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The United Kingdom is experiencing significant growth in its renewable energy sector, with renewables accounting for over 43% of the country's total electricity generation in 2023. This figure is expected to reach 50% by 2025 and 70% by 2030, driven by government initiatives, declining costs of renewable energy technologies, and growing consumer demand for clean energy. The UK possesses abundant renewable energy resources, particularly in offshore wind, solar energy, and hydropower, making it well-positioned to achieve its ambitious renewable energy targets.
The UK government is committed to promoting renewable energy development and has set a target of achieving 70% renewable energy consumption by 2030. The government actively supports the sector through various procurement measures, including:
The Energy Act 2013, which establishes a framework for promoting renewable energy
The Renewable Energy Directive (RED II), which sets EU-wide targets for renewable energy consumption
The Contracts for Difference (CfD) scheme, which provides subsidies for renewable energy projects
The UK government procures a diverse range of renewable energy products and services, including:
Offshore wind energy: Offshore wind power is gaining significant traction in the UK, with over 14 gigawatts (GW) of installed capacity and plans for further expansion.
Solar photovoltaic (PV) panels: Solar PV is another major focus area for the UK's renewable energy procurement, with over 15 gigawatts (GW) of installed capacity.
Hydropower: Hydropower is a well-established source of renewable energy in the UK, with over 5 gigawatts (GW) of installed capacity.
The top authorities overseeing renewable energy procurement in the UK are:
The Department for Business, Energy and Industrial Strategy (BEIS)
The Office of Gas and Electricity Markets (Ofgem)
The Low Carbon Energy Fund (LCEF)
Major companies that have secured significant renewable energy procurement contracts in the UK include:
Ørsted: Ørsted is a global leader in offshore wind power and has a strong presence in the UK, with several large-scale projects under development and over 10 gigawatts (GW) of installed capacity.
EDF Renewables: EDF Renewables is a French renewable energy company with a growing portfolio of projects in the UK, including offshore wind, solar, and hydropower.
RWE Renewables: RWE Renewables is a subsidiary of German energy company RWE Group and is a leading developer of renewable energy projects in the UK, with over 4 gigawatts (GW) of installed capacity.
ScottishPower: ScottishPower is a Scottish energy company with a diversified portfolio of renewable energy assets, including offshore wind, solar, and hydropower.
SSE Renewables: SSE Renewables is a subsidiary of Scottish energy company SSE and is a leading developer of renewable energy projects in the UK, with over 3 gigawatts (GW) of installed capacity.
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