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The renewable energy market in the United Kingdom is expected to grow at a CAGR of more than 9% during the forecast period of 2021-2026, reaching around 86.21 GW by 2026, up from 47.16 GW in 2019. The COVID-19 pandemic has severely affected the country with a large number of deaths and long-lasting lockdowns. However, factors such as supportive government policies and efforts to meet the rising power demand using renewable energy sources and to decrease the dependency on fossil fuels in order to reduce carbon emissions are significant contributors to the growth of the market. The declining costs of renewable technologies are becoming competitive with fossil fuel sources, and additional subsidies on renewables are driving the market further. Even with a flourishing renewable market, the changes in government policies related to small-scale solar such as the removal of subsidies are expected to have a negative impact on the residential solar segment during the forecast period.
- With the most cost-effective way of power generation, wind energy is leading the renewable energy market in the country. The United Kingdom is also one of the leading countries in the offshore wind market as of 2019.
- With ambitious offshore wind energy targets in place by 2030, huge market opportunities exist for wind energy market companies in the near future.
- The different policies adopted by the United Kingdom especially after the BREXIT is expected to aid the growth of the market
Scope of the report
The United Kingdom renewable energy market report includes:
Key Market Trends
Wind Energy to Drive the Market
- The wind energy installed capacity in the country reached 24.1 GW in 2019, representing an increase of 10.7% compared to the previous year's value. The United Kingdom is also one of the leading countries across the globe in terms of offshore wind energy with an installed capacity of more than 9.97 GW in 2019. With several ambitious projects already in the development phase, the government is aiming to reach 20 GW by the end of 2030.
- One of the major projects is the installation of East Anglia One offshore wind farm with a capacity of 714 MW. the United Kingdom government is all set for the development of East Anglia Two and East Anglia Three with capacities of 900 MW and 1400 MW respectively. Such large-scale projects are expected to aid the growth of the market in the coming years.
- Another significant installation is the Hornsea one, which is estimated to be operational by 2020, the United Kingdom will be operating the world’s largest offshore wind farm with a capacity of more than 1.2 GW generated by 174 turbines.
- In 2019, wind energy produced 64.1 TWh of electricity with an installed capacity of more than 21 GW, contributing 17% of the entire United Kingdom’s power demand. Offshore and onshore wind energy is provided almost equally in the country.
- Therefore the high growth rate of wind energy makes the United Kingdom one of the leaders in the renewable market and driving towards a green future.
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Uncertainties in the Government Policies
- The United Kingdom regulated Feed-in Tariff in 2010. This boosted the installation of solar panels at a tremendous rate, increasing the solar electricity from 4TWh in 2014 to 12.7TWh in 2019. But in March 2019, the government closed this scheme, this has negatively affected the growth in the solar market which has decreased by 1.4% in the 2018-2019 period.
- With the discontinuation of the Feed-in Tariff, the government introduced Smart Export Guarantee (SEG) modifying the FIT, which makes the energy suppliers pay the customers for every unit they are going to feed in the grid, although the energy suppliers are free to decide the rate for exported power.
- In June 2019, the government of the United Kingdom passed a law committing to achieve net-zero carbon emissions by 2050. For this, The United Kingdom is going to rely heavily on renewable like solar and wind. This is expected to aid the growth of the market.
- Additionally, from October 2019, the United Kingdom government has increased the Value added tax (VAT) on Energy Saving Materials (ESM) by 15%. With incremented VAT, the customers must pay a 20% tax on solar and storage affecting installers, which is going to increase net installation cost significantly. Considering the recent 20% VAT on the high installation cost of solar, public interest in the solar market can be affected negatively.
- The United Kingdom government’s policies and regulations are one of the significant factors that will be deciding the future of the renewable market in the United Kingdom. These different strategies can drive the market growth in either way.
The United Kingdom renewable energy market is partially fragmented. Some of the major companies include Vestas Wind Systems A/S, Siemens Gamesa Renewable Energy SA, Electricite de France SA , Renewable Energy Systems Ltd., and Ecotricity Group Ltd.
- In January 2021, the government of the United Kingdom announced that renewable electricity outpaced its fossil fuel generation for the first time in 2020 and this could remain the largest source of electricity in the future.
- In February 2021, the government of the United Kingdom have auctioned many new projects with large firms like BP participating. A total of six projects, representing just under 8 gigawatts (GW) of capacity, were successful in the auction. If built, they could provide enough electricity to power about 7 million homes.
- The government of the United Kingdom approved Cleve Hill solar farm in May 2020. It is sited on the Graveney marshes between Faversham and Whitstable, Kent in the United Kingdom. It will generate 350MW of electricity from 900 acres (360 ha) vertical solar panels. It is going to the largest solar farm when commissioned.
Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Renewable Energy Mix, 2019
4.3 Renewable Energy Installed Capacity and Forecast in GW, till 2026
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION - BY SOURCE
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
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 Electricite de France SA
6.3.6 The Good Energy Group
6.3.7 Renewable Energy Systems Ltd
6.3.8 Vestas Wind Systems A/S
6.3.9 Mitsubishi Corporation
6.3.10 Siemens Gamesa Renewable Energy SA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The United Kingdom Renewable Energy Market market is studied from 2018 - 2026.
What is the growth rate of United Kingdom Renewable Energy Market?
The United Kingdom Renewable Energy Market is growing at a CAGR of >9% over the next 5 years.
Who are the key players in United Kingdom Renewable Energy Market?
- Vestas Wind Systems A/S
- Siemens Gamesa Renewable Energy SA
- Electricite de France SA
- Ecotricity Group Ltd.
- Renewable Energy Systems Ltd .
Are the major companies operating in United Kingdom Renewable Energy Market.