The quest for net zero: how far has the UK come?

The shift to renewable energy is well underway. In 2020, the UK’s electricity came predominantly from renewable energy for the first time in history, with 43% of power coming from a mix of wind, solar, bioenergy and hydroelectric sources. By 2023, zero-carbon power sources in the UK’s electricity mix outperformed traditional fossil fuel generation by providing 51% of electricity, compared to 32% from gas and 1% from coal.

Since 1990, the UK has reduced its greenhouse gas emissions by over 50%. 2023 was the “greenest” year on record, with carbon intensity averaging 149 grams of CO2 per kWh. Last year also saw the highest ever solar generation record, putting the UK in 17th place globally for solar generation. In 2022, the UK was in fifth place in the world for generating wind power, with 25% of the UK’s energy coming from wind, thanks to the success of its offshore wind sector.
 

The challenges of switching to renewable energy

Despite these impressive figures, there’s little room for complacency: while the UK renewables sector is strong, 75% of total energy use still comes from fossil fuels. The country is faced with two major challenges: continuing to replace electricity from fossil fuels with low-carbon sources; and using clean electricity for transport and heating to reduce the demand for oil and gas. Additionally, buildings must be made more energy-efficient so that they need less gas.

According to Deloitte, the UK has a long way to go to achieve net zero: decarbonizing public and private transport, homes and offices, as well as completing the decarbonization of power generation. This is heavily dependent on the choices and decisions of individual organizations and also on the strength of government mandates and incentives to encourage transitioning to low-emission technologies.
 

Where is renewable energy currently being used in the UK?

Many UK businesses have begun switching to renewable energy. In some sectors, this simply involves choosing appropriate energy suppliers, although many companies in the manufacturing sector have signed Power Purchase Agreements (PPAs) to achieve their sustainability goals. These agreements also enable companies to lock in long-term pricing for electricity, which helps to manage the risk of volatile power markets and saves on energy bills. Other companies have developed their own renewable generation, leading to greater long-term value.

Major electricity suppliers such as EDF Energy are leading the way in delivering low-carbon, affordable energy. In 2020, EDF committed to helping the UK achieve net zero by 2050. The company generates around 13% of the UK’s electricity, all of which is zero carbon at the point of generation. It operates five nuclear power stations, more than 30 offshore wind farms and three onshore wind farms, as well as two battery sites.

Ray Valley Solar in Oxfordshire, part of the social enterprise The Low Carbon Hub, is the largest community-owned solar park in the UK. It was connected to the National Grid in 2022 and generates 19.5 GWh of green electricity every year, resulting in 4,000 tonnes of CO2 savings annually.
 

Looking to the future: potential for growth of renewable energy

Statistics from the National Grid Group suggest that the UK’s renewable capacity will increase dramatically over the coming years. There are already plans to increase offshore wind output to 50 gigawatts (GW) by 2030, aided by generous financial initiatives from the government. Solar capacity is also forecast to grow to around 70GW in the same time frame.

The good news for businesses is that switching to renewable energy has never been easier. Deloitte identifies three main areas of development which will help businesses aiming to decarbonize:
 

  • Falling cost of renewables: in some cases, such as offshore wind, renewable energy can actually be cheaper than conventional sources. Some energy retailers provide a Renewable Energy Guarantee of Origin (REGO) certificate, which provides transparency about the percentage of their electricity that comes from renewable sources.
  • Advances in energy storage: one of the main disadvantages of renewable energy has traditionally been its dependence on weather conditions, meaning that supply is inconsistent. It’s now possible to store excess power during times of low demand and high production using batteries, pumped water and other innovative methods. Battery storage can be scaled up to meet the short-term energy storage demands of most small- to medium-sized businesses.
  • Hydrogen: this has the potential to replace natural gas in heating, industrial processes and hard-to-electrify transport such as planes, ships and HGVs. Hydrogen can also be used as a means of energy storage.