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The UK’s journey towards a clean energy future is gaining momentum, with 2024 poised to be a landmark year for renewable energy. Forecasts suggest that, for the first time in history, renewable power sources such as wind, solar, and hydropower could collectively generate more electricity than fossil fuels. This shift underscores the growing dominance of clean energy in the UK’s power mix and highlights a significant turning point in the nation’s path to a more sustainable future.
As the demand for greener energy intensifies, the role of renewables in shaping the future of energy generation is becoming increasingly critical. For businesses, property managers, and corporate stakeholders, this transition presents both challenges and opportunities. Understanding the implications of this shift is essential for those looking to future-proof their operations and support the UK’s clean power mission.
The Current State of the UK’s Power Mix
Recent analysis of UK electricity generation reveals a pivotal moment in the energy sector. Wind, solar, and hydropower are set to generate 37% of the UK’s electricity this year, while fossil fuel generation (primarily gas) is expected to drop to 35%. This would mark the first time in UK history that renewables have overtaken fossil fuels as the primary source of electricity generation for an entire calendar year.
This transition is remarkable considering the energy landscape just three years ago, when fossil fuels accounted for 46% of electricity generation, compared to renewables at 27%. The closure of coal-fired power plants and the rapid expansion of offshore wind and solar farms have significantly contributed to this shift. While the UK has long aimed to reduce its reliance on coal, 2024 will be remembered as the year gas generation began to be significantly displaced.
What’s Driving the Rise of Renewables?
Several factors are driving the growth of renewable energy in the UK. These include:
New offshore and onshore wind farms, coupled with expanding solar capacity, are playing a crucial role in displacing gas-fired electricity generation. Major offshore wind projects are expected to come online in 2025 and 2026, adding over 3.8GW of capacity to the national grid.
With coal now phased out, the focus has shifted to reducing the UK’s reliance on gas. Gas-fired generation is expected to fall by 13% this year, reaching its lowest share of the power mix in nearly 30 years. This shift is not only better for the environment but also helps shield businesses and consumers from volatile gas prices.
The UK government’s 2030 clean power mission aims to achieve a 95% clean power system by the end of the decade. This policy provides strong support for renewables, grid upgrades, and energy storage solutions to ensure grid reliability. In addition, the upcoming Planning and Infrastructure Bill is expected to streamline the development of renewable energy projects, accelerating progress towards the 2030 target.
Why This Matters for UK Businesses
For businesses, especially those in real estate, energy management, and corporate sustainability, the shift from fossil fuels to renewables represents a crucial moment. Clean energy is no longer a niche investment — it is fast becoming a market standard. The business case for switching to cleaner power sources is more compelling than ever.
Fossil fuel price volatility has posed significant risks to businesses in recent years. With renewables becoming a larger part of the UK’s power mix, energy prices are expected to stabilise over time. Businesses can also protect themselves from future energy price hikes by opting for renewable energy contracts or power purchase agreements (PPAs) with renewable providers.
With stakeholders, investors, and regulators placing greater emphasis on Environmental, Social, and Governance (ESG) commitments, businesses are under pressure to demonstrate clear progress towards sustainability goals. By shifting to renewable power, businesses can directly reduce their Scope 2 emissions (those related to purchased electricity) and strengthen their position as responsible corporate citizens.
The UK government’s 2030 clean power mission is a clear indicator of the direction of future energy policy. Businesses that fail to align with this vision could face regulatory risks, additional carbon-related costs, and reduced competitiveness. Companies that proactively shift towards renewable energy will be better positioned to meet regulatory requirements and reduce exposure to future policy changes.
How Can Businesses Support the Clean Energy Transition?
For companies looking to reduce their reliance on fossil fuels and embrace clean energy, there are several practical steps to consider:
An energy audit helps identify areas where efficiency gains can be made. By understanding how much energy your business uses and where it is being consumed, you can make informed decisions about energy-saving measures. This can also help determine whether on-site renewable energy (like solar) is a viable option.
If on-site renewable generation is not feasible, businesses can still access clean energy through Power Purchase Agreements (PPAs). These long-term contracts allow companies to purchase renewable energy directly from providers, locking in prices and ensuring long-term cost predictability.
Optimising a Building Management System (BMS) can significantly improve energy efficiency. A well-configured BMS can monitor and manage energy usage in real time, helping to identify areas for improvement. This not only reduces energy bills but also supports ESG targets.
Switching to renewable energy suppliers can provide immediate benefits. Renewable energy contracts guarantee that your electricity is sourced from green suppliers, helping to reduce your Scope 2 emissions and support your ESG goals.
Navigating the shift to renewables can be complex, especially with the evolving nature of the UK’s energy market. Consulting with your energy provider or a sustainability consultant can help you identify the best strategy for your business. They can offer tailored advice on renewable contracts, PPAs, and energy efficiency measures.
The Role of Inteb in the Clean Energy Transition
As businesses prepare for a future driven by renewable energy, having the right partner on your side is essential. Inteb is here to support organisations on their journey to a cleaner, more sustainable future.
How Inteb Can Help:
Energy Audits and Benchmarking: We conduct thorough assessments of your energy use, identifying opportunities for cost savings and efficiency improvements.
Renewable Energy Procurement: Our experts can guide you through the process of sourcing clean energy contracts and power purchase agreements (PPAs) to support your sustainability goals.
Sustainability Strategy Development: We work with businesses to create actionable energy and carbon reduction strategies that align with the UK’s clean power mission.
Compliance and Reporting: Inteb ensures businesses remain compliant with UK energy regulations, such as SECR (Streamlined Energy and Carbon Reporting) and ESOS (Energy Savings Opportunity Scheme).
The Future is Renewable — Are You Ready?
The UK’s shift towards a cleaner, more sustainable energy future is no longer a distant goal — it’s happening right now. With renewables poised to overtake fossil fuels as the UK’s primary energy source in 2024, it’s clear that businesses must be ready to adapt.
To stay ahead, organisations need to plan for a renewable future. Whether it’s through energy audits, BMS optimisation, or PPAs, the time to act is now. Don’t be left behind in the clean energy revolution. Take control of your energy strategy and position your business for success in a low-carbon future.
For expert guidance on transitioning to renewable energy and optimising your energy use, contact Inteb today. Our team of sustainability experts is ready to help you unlock cost savings, meet ESG targets, and prepare for a more sustainable future.
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