United Kingdom 2024

Energy Policy ReviewUnited Kingdom 2024 INTERNATIONAL ENERGYAGENCY The IEA examines thefull spectrumof energy issuesincluding oil, gas andcoal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement andmuch more. Throughits work, the IEAadvocates policies thatwill enhance thereliability, affordabilityand sustainability ofenergy in its31member countries,13associationcountries and beyond. IEA membercountries: IEA associationcountries: AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraine This publication and anymap included herein arewithout prejudice to thestatus of or sovereignty overany territory, to thedelimitation of internationalfrontiers and boundaries andto the name of any territory,city or area. The EuropeanCommission alsoparticipates in thework of the IEA Source: IEA.International Energy AgencyWebsite: www.iea.org Executive summary The United Kingdom’s energy transition is poised for itsnext phase The IEA peer review of the United Kingdom (UK) took place over 20-24 November2023. The review came at a timely moment, as the United Kingdom is in theprocess of reviewing its energy transition strategy to align with industrial andenergy security goals. The United Kingdom was one of the first major economies to legally establish anet zero target in 2019. It was also an early mover in setting legally binding carbonbudgets and carbon pricing as well as creating an independent body, the ClimateChange Committee, with statutory authority to track the government’s progresstoward its climate targets. The United Kingdom met its first three carbon budgets (2008-12, 2013-17 and2018-22). Greenhouse gas (GHG) emissions in 2023 are estimated to be 53%lower than in 1990. Most GHG emissions reductions came from a decline in coaluse and an increase in renewable electricity generation. The United Kingdom has committed to lowering emissions by 68% from 1990levels by 2030 as part of strengthening its Nationally Determined Contribution tothe United Nations Framework Convention on Climate Change. It will, therefore,need to not only maintain but to accelerate action to reach the target. Continuingtomeet carbon budgets will become harder,as the abatement challengeincreases, requiring more policy action to support investment across more sectors. The government has a long list of targets and policies to support energy-relatedclimate change strategies. Since the IEA’s last review, the UK government has setout the wider context of its strategic priorities for the energy sector in severalpapers, including: the Energy White Paper (2020), the Ten Point Plan for a GreenIndustrial Revolution (2020), the Net Zero Strategy (2021), the British EnergySecurity Strategy (2022), Powering Up Britain (2023), Powering Up Britain: EnergySecurity Plan (2023), and Powering Up Britain: The Net Zero Growth Plan (2023).Such long-term planning is helpful to provide investment signals and determinethe expectations of various parts of the energy system. Equally important isensuring a stable and predictable policy environment. Looking ahead, the shiftfromstrategy setting to implementation will need to happen quickly,asinvestments toward 2030 and 2050 targets are needed right away. The electricity system will need to accommodatesizeable new growth in clean electricity The UK electricity sector has undergone major changes in recent years, with asizeable reduction in coal power generation and rapid deployment of renewableenergy sources. The government has ambitions to fully decarbonise the powersector by 2035 (subject to security of supply), deploy up to 50 gigawatts (GW) ofoffshore wind by 2030, increase solar capacity by 70 GW by 2035 and realise upto 24 GW of nuclear power by 2050. Historically, coal power was the main source of electricity generation in theUnited Kingdom,but since the IEA’s last review(2019),most of theUnited Kingdom’s coal-fired power plants have closed in line with plans to phaseout coal-fired generation by October 2024. In addition, nuclear’s share in electricity generation has also been declining toaround 15% of generation. However, the UK government has committed toensuring that nuclear continues to play an important role in the energy mix and istaking steps to revitalise its nuclear industry. Thereduction of electricity generation from coal and nuclear has beencompensated by increased electricity generation from natural gas and large-scaledeployment of renewables. Renewables have risen to reach 42% of the electricitymix in 2022, with renewable generation growing more than threefold since 2012,led by wind. In the coming years, the United Kingdom wil