UK Renewable Energy Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 10.04 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UK Renewable Energy Market Analysis
The United Kingdom's renewable energy sector size is expected to grow from 134.85 gigawatts in 2023 to 217.57 gigawatts by 2028, registering a CAGR of 10.04% during the forecast period (2023-2028).
- Over the medium term, factors such as supportive government policies and efforts to meet the rising power demand using renewable energy sources and decrease the dependency on fossil fuels to reduce carbon emissions are significant contributors to the market growth.
- On the other hand, changes in government policies related to increasing VAT on various clean energy technologies and the withdrawal of subsidies on small-scale solar are expected to hinder market growth during the forecast period.
- Nevertheless, with ambitious renewable energy targets in place by 2030, huge market opportunities exist for renewable energy market companies in the near future.
UK Renewable Energy Sector Trends
Wind Energy is Expected to Dominate the Market
- With the increasing need for a reliable, affordable, clean, and diverse electricity supply, the government and utilities nationwide are increasingly considering wind power. Moreover, with the country's unparalleled wind resources, ample opportunities exist to maximize wind energy development's economic and environmental benefits.
- The country's installed wind energy reached 52.42 GW in 2022, representing an increase from 48.89 GW in 2021. The United Kingdom is also one of the leading countries worldwide in offshore wind energy, with an installed capacity of more than 13.45 GW in 2022. With several ambitious projects already in development, the government aims to reach 20 GW by the end of 2030.
- In January 2022, Shell plc and Scottish Power Ltd. Joint ventures won bids to develop 5 GW of floating wind power in the United Kingdom. Both companies plan to build and operate two of the world's first large-scale floating offshore wind farms in the United Kingdom with a power generation capacity of 3 GW and 2 GW. Such projects are expected to aid market growth in the coming years.
- The country aims to expand the offshore wind sector to around 50 GW capacity by 2030. Wind turbines provided 32.4% of Britain's total electricity in the first quarter of 2023, which 3% is higher than the first quarter of 2022.
- Therefore, the high growth rate of wind energy makes the United Kingdom one of the renewable market leaders and drives toward a green future.
Uncertainties in Government Policies are Restraining the Market Demand
- The United Kingdom regulated the feed-in tariff, through which energy suppliers give payments if a property or organization generates its electricity using a renewable source like wind or solar.
- The United Kingdom government decided to reduce the subsidies for rooftop solar panels installed by 65%, leading to the slowest deployment of domestic solar seen under the FiT scheme in the country. Further, in March 2019, the government closed this scheme, which negatively affected the growth of the solar market in the United Kingdom.
- The total new installed solar energy capacity was only around 613 MW, which had been severely affected since 2022, and the cumulative installed solar power was around 14,412 MW in 2022. The solar feed-in tariffs had encouraged several homes to install solar PV systems on their rooftop. Although the government rolled out several other schemes to counter the adverse effects of removing the tariff on the market, such as the Smart Export Guarantee (SEG), the market is expected to attain a lower growth rate than before.
- Under the SEG scheme, although few companies, like Tesla and Social Energy, offer tariff rates above 5 p/kWh, major and well-established energy suppliers, such as EDF and EON, offer very few tariffs - below 3.5 p/kWh. There is also a chance that these companies can lower the tariff rates in the coming years. Therefore, the tariff prices offered under SEG are expected to remain uncertain during the forecast period compared to the FiT scheme.
- The United Kingdom government's policies and regulations are significant factors that will decide the future of the renewable energy market. The above factors can restrain the market growth in either way.
UK Renewable Energy Industry Overview
The United Kingdom's renewable energy sector is moderately fragmented. Some of the major players in the market (in no particular order) include Vestas Wind Systems AS, Siemens Gamesa Renewable Energy SA, Électricité de France SA, Renewable Energy Systems Ltd, and Ecotricity Group Ltd.
UK Renewable Energy Market Leaders
-
Vestas Wind Systems A/S
-
Ecotricity Group Ltd.
-
Renewable Energy Systems Ltd.
-
Siemens Gamesa Renewable Energy S.A.
-
Électricité de France SA
*Disclaimer: Major Players sorted in no particular order
UK Renewable Energy Market News
- 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.
UK Renewable Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Renewable Energy Installed Capacity and Forecast in GW, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Supportive Government Policies in the Country
4.5.1.2 Rising Efforts to Decrease the Dependency on Fossil Fuels to Reduce Carbon Emissions
4.5.2 Restraints
4.5.2.1 Changes in Government Policies Related to Increasing VAT on Various Clean Energy Technologies
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Source
5.1.1 Wind
5.1.2 Solar
5.1.3 Hydro
5.1.4 Bioenergy
5.1.5 Other Sources (Geothermal, Tidal)
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Ecotricity Group Ltd.
6.3.2 Octopus Energy Ltd.
6.3.3 Tonik Energy Ltd.
6.3.4 E.ON UK PLC
6.3.5 Électricité de France SA
6.3.6 Good Energy Group PLC
6.3.7 Renewable Energy Systems Ltd.
6.3.8 Vestas Wind Systems AS
6.3.9 Mitsubishi Corp.
6.3.10 Siemens Gamesa Renewable Energy SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Ambitious Offshore Wind Energy Targets in Place by 2030
UK Renewable Energy Industry Segmentation
Renewable energy is energy collected from renewable resources naturally replenished on a human timescale. It includes sunlight, wind, water movement, and geothermal heat.
The United Kingdom's renewable energy sector is segmented by source. The market is segmented by source into wind, solar, hydro, bioenergy, and other sources (Geothermal, Tidal). For each segment, the installed capacity and forecasts have been done based on gigawatts (GW).
| Source | |
| Wind | |
| Solar | |
| Hydro | |
| Bioenergy | |
| Other Sources (Geothermal, Tidal) |
UK Renewable Energy Market Research FAQs
What is the current UK Renewable Energy Market size?
The UK Renewable Energy Market is projected to register a CAGR of 10.04% during the forecast period (2024-2029)
Who are the key players in UK Renewable Energy Market?
Vestas Wind Systems A/S, Ecotricity Group Ltd., Renewable Energy Systems Ltd., Siemens Gamesa Renewable Energy S.A. and Électricité de France SA are the major companies operating in the UK Renewable Energy Market.
What years does this UK Renewable Energy Market cover?
The report covers the UK Renewable Energy Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UK Renewable Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which end-user segment holds the key share in the UK Renewable Energy Market?
Based on end-users industrial segment holds the key share in the UK Renewable Energy Market.
UK Renewable Energy Industry Report
The UK's renewable energy sector is poised for substantial growth due to supportive government policies and a shift towards sustainable energy sources. This sector encompasses various types of natural energy, including wind, solar, hydro, and bioenergy. Among these, wind energy is predicted to dominate the market due to increasing production capacities and the completion of large-scale projects.
The low-carbon energy sector features key players like Vestas Wind Systems AS and Siemens Gamesa Renewable Energy SA, driving innovation and development. The market is segmented by types of energy such as hydroelectric power, bioenergy, wind power energy, and solar energy. End-use segments include industrial, residential, and commercial sectors, with the industrial segment anticipated to expand rapidly.
The market's expansion is fueled by rising consumer purchasing capacity, population growth, and the increasing cost of traditional fuels. Despite potential setbacks from policy changes, the ambitious alternative energy targets present vast opportunities for eco-friendly energy companies.
Industry reports and market data indicate that the renewable energy industry in the UK is expected to benefit from supportive government policies. The market forecast suggests significant growth, positioning the UK as a leader in the renewable energy sector. Industry research and market analysis provide a comprehensive overview of the market trends, growth rate, and market value.
The industry's growth is supported by increasing energy consumption and the limitations of traditional power sources. Market segmentation reveals that wind power energy is expected to hold a major market share. Industry statistics and market outlook highlight the positive trajectory of the sector.
In summary, the UK's renewable energy market is set for significant growth, driven by supportive policies, increasing energy consumption, and a shift towards sustainable energy sources. The industry outlook and market review suggest a promising future for the sector, with numerous opportunities for growth and development.
United Kingdom Renewable Energy Market Report Snapshots
