment since 2009, and is now being extended to onshore grid assets.
The investment case is compelling but nuanced. The UK is transitioning from a generation-led to a grid-led investment cycle, with National Energy System Operator (“NESO”) estimating approximately £60.0 Bn in required network investment. At the same time, the pathway to deployment involves meaningful execution risk — regulatory certainty, planning complexity, pipeline visibility and bid risk will each shape whether CATO delivers on its promise at scale. Across Europe, the adoption of competitive transmission models is likely to be selective, with a hybrid outcome where regulated Transmission System Operators (“TSOs”) retain core planning responsibilities while private capital is deployed into clearly defined project categories.
We trust this primer provides valuable insights into an emerging and strategically important area of the energy transition, and we look forward to sharing further updates on emerging energy transition trends in the months ahead.
