Grid reform key to delivering UK’s clean energy ambition
Today’s energy production, trade, electricity generation and consumption statistics show that primary energy consumption in the UK on a fuel input basis fell by 4.9%, but indigenous energy production rose by 2.2%.
Electricity generation by Major Power Producers was marginally down with gas and renewables up 7.9% and 2.3% respectively, but nuclear was down 14%. Low carbon share of electricity generation by Major Power Producers fell by 1.6%, whilst fossil fuel share increased 1.6% to 30.8%.
Sheena McGuinness, Co-Head of Energy and Natural Resources at RSM UK, said: “Despite the continued global focus on shifting towards nuclear and renewables, the latest data shows a mixed picture with renewable energy generation up and nuclear on a downward trend, while fossil fuels increased again.
“The transition to nuclear will not happen overnight. We’ve recently seen Sweden’s Vattenfall shortlist Rolls-Royce SMR to supply a series of small modular reactors (SMR), following its selection by Great British Nuclear to build three SMR units in the UK. These projects reflect the UK’s capability to innovate and be a leader in nuclear energy generation, provided the government delivers on its forthcoming Clean Energy Workforce Strategy and builds a skilled workforce to drive expansion across clean energy industries.
“More encouragingly, the uptick in renewable energy generation could be boosted further, amid news last week that a record amount of renewable energy capacity was granted planning permission in Q2 2025. This suggests that the government’s ambition to make Britain a ‘Clean Energy Superpower’ is finally gaining momentum. Energy businesses also continue to push for renewables projects, with the number of planning applications also growing over the same period. As these granted projects come to fruition, it’s key that the government commits to reforming the grid. With further details expected on the Connections Accelerator Service in Q4 2025, this should also help to streamline grid access for major investment projects.”
She added: “Given the complexity and anticipated long-term transition to net zero in the UK, energy businesses will want more certainty on investment and infrastructure in the upcoming Autumn Budget 2025. While capital funding was announced in last year’s Autumn Budget, businesses need more visibility on long-term funding pipelines to plan with confidence. However, with the latest fall in Energy Profit Levy revenues and growing pressure on the public purse, there is concern that fiscal constraints could limit the government’s ability to support clean energy businesses.”