Renewable energy now provides around 47% of the UK’s electricity, up from just 15% a decade ago.
According to the Association for Renewable Energy and Clean Technology (REA) REview 24 report, the UK’s renewable energy sector reached a market value of £24.38 billion in the 2022/23 fiscal year, demonstrating strong progress during difficult wider economic headwinds.
With projections estimating a market expansion to over £41b by 2035, the renewables sector is expected to play a major role in boosting the UK economy while securing a sustainable and independent energy future.
Key renewable sources such as wind, solar, and biofuels continue to outperform expectations, attracting robust investment and driving innovation across the sector.
However, it warned that an acceleration of renewables and decarbonisation is needed in the heat and transport sectors, where renewables account for only 9.4% and 6% of demand, respectively.
Overall, 15.5% of the UK’s energy (power, heat and transport) comes from renewable sources.
REA chief executive Trevor Hutchings said: “As the prime minister has reiterated in the last couple of days, 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.”
He added: “With the right approach, the UK can lead the world in clean energy, ensuring a sustainable, secure, and affordable energy future for all. Working with our 500 member organisations, the REA is committed to accelerating the journey to net zero.”
The sector also registered impressive employment growth, reaching nearly 143,000 jobs.
Employment surged particularly in solar and biofuels, with regions such as Yorkshire and the Humber leading in biomass-based roles, and the North East benefitting from large-scale offshore wind projects, including Dogger Bank, the world’s largest offshore wind farm.
However, the REA highlights that continued government action will be essential to unlock the sector’s full potential.
Meeting the UK’s ambitious net zero targets will depend on strategic investments in grid infrastructure, stable local incentives, and coordinated policies across government departments.
The REview 24 report calls for swift action to improve grid capacity, streamline planning processes, and enhance public engagement to support the transition.
“As the nation accelerates toward a net-zero economy, renewable energy remains at the forefront, setting the foundation for sustainable economic growth, job creation, and environmental resilience.
Energy minister Michael Shanks said: “These findings confirm that the government’s clean power mission is not only the right long-term choice for our country, but is essential to bolster our energy independence, protect people’s bills and help tackle climate change.
“Working hand in hand with our renewables industry, we’ve already secured a record-breaking 131 renewable projects in just four months. We’ve also set up Great British Energy, to help us go further and faster on the energy transition to win jobs and drive investment into our communities.”
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