The complexities of UK energy procurement

Rinnai’s Chris Goggin considers the roles different energies will play as we approach net zero and the

influence of international energy markets.

International geopolitics heavily influences global energy prices and distribution routes, as well as

highlighting the commercially driven nature of the global energy market.

The UK is moving towards clean renewables that are not subject to cost spikes nor the interfering

geopolitics that typically beset fossil fuels. In 2023, the UK energy mix consisted of 36.7% renewables, but by 2024 that share increased to 43.1%.

The current plan by the UK government is to increase naturally sourced energy extraction such as solar and wind power and to eventually cease fossil fuels. UK oil and gas usage has dropped over the last decade, with the energy mix falling from 58.1% fossil fuels in 2014 to 32.2 in 2023%.

The government is particularly keen on introducing an age of cheap and clean electrical power. A recent

government report – ‘Clean Power 2030 Action plan: A New Era of Clean Electricity’ – details its ambition of fueling UK domiciles and commercial properties with green electricity at low cost.

This document also provides further objectives in adding clean power to the UK national grid.

Renewables increasingly play a huge role in the UK domestic energy mix. Offshore wind will be increased

to 43 – 50GW, onshore wind will be expanded to 27-29GW, while solar power capacity will also be increased to 45 – 47GW.

A move towards renewables means that UK domestic energy security is strengthened, with net zero targets being met and customer costs lowering in time. Modern energy extraction and distribution is a

complex process driven by geopolitics and corporate commercial ambition. By expanding renewable

capacity, the UK aims to reduce reliance on outside influences and to cease operating as a net importer of energy. However, the UK approach to energy cultivation and distribution is heavily reliant on external players who do not necessarily have to abide by UK rules and regulations.

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