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UK renewable energy sector set to top £41bn by 2030

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Home » UK renewable energy sector set to top £41bn by 2030

The UK’s renewable sector is increasing significantly in value – but policy changes are still required to meet ambitious government targets, according to new research.
The Association for Renewable Energy and Clean Technology (REA) has published its annual REview report, assessing the situation in the UK’s renewable energy and clean tech sectors.
The sector has seen strong growth, up 6% to £24.38bn in 2022/23 (the latest stats available) indicating that figures will reach more than £41bn by 2035.
The report found that energy transition as a whole was making progress, with total renewable energy consumption rising 14% to 15.5% in 2023, and renewable energy sources supplying almost half of all electricity needs in the UK (47%), an increase of 15% from the previous decade.
Renewable energy now also meets around 10% of the UK’s heat requirements and 6% of its transport demands.
Wind is the UK’s biggest renewable electricity source, followed by bioenergy, statistics show.
In terms of heat and cooling, 9.4% of demand was met by low-carbon heat, up 3.7% from a decade ago with biomass still the largest source of heat.
A total of 250,000 zero-emissions vehicles now registered saw renewable transport options rise 6% in 2022/23.
The REA reported that there are now 60,000 electric vehicle (EV) charge points available in the UK – up more than 15,000 compared with the previous year’s figures. Renewable transport fuels also comprise 8% of all road fuels, saving 82% in emissions compared with fossil fuels.
Employment within the renewable energy sector has also risen and now employs 143,000 people across 14 sub-sectors, with solar photovoltaic leading job growth and accounting for around one-quarter of employees. Biofuels (18% of employees) and offshore wind (4%) are the next largest employers.
But despite high growth across the sector, the REA indicated that further policy changes will be required to maximise the full potential of the industry.
Key areas of challenge include grid infrastructure investment, local incentives and co-ordinated policies between departments, the report said.
The REA suggested that an Office for Net Zero Deployment should be established to monitor targets and a UK Green Taxonomy implemented to standardise green investment definitions.
And it recommended the government expand green jobs training programmes to upskill workers in net-zero work, and address energy planning constraints to better support infrastructure and the circular economy.
REA CEO Trevor Hutchings said: “As the Prime Minister has reiterated, renewable energy and clean technology is driving economic growth and creating jobs on a global scale. In the UK, it is also providing nearly half of the country’s electricity, but to reach our net-zero goals, we need to accelerate action.
“This report highlights the critical role of strategic investment in infrastructure and the need for cohesive policy across government departments in unlocking the sector’s full potential—and in winning the global race for green investment, economic growth, and jobs.”
Syntegra MD Alan King said: “This report is encouraging news with growth in all areas of renewable energy but should act as a wake up call to industry and individuals that more needs to be done in terms of Government direction to support and sustain development in this key area.
“We are on the right trajectory undoubtedly but there are clearly some other quick wins which need to be implemented as a matter of urgency.
“We will support any business through this transition but clearer policy definition will be helpful to all concerned to hasten much needed improvements.”

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