The UK energy industry is at a pivotal moment, driven by ambitious climate goals and significant economic contributions. Since the UK Climate Change Act of 2019 set a target of net zero emissions by 2050, the sector has experienced substantial growth and transformation. In 2022, the energy industry supported over 734,000 jobs and contributed $190 billion to the economy as large financial injections stimulate the restructuring and developing of a modern energy sector that’s in line with the values surrounding sustainability and green energy. In 2022, the energy sector invested $17 billion in the UK, accounting for 7% of total investment. Looking ahead, there is over $125 billion in planned investments in new energy sources over the next decade. These investments aim to enhance energy security and build a low-carbon economy, presenting a plethora of opportunities for international collaboration, particularly with U.S. companies.
The UK government’s ‘Powering Up Britain’ energy manifesto, released in March 2023, outlines a comprehensive strategy for clean energy development. The plan prioritizes nuclear energy, offshore wind, and hydrogen power while also emphasizing energy efficiency, electric vehicle infrastructure, and carbon capture, utilization, and storage (CCUS). These initiatives are designed to not only reduce carbon emissions but also to fortify the UK’s energy independence and security.
In 2022, the UK’s total energy production was 110.2 million tons of oil equivalent, marking a 3.1% increase from the previous year. Oil and natural gas remained significant, accounting for 38% and 34% of total production, respectively. However, oil production saw a decline, while natural gas and primary electricity production, which includes wind, solar, nuclear, and hydro, experienced growth. Notably, renewable energy use surged, despite a slight decrease in overall energy demand. The electricity generation mix in 2022 included 38.4% from gas, 28.8% from wind and solar, 14.7% from nuclear, 12.7% from other renewables, 1.7% from coal, and 3.7% from other sources. Additionally, the UK exported more power than it imported, underscoring its evolving energy landscape.