Market Insight Report UK’s low carbon energy journey
October 2024
The UK’s journey towards a low carbon energy future hit a series of milestones during Q3 as wind takes the lead.
During Q3 2024, the UK made significant progress on its journey towards a low carbon energy future. In Q3 alone renewable sources generated 26.2TWh of electricity, more than any other Q3 on record. Renewable energy made up 52% of the UK’s electricity mix.
UK’s exit of coal power
In late September, the last coal-fired power station left in the UK was shut down, bringing 142 years of coal generation to an end 1. With the closure of Uniper -owned Ratcliffe-on-Soar power station in Nottinghamshire, the UK has become the first G7 nation to exit coal-fired power.
Coal has been on a declining trend, which accelerated in the last 10 years, from making up for 22% of the power mix in Q3-2014, to just 0.3% in the same period this year.
As a result, non-renewable power, which also includes gas, declined to its lowest quarterly level ever recorded with just 13.7TWh of volume in Q3 2024.
Nuclear energy in the UK
The UK government recognises nuclear as zero carbon. Energy from nuclear power in the past 10 years hit a peak in 2017 and has since reached its highest Q3 volume since Q3 in 2020.
Comparing Q3 over the last 10 years for nuclear generation
Wind takes the lead
More records were smashed in Q3 2024. Electricity generated from wind was the greatest contributor to the UK’s power mix for the fourth consecutive quarter. Wind made up 26% of the power mix, this was the same as Q2 2024.
Percentage of wind in the UK power mix over the last ten years
The UK has doubled wind capacity in just seven years. It took 26 years to install the first 15GW of wind energy. According to Renewable UK 2, the trade association for the wind, wave and tidal industry, the country’s wind generation capacity reached 30GW.
Gas energy generation
Gas was the second-largest source of energy at 22%, followed by imports at 17%.
Electricity generation from gas in Q3 2024 dropped to its second-lowest quarterly level on record at 13.5TWh, whilst imports reached its highest Q3 volume to date at 11TWh.
Imported energy
The UK imports power through a series of underwater cables known as interconnectors. France is the main source of imported electricity to the UK, primarily from nuclear plants. This is followed by hydro generation from Norway.
Possibly favourable interconnector prices could indicate why imported electricity is at a record high.
Solar energy as part of the UK power mix
The UK government has committed to tripling solar power capacity from 14GW to 50GW by 2030. The recent Allocation Round 6 procured 3GW of solar capacity, the highest amount yet. This is more than 1GW greater than the Allocation Round 5 3. Electricity produced by solar panels increased slightly by 0.3 TWh from Q3 2023 to Q3 2024.
Biomass
Biomass accounted for 7% of the mix with 4.6TWh for the third quarter in a row.
Electricity generation over the past 10 years
Overall, UK electricity generation hit a record low during Q3 2024 at 62.5 TWh, down 3% compared to the same quarter last year.
There was a gradual decline when comparing Q3 versus the same quarter over the last 10 years.
The decrease could be explained by…
- Lower electricity demand mainly from industrial and corporate users
- Warmer temperatures in Q3
- Higher energy prices
- More energy-efficient devices
- Slight increase in on-site energy generation
Summary
During Q3 2024, the UK made huge strides towards a low carbon energy future. Renewable sources generated a record 26.2TWh, making up 52% of the electricity mix. The UK also marked the end of coal power with the closure of its last coal-fired station. Wind power led the mix at 26%, and nuclear energy reached its highest Q3 volume since 2020. Gas generation fell to its second-lowest level, while imports hit a record high. Solar capacity is set to triple by 2030, and biomass maintained a steady 7% share. Overall, electricity generation hit a record low which was down 3% compared to the same period last year.
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