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).

Renewable energy consumption in the United Kingdom amounted to 0.91 exajoules in 2024, remaining constant when compared to the previous year. Nevertheless, between 1998 and 2022, renewables consumption in the UK increased by 0.85 exajoules, peaking in 2024.

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.

United Kingdom Renewable Energy Market Outlook 2031

United Kingdom renewable energy market size was valued at USD XX Billion in 2022 and is projected to reach USD XX Billion by 2031, expanding at a CAGR of 10.04% during the forecast period 2023 - 2031. The growth of the market is attributed to increasing energy consumption, traditional power sources unable to meet requirement, and growing numbers in renewable energy manufactures.

Renewable energy can be supplied to tides, waves, rain, and wind. While renewable energy is commonly thought of as a replacement technology, harnessing nature’s power has long been used for transportation, lighting, and heating. Now there are innovative and less-expensive ways to capture and retain wind and solar energy renewables are getting an additional necessary power supply.

The COVID-19 outbreak was not able to affect the renewable energy corporation. Renewable energy market players faced several problems vary from getting component require to develop renewable energy and providing end products to attracting workers from quarantines.

The coronavirus-driven internment places a brake on the element and device production that increased product costs, lowering the market demand. However, the renewable energy trade is returning to traditional, witnessing the steady increasing energy demand, particularly from the commercial sectors.

United Kingdom Renewable Energy Market Trends, Drivers, Restraints, and Opportunities

• Increase in consumer purchasing capacity and growing population is projected to boost the market in the coming year.
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The annual greenhouse gas emissions in the energy sector in the United Kingdom decreased by 37.8 million tons of CO2 equivalent (-10.88 percent) in 2020 in comparison to the previous year. Therefore, the annual greenhouse gas emissions in the United Kingdom saw their lowest number in that year with 309.67 million tons of CO2 equivalent. Notably, the annual greenhouse gas emissions in this industry have been, with the exception of 2012, continuously decreasing over the last years.The European Union (EU) as a party to the United Nations Framework Convention on Climate Change (UNFCCC) reports annually its greenhouse gas inventory for the year t-2 and within the area covered by its Member States. The inventory contains data on carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3). The EU inventory is fully consistent with national greenhouse gas inventories compiled by the EU Member States.Find more statistics on other topics about the United Kingdom with key insights such as GGE from industrial processing, GGE from the agriculture sector, GGE from waste management, GGE from the transport sector, and GGE from the manufacturing sector.

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).

As of February 2025, Shell Plc was the leading company in the energy sector listed on the London Stock Exchange (LSE), with a total market capitalization value of over *** billion British pounds. This was followed by Reliance Industries Limited and TotalEnergies, with values of over *** billion and *** billion British pounds, respectively.

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 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 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.

This release has now been discontinued. A range of indicators which aims to provide a headline overview of some of the key developments in the UK energy system. Source agency: Energy and Climate Change Designation: National Statistics Language: English Alternative title: UKESI

The United Kingdom government spent approximately 41.7 billion British pounds on fuel and energy in 2023/24, before falling to just over seven billion pounds in 2023/24, and 3.82 billion in 2024/25.

The United Kingdom renewable energy market is experiencing robust growth, driven by stringent government policies aimed at decarbonizing the energy sector and achieving net-zero emissions targets. The market, valued at approximately £X million in 2025 (assuming a logical extrapolation from the provided CAGR and market size data), is projected to exhibit a Compound Annual Growth Rate (CAGR) of 10.04% between 2025 and 2033. This growth is fueled by increasing investments in renewable energy infrastructure, technological advancements leading to cost reductions in solar, wind, and other renewable technologies, and a rising public awareness regarding climate change and environmental sustainability. Key segments driving this expansion include onshore and offshore wind power, solar photovoltaic (PV) systems, and hydropower, with burgeoning interest in emerging technologies like tidal and geothermal energy. The UK's favorable geographical location for wind energy and government incentives for renewable energy projects are significant contributors to this positive outlook. However, challenges remain, including the intermittency of renewable sources, the need for improved grid infrastructure to accommodate fluctuating power generation, and land-use constraints for large-scale renewable projects. Despite these constraints, the long-term outlook for the UK renewable energy market remains optimistic. The substantial investments from both public and private sectors, coupled with ongoing technological advancements and supportive government regulations, are expected to continue to fuel market growth. Leading players like Ecotricity Group Ltd, Octopus Energy Ltd, and Vestas Wind Systems AS are well-positioned to capitalize on this expansion, contributing to a diversified and increasingly sustainable energy landscape in the UK. The market's segmentation by source – wind, solar, hydro, bioenergy, and other sources – allows for a granular understanding of growth drivers and investment opportunities within each sector, enabling strategic decision-making for businesses and policymakers alike. This robust growth trajectory makes the UK renewable energy market an attractive investment destination for both domestic and international players. 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., Supportive Government Policies in the Country4.; Rising Efforts to Decrease the Dependency on Fossil Fuels to Reduce Carbon Emissions. Notable trends are: Wind Energy is Expected to Dominate the Market.

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 UK's energy use by industry (SIC 2007 group - around 130 categories), source (for example, industrial and domestic combustion, aircraft, road transport and so on - around 80 categories) and fuel (for example, anthracite, peat, natural gas and so on - around 20 categories), 1990 to 2023.

This statistic shows the gross value added (GVA) development in the nuclear energy industry in the United Kingdom from 2010 to 2013. The compound annual growth rate was *** percent. The GVA from this sector was measured at *** billion British pounds (GBP) in 2013. The United Kingdom has a long association with nuclear energy, opening world's first industrial scale nuclear power station in 1956, at Sellafield in Cumbria. While generally declining, energy consumed from nuclear sources in the United Kingdom still amounted to **** million metric tons of oil equivalent in 2015. This is less than it was in 1998, but still a marked increase from the **** million metric tons of oil equivalent seen in 2008. Of all the methods used to generate electricity in the United Kingdom in 2015, nuclear generated the third highest amount of electricity, at ***** terawatt hours compared with close to 100 terawatt hours for gas, and approximately ** terawatt hours for coal. Due to the inherent risks nuclear energy carries, the merits of its use as a source of energy is generally a topic of strong conversation. In 2016, the Department of Energy and Climate Change's tracking survey found that ** percent of respondents agreed that nuclear energy provides a reliable source of affordable energy, compared with just ** percent that disagreed to some extent.

The UK oil and gas industry, valued at approximately £319.52 million in 2025, is projected to experience modest growth over the forecast period (2025-2033), with a Compound Annual Growth Rate (CAGR) of 1.35%. This relatively low CAGR reflects several factors. Firstly, the UK's commitment to transitioning to renewable energy sources is gradually reducing reliance on fossil fuels. Government policies promoting net-zero emissions and increasing investments in wind, solar, and other renewables are significant headwinds. Secondly, fluctuating global energy prices and geopolitical instability create uncertainty in the market. While the upstream sector (exploration and production) faces these challenges, the midstream (transportation and storage) and downstream (refining and distribution) sectors demonstrate more resilience, benefiting from existing infrastructure and established distribution networks. The major players, including Shell, BP, TotalEnergies, and Centrica, are actively adapting their strategies, focusing on diversification into cleaner energy sources and exploring carbon capture and storage technologies to mitigate the risks associated with declining fossil fuel demand. However, the UK's existing expertise and infrastructure in oil and gas provide a solid base for continued activity, particularly in supporting North Sea operations and ensuring energy security during the transition. The ongoing demand for natural gas in the heating and power generation sectors, alongside the potential for significant gas discoveries in the North Sea, will also contribute to a certain level of sustained activity in the industry. The regional breakdown within the UK market reveals significant concentration in key areas such as the North Sea, with regional variations in activity reflecting the location of extraction, processing, and distribution facilities. Competitive pressures remain strong, with established international players alongside smaller, more specialized companies competing for market share. Future growth will likely depend on a delicate balance between maintaining energy security, facilitating a smooth transition to cleaner energy, and attracting sufficient investment to maintain existing infrastructure and potentially develop new resources. This necessitates a carefully managed approach from both government and industry stakeholders. Recent developments include: May 2023: Shell PLC, a major oil and gas company from the United Kingdom, and big-data analytics company SparkCognition announced their collaboration, stating that Shell will leverage artificial intelligence-based technology to enhance offshore oil exploration and production in deep-sea exploration and production., May 2022: BP PLC, one of the major oil and gas companies, announced that they are going to invest USD 22.5 billion in the oil and gas fields located in the North Sea by the end of 2030 to ramp up production activities in the region with decreased emissions. This will help the United Kingdom boost its energy security and sustainably meet its increased energy demands.. Key drivers for this market are: 4., Domestic Oil and Gas Production4.; Investments in Oil and Gas Infrastructure Development. Potential restraints include: 4., Domestic Oil and Gas Production4.; Investments in Oil and Gas Infrastructure Development. Notable trends are: Upstream Segment Expected to Dominate the Market.