Skip to main content



UK Energy Market in Brief: 2024 and beyond

Published date: April 2024

off-shore wind turbines
How we power our homes and businesses in the UK is transforming for the good. From the rise of renewables to the demise of fossil fuels, there is a sustainable path for the UK.  

Your Co-op Energy is ahead of the curve offering the UK's only Community-Powered Tariff with 100% renewable energy. Shifting the tide on energy with a sustainable ground-up approach, a truly cooperative way of achieving zero-emission energy on a nationwide scale.  

UK Renewable Energy on the Rise 

In 2024, only one remaining coal power plant is still in use, which will start winding down its energy production at the end of the year. This paves the way for renewable energy sources like wind, solar and hydro to take centre stage. In fact, wind power saw a staggering 25% jump in 2022 alone and on an average day in 2024, wind typically generates over 40% of the UK's power supply. 

Energy Use: A Shift in the UK Energy Market 

As we become more efficiency conscious and recover from an inflated energy market, there has been an overall reduction in the UK's energy usage. The government's Energy Trends March 2024 report suggests a 1.6% decrease in 2023 compared to the previous year, meaning energy supplies are under less strain so more renewable energy can be utilised. 

While transportation use rose by 3.1% in 2023, domestic energy consumption has hit a record low! This signifies a positive shift towards a more mindful approach to energy use, benefiting our finances and the environment. Interestingly, household energy consumption in 2023 fell by a record 6.5%, the lowest level in at least 50 years.  

What does the reduced energy demand mean for UK renewable energy?

A lower energy demand and less imported energy have meant the UK is now more reliant on domestic power supply, creating even more space for renewables. Proof of this space being filled is the record share of renewable energy generation in 2023 (47.3%), with wind power being the most significant.  

Looking forward, the lower energy prices due to renewables could incentivise further consumption reduction through efficiency upgrades, creating a positive cycle for renewables use. The long-term goal for renewables is to decouple energy consumption from economic growth. In other words, with increased economic activity, renewable energy use can keep rising to meet demand until 100% is supplied.  

The Road Ahead: Balancing UK Goals and Affordability

The UK has rightfully set ambitious targets to achieve net zero emissions by 2050 which means that any greenhouse gases still produced are offset by removing the equivalent emissions from the atmosphere.  

However, with the ongoing cost of living crisis, ensuring affordable energy for everyone remains a top priority. The government is actively exploring ways to balance these objectives. This might involve tax breaks for low-carbon technologies like heat pumps, which can significantly reduce reliance on traditional heating methods.  

Energy UK, the trade association for the energy industry, recently called for tax cuts for households and businesses to incentivise investment in these technologies, highlighting the success of the increased Boiler Upgrade Scheme grant

To reach our collective net zero target by 2050, we all need to make changes and switching to 100% renewable energy is an effortless way of significantly reducing your carbon footprint.  

Interesting Stats to Keep an Eye On

  • Despite the overall decline, transport remains the biggest energy consumer in the UK, accounting for 34% of final consumption in 2022
  • The government froze fuel duty on petrol and diesel for the 14th year in a row in the 2024 Spring Budget, a policy that may discourage a shift towards more fuel-efficient vehicles. 

Keep Your Eyes Peeled!

The UK energy market is dynamic and constantly evolving. As new technologies emerge and policies shift, the future of energy promises to be exciting. Stay tuned for further updates from Your Co-op Energy and the Department for Energy Security and Net Zero.  

We're here to keep you informed about this ever-changing landscape and supply a lasting renewable energy solution at the best value. 

Switch to 100% renewable energy with Excellent rated customer service on Trustpilot.  


There are currently no comments, be the first to review.

Leave us your comment

You need to login to submit a comment. Please click here to log in or register.

Back to Article Listing