In numbers: How the UK’s energy mix is changing

Renewables exceed half of UK electricity generation for two consecutive years

The UK electricity system has passed a significant threshold. Renewables supplied more than half of the country’s power for two years running. Government data confirms that renewable sources provided 50.4% of UK electricity in 2024, followed by 52.5% in 2025. These figures mark the first and second consecutive years that renewables have accounted for more than half of total generation.

This shift reflects a decade of infrastructure investment and policy support. However, the picture is specific to electricity generation. The UK economy as a whole still depends heavily on fossil fuels for heating buildings and powering transport. Therefore, the electricity sector story is not yet the whole energy story.

For businesses, this matters in several ways. Energy costs, contract terms, and carbon reporting requirements are all shaped by the changing fuel mix. In addition, public sector tenders and supply chain expectations increasingly reflect the transition toward low-carbon power. Understanding what has changed, and what it means for your operations, is now part of standard commercial planning.

Government data confirms renewable energy now dominates electricity supply

The Department for Energy Security and Net Zero published figures showing that renewables reached 50.4% of UK electricity generation in 2024. This was the first time they exceeded half of total output. The following year, the share rose again to 52.5%, consolidating the milestone and making it clear that 2024 was not an anomaly.

Low-carbon sources as a whole, including both renewables and nuclear power, supplied 64.8% of electricity in 2025. Nuclear output fell slightly during the year. Nevertheless, the combined contribution from non-fossil sources remained above two thirds of the total mix.

Meanwhile, fossil fuels continued to shrink as a proportion of electricity generation. Gas remains the largest single fossil source in Great Britain’s power system. However, its share has declined markedly compared with levels seen a decade ago. Coal generation, once dominant, has nearly disappeared from the UK grid.

The same government data set also tracks primary energy, which includes all forms of energy consumed across the economy. Low-carbon sources accounted for 21.7% of UK primary energy in 2024, up from 20.8% in 2023. This broader measure moves more slowly because it includes transport fuels and heating, where fossil fuels still predominate.

Wind power has driven most of the growth in renewable electricity. Solar, biomass, and hydroelectric generation have also contributed. Onshore and offshore wind farms now form a substantial part of the UK generation fleet. Consequently, renewables have moved from niche status in the early 1990s, when they provided around 2% of electricity, to a dominant position today.

Coal exit and wind expansion reshaped the grid over a decade

The current electricity mix is the result of changes that began in earnest around 2010. At that time, coal still generated a significant share of UK power. Over the following decade, coal plants closed in response to environmental regulations, carbon pricing, and competition from cheaper gas and renewables.

By 2023, renewables and low-carbon sources had already overtaken fossil fuels in electricity generation. The 2024 and 2025 figures confirm that this transition has continued. In fact, the two consecutive years above 50% suggest a structural shift rather than a temporary spike.

Offshore wind capacity expanded rapidly during this period. Government contracts awarded guaranteed prices to wind developers, making large projects financially viable. Onshore wind also grew, although planning constraints in England limited some expansion. Solar farms proliferated across the UK, particularly on agricultural land and commercial rooftops.

Nuclear power provided a stable baseload contribution. However, several older nuclear stations reached the end of their operational lives and closed. As a result, nuclear output has declined slightly in recent years. Plans for new nuclear plants are in progress, but construction timelines are long.

Interconnectors linking the UK to European grids also played a role. These subsea cables allow electricity imports when prices are favourable. Consequently, the UK can draw on renewable power generated elsewhere, particularly from Norwegian hydro and continental wind farms.

What businesses should understand about the electricity transition

Several practical implications follow from the shift toward renewables. First, electricity prices are now less directly tied to global gas prices. Renewable generation has no fuel cost, so a higher renewable share can moderate wholesale power prices when wind and solar output is strong. Nevertheless, gas-fired power stations still set the marginal price during periods of high demand or low renewable output.

Second, carbon reporting requirements for many businesses include Scope 2 emissions from purchased electricity. As the grid decarbonises, those reported emissions fall automatically. Companies that buy electricity from the UK grid today are purchasing power with a much lower carbon intensity than five or ten years ago. This improves reported carbon footprints without operational changes, although businesses still need accurate data on their consumption.

Third, the reliability characteristics of the electricity system are changing. Wind and solar output vary with weather conditions. Therefore, the system requires greater flexibility from other sources, including gas plants, battery storage, interconnectors, and demand-side management. For some businesses, this creates opportunities to adjust consumption patterns in response to price signals. Time-of-use tariffs and demand response contracts are becoming more common.

Fourth, public sector procurement increasingly reflects decarbonisation goals. Central government frameworks, including PPN 06/21, require suppliers to report carbon emissions and demonstrate progress toward net zero. A cleaner electricity grid helps, but suppliers must still show that they understand their emissions and have plans to reduce them. Consequently, businesses competing for public contracts need robust carbon data and credible reduction strategies.

Fifth, corporate power purchase agreements (PPAs) are now a mature market in the UK. Large energy users can contract directly with renewable generators, securing long-term price certainty and renewable electricity guarantees. These agreements can improve ESG credentials and hedge against future price volatility. However, they require careful financial and legal assessment.

Finally, supply chain expectations are shifting. Major manufacturers and retailers increasingly ask suppliers to demonstrate low-carbon operations. Electricity consumption forms part of this scrutiny. Businesses that can show they operate in facilities powered by renewables, or that purchase renewable electricity, may gain commercial advantage in tenders and supplier assessments.

Key facts about the UK’s renewable electricity milestone

• Renewables supplied 50.4% of UK electricity in 2024, the first year they exceeded half of total generation.
• The share rose to 52.5% in 2025, marking two consecutive years above 50%.
• Low-carbon sources, including renewables and nuclear, provided 64.8% of electricity in 2025.
• Primary energy from low-carbon sources reached 21.7% in 2024, up from 20.8% in 2023.
• Wind power drove most renewable growth, with solar, biomass, and hydro also contributing.
• Fossil fuels have declined steadily as a share of electricity, though gas remains the largest single fossil source.
• The shift marks a structural change in the UK power system, not a temporary fluctuation.

Cost, compliance, and contract considerations for your business

The transition to renewable electricity creates both opportunities and requirements for UK businesses. Understanding how to respond depends on your sector, energy use, and commercial situation. However, several considerations apply broadly.

Energy procurement strategies should now account for the changing generation mix. Businesses with flexible consumption can benefit from time-of-use tariffs that reflect periods of high renewable output. Similarly, companies with large electricity loads might explore corporate PPAs or on-site renewable generation. These approaches can lock in lower long-term costs and improve sustainability credentials.

Carbon reporting obligations are growing. Many businesses must now calculate and disclose Scope 1, 2, and 3 emissions. The grid’s lower carbon intensity helps reduce Scope 2 emissions automatically. Nevertheless, accurate measurement and reporting remain essential. Businesses should ensure they have systems in place to track electricity consumption and apply the correct emissions factors.

Public sector suppliers face particular scrutiny. PPN 06/21 and similar procurement policies require suppliers to publish carbon reduction plans and demonstrate progress. Our net-zero program for carbon reporting compliance helps businesses meet these requirements and strengthen their bids for public contracts. The cleaner electricity grid is part of the solution, but not the whole answer.

Supply chain pressure is also increasing. Large buyers in retail, manufacturing, and logistics are setting science-based targets and cascading emissions reduction expectations to suppliers. Businesses that can demonstrate low-carbon operations, including renewable electricity use, are better positioned to retain and win customers. Conversely, those without credible decarbonisation plans may face commercial disadvantage.

Finally, consider the longer-term direction. The government has committed to decarbonise the electricity system by 2030. This means renewables and low-carbon sources will continue to grow as a share of the mix. Fossil fuel generation will decline further. Businesses that adapt now, rather than waiting, can spread costs over time and gain competitive advantage.

Authoritative sources for further detail on UK energy data

The Department for Energy Security and Net Zero publishes quarterly and annual energy statistics. These data sets provide detailed breakdowns of electricity generation by source, alongside figures for energy consumption, imports, and emissions. The Department for Energy Security and Net Zero website hosts all official releases and is the primary source for accurate, up-to-date information.

For historical context and long-term trends, the Digest of UK Energy Statistics offers comprehensive annual data going back decades. This resource is particularly useful for understanding how the fuel mix has evolved since the 1990s and for comparing electricity generation with broader energy consumption.

Businesses seeking practical guidance on carbon reporting and renewable electricity can refer to the government’s greenhouse gas conversion factors, which are updated annually. These factors allow businesses to convert electricity consumption into carbon emissions for Scope 2 reporting. Additionally, our ESG compliance and carbon reporting services provide support for businesses navigating these requirements and integrating them into procurement and tender processes.