UK Renewable Energy Market Report, By Product (Bioenergy, Hydropower, Wind Power and Solar Energy), By Application (Industrial, Residential and Commercial), and Forecast 2024-2032

Market Overview:

"The UK renewable energy market was valued at US$ 20.1 billion in 2023 and is expected to register a CAGR of 20.3% over the forecast period and reach US$ 106.1 Bn in 2032."

Renewable energy is fuel generated from natural resources, which replace themselves at a faster rate than being used. So, this kind of energy does not get exhausted soon. Its examples are solar energy, wind energy, hydropower, biomass, and geothermal energy. Renewable energy sources do not include fossil fuels because their efficiency is limited while they are being used, which causes environmental destruction and also greenhouse effect. The move to sustainable energy solutions globally reflects the role of renewable energy in gradually reducing dependence on fossil fuel, enhancing energy security, and managing climate change. In this context, a future that is sustainable further than ever seems inevitable.

The UK renewable energy market has experienced enormous growth because of the government's intention to reduce its carbon emission and become net-zero by 2050. Once again, enormous growth in the renewable energy sector has been observed here with wind energy from offshore winds taking the lead for the country. The country is a global leader in offshore winds. Undoubtedly, solar power has increased in the UK, though marginally, because the overall climate of the country does not favor its use much. Photovoltaic systems have gained more usage in the region as well. Hydropower and biomass are generating smaller contributions, with biomass used both for electricity generation and heating. Geothermal power is still a developing sector but has also been initiated towards its possible future. Governmental support, policies, subsidies, and infrastructural investments have been significant in promoting the expanded use of renewable energy, which has been an integral component of the UK's transition from fossil fuels to a cleaner-energy regime.

UK Renewable Energy Market Drivers and Trends:

The UK renewable energy market receives strong government ambitions in pursuit of net-zero emissions by 2050, along with conducive policies, incentives, and growing investment in clean energy infrastructure. These factors combine with declining costs for renewable technologies, primarily wind and solar, that have propelled the latter to unprecedented speed. Major trends in the UK involve offshore wind farms growth that is putting up fast paces to make the UK a world leader, fast increases in solar energy which have been enabled although they are at a climate disadvantage, and increased focus on efficiency and sustainability through advances into developments such as energy storage, smart grids, and hydrogen. The other development is in decentralized energy production, from community-driven renewable projects to the future of the UK's landscape on renewable energy.

UK Renewable Energy Market Restraining Factors:

The UK renewable energy market has several restraining factors that could hamper its growth. The high upfront costs of renewable energy projects, notably offshore wind and new technologies like hydrogen, have emerged as significant challenges. In addition, the intermittency of wind and solar energy, largely based on the weather, reduces the reliability of supply and also requires energy storage solutions, which are typically very expensive to deploy at scale. Beyond that, existing grid infrastructure in some regions may be incapable of accepting large-scale renewable energy integration; this calls for significant upgrades. Uncertainty in regulatory policies, constantly changing government policies, and existing subsidies will all slow market growth. Local opposition to the establishment of wind farms and other renewable energy projects delays them. Together with supply chain disruptions worldwide and resource constraints, these factors make quicker transformation difficult for the UK's renewables sector.

UK Renewable Energy Market Opportunities:

The UK renewable energy market offers significant opportunities mainly because of the country's dedication to net-zero emissions and increased demand for sustainable energy solutions. Offshore wind energy, for instance, is a promising area due to the UK's continued growth in capacity coupled with enhanced strength of its global lead in this area. While the maturity of solar energy in the UK is less, it would enjoy growth in residential and commercial installations. An emerging new source is hydrogen, and new types of energy storage systems, promising technologies that are helping to mitigate and remedy the intermittency of energy issues on a grid to make it more reliable. Decentralized energy production is also gaining momentum through local and community-based renewable projects. The UK is very well supported through government backing on focus in sustainable infrastructure and represents an attractive landscape for investment in renewable technologies and green energy ventures.

UK Renewable Energy Market Segmentation:

By Product

• Bioenergy
• Hydropower
• Wind Power
• Solar Energy

Wind power, especially in the offshore sector, is the leading segment in the UK renewable energy market. The UK has heavily invested in offshore wind farms, establishing itself as a global leader in this field. With several large-scale projects, such as the Hornsea Project, already operational and more under development, wind power is poised to play a vital role in the country's energy landscape. Factors such as technological advancements, declining costs, and robust government support for renewable energy initiatives have propelled wind power to the forefront of the market. This leadership is further reinforced by the UK’s ambitious goals for reducing carbon emissions and achieving net-zero by 2050, positioning offshore wind as a crucial element of the nation’s sustainable energy strategy.

By Application

• Industrial
• Residential
• Commercial

In the UK renewable energy market, the industrial application segment is currently the most dominant. Industries are increasingly turning to renewable energy solutions to achieve sustainability targets and minimize their carbon footprints. This shift is driven by rising energy costs, regulatory pressures, and an enhanced focus on corporate social responsibility. Various industrial sectors, including manufacturing and utilities, are investing in large-scale renewable energy projects, such as wind farms and solar installations, to power their operations more sustainably. The move toward electrification and the integration of renewable energy into industrial processes further reinforce the industrial segment's dominance, establishing it as a vital component in the transition to a low-carbon economy.

UK Renewable Energy Market Manufacturers & Competitive Landscape:

The UK renewable energy market is highly competitive, with several key players vying for market share and actively engaging in strategic initiatives. These companies focus on product innovation, technological advancements, and expanding their product portfolios to gain a competitive edge. These companies are continuously investing in research and development activities to enhance their product offerings and cater to the evolving needs of customers in terms of efficiency, performance, and sustainability.

These companies include:

• ABB
• Acconia
• Enel Spa
• General Electric
• Invenergy
• Schneider Electric
• Siemens Gamesa Renewable Energy
• Suzlon Energy Ltd.

Recent News and Development

• October 2024: BPG Energy, which is a licensed energy supplier and specializes in innovative renewable energy supply solutions for UK Industrial and Commercial (I&C) businesses, has rebranded to Evolve Energy. Under its new identity, the company will endeavor to empower companies in making the transition to a greener energy supply by identifying and solving the challenges that prevent businesses from gaining entry into, and integrating certified renewable energy into, their supply positions.

• September 2024: RWE, the UK's leading power generator, has started construction on yet four more of its solar projects in the UK. That brings the total to 11, and it represents yet another step forward in both the growth of the company's renewable energy footprint and in supporting the UK's net-zero ambitions.

• September 2024: SmartestEnergy empowers switched-on organizations, generators, and partners to reach net-zero status. The company recently announced Traceable Renewable Supply: improving energy supply chain transparency for businesses and ensuring there is a more accountable and continuous reporting process.

• September 2024: The UK's first "motionless" wind energy system was recently installed at the BMW Group's MINI manufacturing plant in Oxford. Supplied by low-impact technology company Aeromine Technologies, the technology captures wind power without using visible moving parts to generate clean energy.

• July 2024: The newly formed UK government has announced the introduction of the Great British Energy Bill, which aims to create a publicly-owned company responsible for investing in, owning, and managing clean energy projects.

• February 2023: General Electric secured a contract from WPD to supply 16 onshore wind turbines for three wind farms in Landkreis Uelzen, Niedersachsen, Germany. These wind farms are projected to generate enough electricity to power approximately 90,000 households annually, enabling the company to broaden its consumer base.

• December 2023:  Invenergy announced its development of the Leading Light Wind project, a 2.4GW offshore wind initiative. The company has submitted a proposal to the state of New Jersey for the necessary infrastructure to support offshore wind generation and transmission.

• April 2023: Siemens Gamesa Renewable Energy unveiled GreenTower, a wind turbine tower constructed from more sustainable steel. This innovative tower is expected to reduce CO2 equivalent emissions from tower steel plate production by 63% compared to traditional steel manufacturing processes.

Research Scope