The United Kingdom Renewable Energy Market Report is Segmented by Source (Wind, Solar, Hydro, Bioenergy, and Other), Installation Scale (Above 10 MW, 100 KW To 10 MW, and Below 100 KW), and End-User Sector (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

United Kingdom Power Market is Segmented by Power Generation from Sources (Thermal Power, Non-hydro Renewable Power, Hydroelectric, and Nuclear Power) and Transmission and Distribution (T&D).

In 2024, EDF was the leading company in the wholesale electricity generation market in Great Britain (GB), with a share of ** percent. The UK branch of the German company RWE ranked second that year, with a market share of approximately ** percent.

The UK solar energy market size reached USD 9,003.5 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 25,160.6 Million by 2033, exhibiting a growth rate (CAGR) of 12.1% during 2025-2033. There are several factors that are driving the market, which include favorable government initiatives, increasing solar photovoltaic (PV) installations, rising focus on maintaining environmental sustainability, integration of advanced technologies, and energy independence and security.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on technology, application, and end user.

The selling value of electricity for all sectors in the United Kingdom (UK) has historically been higher compared to the selling value of gas. In 2022, the selling value of electricity totaled 59.8 billion British pounds, while the selling value of gas amounted to 46.8 billion British pounds.

Recent developments include: February 2023: the Crown State in the United Kingdom signed agreements to lease six offshore wind energy projects. These projects are likely to start generating electricity by the end of the decade, and these projects have the potential to generate 8 GW of renewable energy sufficient to power more than seven million households., March 2022: Shell announced a plan to invest around USD 33 billion n the United Kingdom energy system in the next ten years. Around 75 % of total investment was expected in renewable energy projects, including offshore wind, hydrogen, and electric mobility., January 2022: SSE announced details of its first solar project that delivered 30 MW of clean energy as part of its ambitious USD 16 billion investment program to power change toward net zero. The 30-MW solar farm at Littleton Pastures is located near Evesham, Worcestershire, England. Once completed in late 2023, the 77-acre site can power about 9,400 homes.. Key drivers for this market are: 4., Supportive Government Policies in the Country4.; Rising Efforts to Decrease the Dependency on Fossil Fuels to Reduce Carbon Emissions. Potential restraints include: 4., Changes in Government Policies Related to Increasing VAT on Various Clean Energy Technologies. Notable trends are: Wind Energy is Expected to Dominate the Market.

The Energy Storage in United Kingdom Market size was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, exhibiting a CAGR of 21.34 % during the forecasts periods. Energy storage is the process of capturing energy produced at one time for use at a later time, helping to balance supply and demand. It involves converting energy from forms that are difficult to store to more convenient or economical forms. Common energy storage technologies include batteries, pumped hydro storage, flywheels, compressed-air energy storage, and thermal energy storage. These systems store energy in various forms, such as chemical, gravitational, or thermal, and release it when needed. Energy storage is crucial for integrating renewable energy sources like wind and solar into the grid, as it allows excess energy generated during peak production times to be used during periods of high demand. This technology enhances grid stability, reduces reliance on fossil fuels, and supports the transition to a more sustainable energy system. Recent developments include: Jun 2022: Quinbrook Infrastructure Partners acquired exclusive project development rights for the 230 MW/460 MWh battery energy storage project in Wales, United Kingdom. The battery energy storage system will be at the former Uskmouth coal-fired power station in South Wales, which closed in 2015. The project development rights were acquired from Simec Atlantis Energy, and the BESS is expected to be commissioned by the end of 2024., Jan 2022: Voltalia commissioned the Hallen Battery Energy Storage Scheme (BESS) project, which has a 32 MW/32 MWh storage plant capacity. The lithium-ion battery storage facility comprises 16 modules, each with a capacity of 2 MWh per unit, and it is located near the city of Bristol in the Avonmouth region.. Key drivers for this market are: 4., The High Amount of Waste Generation in the Country4.; The growing Focus on Non-Fossil Fuel Sources. Potential restraints include: 4., The Recycling Rate of Waste in Germany. Notable trends are: Battery Energy Storage Systems Expected to Witness Significant Demand.

British Gas is the largest retail electricity supplier in Great Britain. Despite a notable decline throughout the years, it still accounted for ** percent of the market as of December 2024. E.ON followed closely, with a market share of ** percent.  Changes in the Big Six  The electricity market in Great Britain has historically been controlled by a few providers, collectively known as the Big Six. These include British Gas, E.ON, SSE, EDF, Npower, and Scottish Power. However, recently, there have been significant changes in their composition. In January 2020, OVO Energy acquired SSE's electricity and gas distribution business, albeit continuing to sell energy under the SSE brand. Meanwhile, Npower was acquired by E.ON in 2019, turning the Big Six into a de-facto Big Five.  Growing competition in the British electricity supply market  In 2010, the Big Six held *** percent of the domestic electricity supply market in GB. To promote a more competitive market, the British energy regulator, Ofgem, enacted a series of market reforms aimed at increasing access for smaller players. The past decade has seen a significant number of domestic customers switching from large electricity suppliers to small and mid-tier suppliers, causing the Big Six’s market share to dip to ** percent in 2024.

UK Electricity decreased 27.05 GBP/MWh or 26.40% since the beginning of 2025, according to the latest spot benchmarks offered by sellers to buyers priced in megawatt hour (MWh). This dataset includes a chart with historical data for the United Kingdom Electricity Price.

A comparative table of weekly UK wholesale market prices across key energy commodities, including gas, electricity, coal, EUA carbon, UKA carbon, and Brent crude oil. The table includes current, previous, and year-on-year values for both day-ahead and year-ahead contracts, as well as 12-month highs and lows.

Market Size statistics on the Electricity Production industry in United Kingdom

The UK's reallocated energy use and energy intensity - the level of usage per unit of economic output, by industry (SIC 2007 group - around 130 categories), 1990 to 2023.

The UK's direct use of energy from fossil fuels and other sources (nuclear, net imports, renewables, biofuels and waste and reallocated use of energy by industry (SIC 2007 section - 21 categories), 1990 to 2023.

The United Kingdom power market, valued at approximately £X billion in 2025 (assuming a logical estimation based on the provided CAGR and market trends), is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) exceeding 7% from 2025 to 2033. This expansion is driven by several key factors. Increasing demand for electricity fueled by a growing population and industrial activity necessitates a significant increase in power generation capacity. Simultaneously, the UK's commitment to achieving net-zero carbon emissions by 2050 is accelerating the transition to renewable energy sources, including wind, solar, and potentially tidal power. This transition is attracting substantial investments and fostering innovation within the renewable energy sector. Government policies promoting renewable energy adoption, along with stricter regulations on carbon emissions from conventional power plants, further underpin this market's expansion. However, challenges remain. The intermittent nature of renewable energy sources requires significant investment in grid infrastructure upgrades and energy storage solutions to ensure grid stability and reliability. Furthermore, securing sufficient investment for large-scale renewable energy projects, managing public acceptance of new infrastructure, and navigating fluctuating energy prices continue to pose challenges. Despite these restraints, the UK power market presents significant opportunities for established players and new entrants alike. The ongoing expansion of offshore wind capacity, particularly in areas with high wind speeds, offers considerable potential for generating clean energy. Furthermore, the integration of smart grid technologies and advanced energy management systems is poised to improve efficiency and grid resilience. Companies involved in power generation, transmission, and distribution, including those specializing in renewable energy technologies, are well-positioned to benefit from this growth. The market segmentation into thermal, renewable (hydro, non-hydro), and nuclear power, along with transmission and distribution (T&D), showcases the diverse investment and operational opportunities within this dynamic sector. Companies like Electricite de France SA, Ecotricity Group Ltd, and others listed are key players navigating this complex and evolving market landscape. The forecast period of 2025-2033 promises substantial growth, creating a fertile ground for strategic partnerships, mergers, and acquisitions. Recent developments include: In March 2021, Statkraft, Europe's largest renewable energy generator, announced development plans for three new solar farms in the United Kingdom, two in Cornwall and one in Suffolk. The solar energy farms aim to provide 125.5 MWp of solar capacity, generate nearly 127 GWh of electricity per year, and power nearly 36,000 homes., In January 2022, the UK government announced GBP 100 million (USD 134 million) funding to support the Sizewell C nuclear power project in Suffolk. The funding will be used to continue the development of the project and aim to attract further financing from private investors and secure relevant approvals., In January 2022, SSE announced details of its first solar project that would deliver 30 MW of clean energy as part of its ambitious GBP 12.5 billion investment program to power change toward net-zero. The 30 MW solar farm at Littleton Pastures is located near Evesham, Worcestershire. Once completed in late 2023, the 77-acre site would be capable of powering about 9,400 homes.. Notable trends are: Non-hydro Renewable Power Segment to Witness Significant Market Growth.

The Waste-to-Energy Plant Operation industry is growing strongly. EfW plants focus on the disposal and recovery of municipal waste and energy generation. This energy comes in the form of electricity exported to the national grid and consumers along private wires. EfW plants also export heat, usually in the form of steam that can be used in industrial processes or to heat homes. It also collects and sells recyclates from the waste, which is often metals recovered from sorting and bottom ash processing. Revenue is projected to expand at a compound annual rate of 6.8% to reach £1.9 billion over the five years through 2024-25, including revenue growth of 4% in 2024-25, when the profit margin will climb to 12.7%.

Revenue dropped in 2020-21 because of the pandemic, which led to electricity consumption and industrial prices collapsing. Revenue is rising because of a sharp upshot in prices due to the global supply pressures created by the ongoing war between Russia and Ukraine. The average profit margin is increasing in line with high energy prices because waste-to-energy plants are receiving more for selling electricity to the UK grid without elevating production. Energy prices are cooling in 2024-25, reducing returns for EfW plant.

Revenue is forecast to expand at a compound annual rate of 5.7% to reach £2.4 billion over the five years through 2029-30. The end of coal in 2024 will provide opportunities for EfW plants to sell more to the national grid. The stable level of energy and heat generation supplied by the industry will be more important going forward. The UK government's strategy to achieve net zero by 2050 will lead to more money poured into EfW plants. BEIS is investing in the Runcorn and Tees Valley facilities, enhancing capacity at EfW plants.

Greater awareness about the effects of climate change has driven an aggressive decarbonising strategy spearheaded by renewables. Government targets and incentives encourage major investment in renewable assets among UK energy giants. Technology developments have boosted potential generating capacity, particularly in offshore wind, which has grown the fastest of all renewable energy sources. According to the Department for Energy Security and Net Zero, the share of electricity generated by major power producers from renewables surged from 34.5% in 2019-20 to 42.4% in 2023-24. Renewable generators' revenue is slated to climb at a compound annual rate of 8.7% over the five years through 2024-25 to reach £14.5 billion. Growth has been underpinned by the UK’s rapid expansion of renewable generating capacity. Offshore wind has recorded the most significant expansion in generation volumes as investors look to take advantage of technological advancements to tap into the UK's abundant natural resources. Soaring wholesale prices have added to revenue growth since H2 2021-22; however, operators of renewable generation assets that operate under a Contract for Difference (CfD) have been required to pay back the difference between wholesale prices and CfD strike prices, limiting the impact of a surge in wholesale prices on operating profit. Inflation-linked increases to fixed price mechanisms have also boosted growth. Revenue is forecast to jump by 11.4% in 2024-25. Revenue is forecast to swell at a compound annual rate of 11.1% over the five years through 2029-30 to reach £24.6 billion. The UK already has a strong pipeline of renewable assets set for delivery in the coming years, with ongoing government support likely to fuel further investment. In the short term, increased capacity is set against a backdrop of falling strike prices, though the extent of capacity expansion should support further growth. Hikes in strike prices secured in the most recent CfD allocation round will also boost growth in the longer term. Rising battery storage capacity should help support growth in renewables' share of the UK energy mix by reducing barriers associated with intermittent supplies of renewable power.

The Report Covers Geothermal Energy Companies in the UK and the market is segmented by Application (Power Generation and Direct Heat Utilization).