The Future of UK Renewable Energy: A Shift Towards Sustainability

May 13 2025 , 10 min reading time

This article examines the findings from two recent reports on the UK’s renewable energy sector: one from Ember (Mayo, 2024), which focuses on the rise of renewables in electricity generation, and another from Gallagher (2024), which highlights the risks and opportunities in the industry. As a renewable energy parts supplier, installer, and repair company, understanding these trends is essential for businesses and consumers to decide about sustainable energy solutions.

The UK's energy landscape is changing rapidly, with renewable energy set to overtake fossil fuels for the first time in 2024 (Mayo, 2024). This shift marks a crucial milestone in the country's journey towards net-zero emissions by 2050. However, while renewable energy is growing, challenges remain, including supply chain issues, workforce shortages, and technological uncertainties (Gallagher, 2024).

The Rise of Renewable Energy in the UK

According to Ember’s report, 2024 is the first year in which UK low-carbon renewable energy (wind, solar, and hydropower) will generate more electricity than fossil fuels. This is a historic milestone in the UK’s energy transition, driven by:

· A record 37% of UK electricity comes from renewables, compared to 35% from fossil fuels.

· A decline in gas power by 13%, marking the lowest level since 1996.

· The closure of the last coal power plant in October 2024 (Mayo, 2024).

This growth is largely due to wind power, which is on the verge of overtaking gas as the UK's largest source of electricity. Wind is forecast to generate 29% of the UK’s electricity in 2024, just behind gas at 30% (Mayo, 2024). While this is still uncertain, it demonstrates that wind power will soon become the UK's dominant energy source.

Key Drivers of Renewable Growth

· Government Policies: The UK government has committed to a fully renewable electricity system by 2035 and aims for net-zero emissions by 2050.

· Falling Fossil Fuel Demand: The high cost of gas and reduced electricity demand have made renewables more competitive.

· Cheaper Imports: Increased European electricity imports have displaced some fossil fuel generation (Mayo, 2024).

· Increased Wind and Solar Capacity: The UK has added 2.7 GW of new renewable energy capacity, including 590 MW of new onshore wind in 2024 (Mayo, 2024).

The Future Challenges of the Renewable Energy Industry

Despite the positive progress, Gallagher’s UK Renewable Energy Report 2024 highlights several challenges that the industry must address to achieve a fully renewable system (Gallagher, 2024).

1. Supply Chain Issues and Workforce Shortages

· Global demand for materials such as solar panels, wind turbine blades, and batteries is increasing, causing delays and rising costs.

· A shortage of skilled workers in the UK is slowing the installation of renewable energy projects.

· Businesses need better planning and risk management to ensure that materials and workers are available when needed (Gallagher, 2024).

2. Infrastructure and Grid Upgrades

· The UK’s electricity grid was built for fossil fuels, and upgrades are needed to support renewable energy.

· The government is investing in energy storage and grid infrastructure, but progress has been slow.

· Smart grids and battery storage solutions are essential to balance the intermittent nature of wind and solar power (Gallagher, 2024).

3. Risks of Emerging Technologies

· New technologies like floating wind farms, hydrogen energy, and advanced battery storage lack historical data, making them harder to insure.

· Hydrogen is a promising energy source, but it is still in its early stages of development.

· Companies need to prepare for potential risks, including technical failures, delays, and financing challenges (Gallagher, 2024).

Opportunities for the UK Renewable Energy Sector

While these challenges are significant, they also present opportunities for businesses, investors, and consumers.

1. Growth in Onshore and Offshore Wind

· The removal of restrictions on onshore wind farms in 2024 is expected to lead to a boom in wind energy projects.

· Offshore wind capacity is set to expand with new projects like Dogger Bank A&B and Moray West, which will add 3.8 GW of power by 2026 (Mayo, 2024).

2. Increasing Demand for Solar Energy

· Solar PV contributed 4.3% of UK electricity in 2024, which is expected to rise as costs decrease and efficiency improves (Gallagher, 2024).

· The UK government is considering reforms to the Smart Export Guarantee (SEG), which could encourage more households and businesses to install solar panels.

3. Expansion of Energy Storage Solutions

· Battery storage is becoming crucial for balancing renewable energy supply and demand.

· The UK is investing in long-duration energy storage to support wind and solar power when generation is low.

· Businesses that offer battery storage solutions will benefit from growing demand (Gallagher, 2024).

What This Means for UK Households and Businesses

The transition to renewables is good news for energy consumers because it reduces reliance on expensive fossil fuels and lowers carbon emissions. However, businesses and homeowners must be prepared for changes in energy policy and pricing.

For Homeowners:

· Now is a great time to invest in solar panels and home battery storage.

· With energy prices still fluctuating, generating your own electricity can save money.

· Government incentives may reduce the upfront cost of renewable installations.

For Businesses:

· Investing in on-site renewable energy (solar panels, wind turbines, and battery storage) can cut costs and improve sustainability.

· Businesses involved in renewable energy installation and repair will see growing demand as more homes and companies switch to renewables.

· Energy efficiency measures like heat pumps and smart grids will become more critical in the coming years.

For Renewable Energy Companies:

· The industry needs more skilled workers, creating opportunities for training and job creation.

· Companies should plan for supply chain risks and invest in flexible energy solutions.

· As new technologies like hydrogen and floating wind farms become mainstream, businesses should stay ahead of industry trends.

The UK is at a critical turning point in its renewable energy journey. For the first time, renewables are set to generate more electricity than fossil fuels, marking a significant step towards a cleaner, more sustainable future (Mayo, 2024). However, supply chain issues, workforce shortages, and infrastructure upgrades must be addressed to ensure a smooth transition (Gallagher, 2024).

The future looks bright for businesses in the renewable energy sector. Whether you install, supply, or repair renewable energy systems, demand is set to grow. By staying informed, investing in training, and preparing for industry changes, businesses and consumers alike can benefit from the UK’s transition to renewable power.