United Kingdom (UK) Renewable Energy Market | Size, Share, Trends and Forecast to 2028

United Kingdom (UK) Renewable Energy Market | Size, Share, Trends and Forecast to 2028

The global energy landscape is going through a major shift towards renewable-based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewables deployment in the coming years. Furthermore, as the concern for climate change and support for environmental, sustainability and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of the establishments primarily engaged in operating renewable electric power generation facilities. The power generation can be from a variety of sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electric energy produced in these establishments is provided to electric power transmission systems or to electric power distribution systems.

The United Kingdom is a global decarbonization pioneer, with a net-zero aim by 2050, 5-year carbon budgets, and a strategy to reduce economy-wide greenhouse gas emissions by at least 68 percent by 2030, compared to 1990 levels. Energy technology and innovation are at the heart of the decarbonization agenda, capitalizing on the UK's capabilities.

In June 2019, the United Kingdom became the world's first major economy to enshrine in law a goal of achieving net-zero greenhouse gas emissions by 2050 in order to meet its commitments under the 2016 Paris Agreement to keep global warming well below 2°C.

The United Kingdom is expanding renewable energy markets and technology. In the medium term, natural gas's contribution is projected to expand, particularly during winter months, as current coal and nuclear power capacity is retired, and future nuclear energy plants face a bleak prognosis.

United Kingdom (UK) Renewable Energy Market Scenario

Renewables accounted for 46.5% of the generated electricity in the UK. Among the renewable energy sources, solar accounted for 27.2%, and wind accounted for 5.4% of renewable power generation.

The installed capacity of Solar Photovoltaic in the UK was 13689 MW, while for wind, it was 27130 MW (by the end of 2021). The capacity increased by 14.9% and 68.2% for solar and wind, respectively, since 2016.

Solar Energy in UK

The installed capacity of solar photovoltaics increased by 1.7% relative to 2020. In the past decade, each time that the amount of solar photovoltaic installed capacity doubled globally, the price of installing solar panels and modules declined by 34%.

(For more insights and analysis, consider our report on UK Solar Energy Market)

Wind Energy in UK

Wind power is a major renewable energy source in the UK's energy mix. The installed capacity of wind energy registered an increase of 10.8% relative to 2020. The country's wind power sector comprises both onshore and offshore wind farms installations, with onshore wind forming the major portion of total installations with an installed capacity of 14430 MW, followed by offshore wind with 12700 MW.

(For more insights and analysis, consider our report on UK Wind Energy Market)

In the last decade (2010-2020), globally, the electricity generation from all the sources has increased by 2.2%, from 21,570 terawatt-hours to 26,823 terawatt-hours. During the same period, the power generation from renewables increased by 15.25%. The regulatory support by various countries has played an essential role in the growth of the global renewable energy market. Renewable energy tax credits and subsidies, feed-in tariffs, and competitive auctions helped reduce costs and spur deployment.

Since 2010, the cost of solar photovoltaic electricity has fallen by 85%, and the costs of both onshore and offshore wind electricity have fallen by about 50%. Both these clean energy sources have reached a stage where they are now cost-competitive with fossil fuel electricity.

In fact, Renewables were the only energy source for which demand increased in 2020 despite the pandemic, while consumption of all other fuels declined. The share of renewables in the total energy mix grew from 3.53% in 2010 to 11.73% in 2020 and is expected to grow to about 30% by 2030.

UK Renewable Energy Policy

The regulatory framework underlying the UK's clean energy shift is substantially implemented through the Energy Act 2013, which, as part of the UK electricity market reform program (EMR), sought to restructure the UK's electricity system to provide secure, low-carbon, and cheap energy supply. EMR provided key mechanisms such as the contracts for difference (CfD) program to offer long-term revenue stability for low-carbon power projects. The CfD scheme is the major subsidy scheme for new renewable energy projects in the United Kingdom.

The Energy White Paper released in 2020 and the Prime Minister's Ten Point Plan for a Green Industrial Revolution (solar, offshore wind, hydrogen, nuclear, carbon capture, alongside energy efficiency) showcase the UK's inventive vision and potential. The UK is predicted to have a relatively high share of wind and solar power by 2030.

To meet the UK's predicted 50% growth in energy demand by 2035, the targets for low-carbon power generation in the Energy Security Strategy paper had been boosted compared to prior targets in the Energy White Paper. The targeted installations were increased for offshore wind energy from 40 GW with 1 GW floating offshore wind to 50 GW ith up to 5 GW floating offshore wind by 2030. The targets were also increased for hydrogen and nuclear power.

Recent Developments

In July 2022, the UK government organized the 4th round of contracts for difference (CfD) which delivered about 11GW of renewable energy capacity, nearly double the capacity attained in the previous phase, enough green energy to power around 12 million British homes with clean, affordable, indigenous energy, reducing our reliance on uncertain global prices.

On April 7, the UK government unveiled its long-awaited energy security policy during the biggest cost-of-living crisis in decades, fueled in large part by skyrocketing energy prices. The primary goals of the UK Energy Security Strategy are to increase energy self-sufficiency and to source 95 percent of the country's energy from "low-carbon" sources by 2030.

What do we cover in the Report?

Blackridge Research's United Kingdom (UK) Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2028, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of the United Kingdom (UK).

Furthermore, the report will contain the drivers and restraints within the United Kingdom (UK) Renewable Energy Market, along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting renewable energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards), as well as country-specific regulations. Finally, the presentation would enable us to identify market opportunities and plan for long-term growth.

The impact of the COVID-19 pandemic is an integral part of the report.

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