Decoding the UK energy mix: What keeps your small business running?

In 2025, renewables generated a record amount of electricity in Great Britain, with wind, solar, hydro and biomass together producing more than 127 terawatt hours (TWh) of power and supplying around 44% of the country’s electricity.

This meant that, for the second year running, renewables delivered more than half of the UK’s electricity in 2024, before setting new generation records again in 2025 as more wind farms and solar panels came online.

In this guide, we cover everything you need to know about our nation’s energy mix - including the energy sources we use, the benefits, and how this helps towards our sustainability targets.

We will also look at what the UK energy mix means for business energy prices, energy security and the choices small businesses can make about green tariffs and on‑site generation.

Five-point summary of our guide to the UK's energy mix

1. The UK energy mix is made up of gas, renewables (wind, solar, hydro, biomass), nuclear, a small amount of coal and imported energy, and this balance shifts daily based on demand and weather.
2. Gas still plays a major role in UK electricity generation and heating, which means wholesale gas prices have a big influence on both household and business energy bills.
3. Renewables such as wind and solar now supply a growing share of UK electricity, helping to cut carbon emissions and reduce reliance on coal and imported fossil fuels.
4. A diverse energy mix improves energy security and price stability for UK businesses by spreading risk across different fuels, technologies and countries.
5. Understanding the UK’s energy mix can help SMEs make better decisions about fixing contracts, switching to green tariffs and investing in on‑site generation to support net zero goals.

What is the energy mix?

The ‘energy mix’ refers to all the different energy sources used to power a country. The ‘mix’ can consist of various energy sources, both renewable and non-renewable, like coal, gas, wind, hydro and solar. The mix of energy sources is used to power everything, including both gas and electricity for homes and businesses across the country. 

Think of it like a recipe. The proportions change constantly depending on weather conditions, demand, and what's generating at any given moment. On a blustery winter night, wind might supply over 50% of the grid. On a calm summer afternoon, solar might take the lead. Gas turbines fire up to fill any gaps.

Why does the mix vary between countries?

• Each country has its own natural resources. The UK's exposed Atlantic coastline makes it one of the world's best locations for wind power.
• Energy demand shifts with the seasons. We use more gas in winter to heat homes and businesses.
• Government policies and investment decisions shape what gets built and when.
• Some countries import energy to balance supply with demand.

When people talk about the UK energy mix, they usually mean the fuels used to generate electricity. Still, the wider mix also includes how we heat buildings, power transport and run industry.

What is the UK’s energy mix in 2025?

The UK's energy mix is dynamic. It shifts daily, even hourly. But looking at annual data gives us a clear picture of the big trends. The headline figures for 2024 and into 2025 saw a huge shift towards renewable energy.

In 2024, renewables generated a record 50.8% of UK electricity. This was the first time renewables have exceeded half of all electricity production. Wind alone supplied nearly 30% of the total.

In 2025, renewables in Great Britain produced a record 127 terawatt hours (TWh) of electricity, accounting for around 44% of the total generation mix. While this is a lower percentage than the previous year, it still represents the highest total volume of renewable electricity ever recorded. 

Here's how the current mix breaks down by source:

The energy sources that power the UK

Let's take a closer look at each energy source — what it is, where it comes from, and what role it plays for UK businesses.

Wind - the UK's number one energy source

Wind power is now the UK's single largest source of electricity. In 2024, wind generated a record 29.5% of all UK electricity - more than any other source. On 5 December 2025, British wind farms set a new generation record, averaging 23.94 GW in a single half-hour period. That's enough to power tens of millions of homes.

The UK has one of the best wind resources in the world, thanks to its position in the north-east Atlantic, and we've built one of the world's largest offshore wind industries to take advantage of it.

We have two types of wind farms:

• Onshore wind farms are built on land. They supplied 12.3% of UK electricity in 2024 (35.1 TWh) and have been given a significant boost after the government lifted the de facto ban on new onshore wind in England and launched a dedicated onshore wind strategy in 2025.
• Offshore wind farms are built at sea, where winds are stronger and more consistent. They supplied 17.2% of UK electricity in 2024 (48.9 TWh) and are expanding fast. The UK already has over 30 GW of offshore wind installed or contracted, with a target of 43–50 GW by 2030.

We have around 11,596 wind turbines in the UK, producing around 12.7 gigawatts of electricity. One gigawatt is the same as one billion watts, and an average lightbulb uses around 60-100 watts. Wind turbines are one of the cheapest and fastest ways we can generate renewable energy. That's why it's an important part of our nation’s energy mix.

New offshore projects like Dogger Bank (set to be the world's largest offshore wind farm) will continue to grow wind's share of our energy mix.

Gas - still essential, but shrinking

Natural gas is a fossil fuel formed from decomposing organic matter over millions of years. It's extracted from underground reserves, transported through pipelines, and burned in power stations to generate electricity and heat. Although it’s natural, it’s not an endless source of fuel, and it will eventually run out.

Renewable natural gas (RNS) does exist, but it’s in short supply and not widely available yet. This gas is generated from landfills, food waste and the general waste we produce daily. Find out more about renewable natural gas here. 

This makes it a non-renewable source of energy, so we must balance our nation's energy mix with renewable sources too. 

We still rely heavily on gas, and to spread the risk of low supply (when wind generation is low, for example), and import around 50% of our gas supply from other European countries. This is used to power both domestic and business use. 

Learn all about the UK’s supply of business gas with our guide.

Gas supplied around 26–30% of UK electricity in 2024 and into 2025. That might seem high given our renewables growth — but gas plays a critical role as a 'dispatchable' fuel. Unlike wind or solar, gas plants can be switched on within minutes when electricity demand spikes or renewable output drops. Until we have enough battery storage and other flexible technologies, gas remains the grid's safety net.

The government's Clean Power 2030 Action Plan plans to keep the existing gas fleet running as backup capacity. The aim is to reduce gas generation to no more than 5% of electricity by 2030, which is a dramatic reduction from today's levels.

One of the downsides of natural gas is the process of getting it out of the earth. Fracking causes environmental damage, as water waste and air pollution from toxic gases are pumped into the earth’s atmosphere. Fracking has been banned in the UK since October 2022.

Nuclear - a low-carbon backbone

Nuclear power provides reliable, low-carbon electricity 24 hours a day, regardless of weather conditions. It contributes around 15% of UK electricity. This makes it a vital 'baseload' source that keeps the lights on when wind and solar aren't as productive.

Nuclear power plants are expensive to build, tricky to operate, and they produce toxic waste. This raises some concerns over where to store the waste long-term, as leakage could be fatal for people and the environment. 

And the UK's nuclear power stations are ageing. Several have had their operational lives extended to help bridge the gap until new capacity comes online. The last two Advanced Gas-cooled Reactor (AGR) stations, at Heysham 2 and Torness, are expected to continue operating until at least 2030.

But harnessing nuclear power could be key to reducing our carbon footprint and hitting net zero, and nuclear's future in the UK is looking more positive than it has for decades:

• Hinkley Point C, in Somerset, is under construction and will be the UK's first new nuclear power station in a generation. When complete, it will generate enough electricity to power around 6 million homes. Unit 1 is projected to come online around 2030.
• Sizewell C, in Suffolk, reached a historic Final Investment Decision in July 2025. With the UK government taking a 44.9% stake and private investors, including EDF and Centrica, on board, it has secured over £14 billion in public funding. It's expected to cost around £38 billion in total. It will also be capable of powering around 6 million homes for at least 60 years.
• Small Modular Reactors (SMRs) are a newer technology offering smaller, faster-to-build nuclear plants. The government is actively backing SMR development, with Rolls-Royce among the front-runners for UK deployment.

The Regulated Asset Base (RAB) funding model means homes and businesses will fund part of the cost to build power plants, like the Sizewell C reactor. Once operational, it's projected to save the electricity system £2 billion a year. You can find out more about the RAB nuclear levy in this Bionic guide.

Biomass - the quiet workhorse

Biomass is fuel generated from natural, organic materials, including wood, crops, agricultural waste, and animal matter. When managed sustainably, biomass can be close to carbon-neutral because the carbon released when burning it is broadly offset by the carbon absorbed during the growth of the original material.

In the UK, biomass is used mainly to generate electricity at dedicated power stations. The Drax Power Station in Yorkshire, for example, has converted several of its units from coal to biomass, burning wood pellets (largely imported from the USA and Canada) to produce electricity.

Biomass contributed around 7% of UK electricity in 2024. Unlike wind and solar, it generates electricity on demand, regardless of the weather. It's a stable, renewable source, which is why it remains an important part of the mix.

But biomass sustainability is a contested area. Biomass electricity generation is an eligible source for claiming Renewable Energy Guarantees of Origin (REGO) certificates in the UK. Some environmental groups question whether burning imported wood pellets is truly carbon neutral when transport emissions and forest management practices are factored in. 

Solar - growing fast, even in Britain

Although the UK isn’t known for its sunny weather, it can generate a lot of energy through solar panels for both homes and businesses. 

That's why solar energy has become a meaningful and growing part of our energy mix. Solar generated about 6% of UK electricity in 2025. An increase from previous years, as both large-scale solar farms and rooftop installations have expanded rapidly.

For businesses, solar is particularly interesting. Installing solar panels on your premises can:

• Reduce your electricity bills by generating your own power.
• Allow you to sell surplus electricity back to the grid through the Smart Export Guarantee (SEG).
• Strengthen your sustainability credentials with customers and suppliers.
• Provide some protection against volatile wholesale energy prices.

The government's Clean Power 2030 target includes 45 to 47 GW of solar capacity. This is more than double the current levels, so expect continued rapid expansion over the rest of this decade.

Modern solar panels are highly efficient even on overcast days, and the UK gets enough hours of sun to make solar viable across most of the country. Solar generation peaks in summer and during the middle of the day, which complements wind power (stronger in winter and at night).

Even on cloudy days, modern solar panels are good at harnessing power from the sun. And we have vast amounts of it, so it makes sense that this renewable energy source takes up a chunk of our country's energy mix.

Read our full guide to solar power for business. 

Hydro - steady, if small generation

Hydroelectric power has been part of the UK's energy mix since the 1950s and 60s, when many hydro plants were built, mostly in Scotland and Wales. Today, hydro contributes around 1.6% of UK electricity, which is a small but steady contribution.

But what is hydro, and how does it work? 

Hydro or (hydroelectric) power is the energy generated from flowing water. Either from natural or man-made rivers or streams. It works by water flowing from a high-level reservoir down through a tunnel and into a dam. Under the water, turbines take the kinetic energy from water movement and convert it into electrical energy.

It's clean, reliable, and can be switched on quickly to respond to demand. This makes it useful for grid balancing.

The UK government estimates hydro could eventually contribute up to 1-2% of the nation's energy supply, but growth is limited by geography, and it does have a few environmental drawbacks:

• It takes up space in mountains and hilly areas, and these are often protected reserves that can’t be tampered with. This means building new hydro plants is tricky.
• Dams can damage natural areas, impacting the environment. This includes flooding, destroying natural animal habitats. 
• Dams block the natural flow of water, which can impact the natural migration of fish in our rivers.

That said, micro-hydro installations, small systems running on natural streams, are increasingly popular for rural businesses and farms looking to generate their own power.

Imports — spreading the risk

The UK imports some electricity from neighbouring European countries via a network of undersea cables called interconnectors. In 2024, imports accounted for around 14% of UK electricity, sourced from France, Norway, Belgium, the Netherlands, and Denmark.

Energy is imported to help spread the risk. If UK generation falls short, due to low wind speeds, plant outages, or unexpected demand, we can draw on supplies from across the Channel and North Sea. We can also export surplus electricity when we're generating more than we need, helping to keep prices stable.

Norway is particularly important, supplying interconnector capacity backed by its vast hydroelectric system. France contributes nuclear-powered electricity. The UK is part of a shared European energy system, and while Brexit complicated some arrangements, the physical interconnectors remain in place.

Coal - a chapter now closed

Coal was the fuel that powered the Industrial Revolution and lit the first electric grid in 1882. For over 140 years, it was central to UK electricity generation. Between 1882 and 2024, the UK burned an estimated 4.6 billion tonnes of coal and emitted 10.6 billion tonnes of CO₂ from power generation. 

But the last coal-fired power station in Great Britain, Ratcliffe-on-Soar in Nottinghamshire, closed on September 30, 2024.

The UK is now coal-free for electricity generation. Coal's share fell to 0.0% in 2025,  from over 30% as recently as 2012. This is one of the most remarkable energy transitions of any major economy, and it's helped the UK cut its power sector carbon emissions dramatically.

Energy storage - the missing piece of the puzzle

It’s important to have gas stored away to avoid any massive shortages so homes and businesses don’t go without power.  It’s also key if we have a bad year for weather and don’t generate enough wind or solar energy as planned.  

Energy storage is so vital that the UK government are funding new storage technologies with £32.9 million. The aim is to find new ways to store renewable energy so we can rely less on fossil fuel storage. 

If there's one technology that will define the UK's energy future over the next decade, it's battery energy storage. As we generate more electricity from weather-dependent renewables, we need a way to store surplus power and release it when the sun isn't shining and the wind isn't blowing.

Battery Energy Storage Systems (BESS) do exactly that. Large-scale lithium-ion battery installations, often the size of shipping containers, arranged in fields near substations, charge up when electricity is cheap and abundant. They then discharge when demand is high or supply falls short.

The UK's grid-scale battery storage market is growing at speed:

• As of early 2025, the UK has between 6.7 and 7.8 GW of operational grid-scale battery energy storage system (BESS) capacity, providing roughly 9.8 to 11.7 GWh of energy storage.
• Around 6.5 GW of new capacity is currently under construction.
• The government's Clean Power 2030 Action Plan targets 23 to 27 GW of battery storage capacity by 2030.
• The UK's National Wealth Fund has joined private investors in a £500 million platform to accelerate battery storage deployment.

For businesses, the rise of battery storage is good news. It will help smooth out price volatility, improve grid stability, and make the overall system more resilient. Some larger businesses are also installing on-site battery storage to store cheap overnight electricity or solar power for use during peak hours.

The UK's Clean Power 2030 Action Plan

Published in December 2024, the Clean Power 2030 Action Plan is a UK government strategy that aims to have at least 95% of Great Britain's electricity generated from low-carbon sources by 2030.

The plan is built around a massive expansion of renewable capacity, backed up by nuclear and flexible storage:

• 43 to 50 GW of offshore wind (up from around 15 GW today)
• 27 to 29 GW of onshore wind
• 45 to 47 GW of solar power
• 23 to 27 GW of battery energy storage
• Continued nuclear operation, with Hinkley Point C and Sizewell C in the pipeline

The plan also commits to keeping the existing gas fleet in place as backup capacity, but radically reducing how often those plants actually run. By 2030, unabated gas should make up no more than 5% of electricity generation.

As of early 2026, the UK has 63.7% of electricity from clean sources. The 2030 target is 95%. Significant investment and accelerated deployment are needed, but things are moving in the right direction.

For small businesses, Clean Power 2030 matters because a cleaner grid means:

• Lower Scope 2 carbon emissions from your electricity use — important for sustainability reporting.
• More price stability as the UK reduces its dependence on volatile global gas markets.
• Greater availability of renewable energy tariffs and green energy certificates.
• Potential new opportunities in areas like EV charging, heat pumps, and on-site generation.

What are the benefits of having a diverse energy mix?

There are several reasons why having a broad energy mix is important for the UK and your business, including:

• Energy security - More diverse energy sources mean the risk is spread. Thinks of it as an investment portfolio, where investments are made in different sectors and countries. This means that if one area doesn’t do well, investors have another to fall back on.
• More power for more things - Energy sources are not the same and can’t all be used to power the same thing. For example, biomass can’t power electric cars. So we need different types of energy in the mix to power different means.
• Less dependence on fossil fuels - We need to move away from fossil fuels because they're damaging to the environment, and prices can be volatile and are affected by geopolitical events. This can make the market unpredictable, and both domestic and business customers will pay the price. Using more renewable energy provides more stable pricing in the long term.
• Environmental sustainability - It’s not ideal to be relying on fossil fuels because they harm the environment. Using more renewable energy means we won’t be contributing to global warming, and we can focus on reducing carbon emissions where possible.

Does the UK rely too heavily on energy imports?

It’s debatable. We must rely on imports as part of our energy mix for the reasons mentioned above. The main risk with energy imports is that geopolitical or economic issues can arise to disrupt the flow of imports. This risk is lessened as we import from multiple countries. We also still produce a lot of our own renewable energy, which evens out the mix.

Can the UK reach net zero by 2050?

The UK's net zero target, reducing greenhouse gas emissions to net zero by 2050, is legally binding under the Climate Change Act 2008. The electricity sector is central to achieving it, because decarbonising power is necessary for electrifying heating, transport, and industry.

The good news is that the power sector is already transforming faster than almost anyone predicted. The closure of coal, the renewables milestone of 50% of electricity, and the nuclear investment pipeline all point in the right direction.

The challenging news is that we are not yet on track. The Climate Change Committee (CCC) has repeatedly noted that faster action is needed to reach our net-zero target, particularly in areas like heat pump deployment, electric vehicle infrastructure, and industrial decarbonisation.

Clean Power 2030 is a critical stepping stone. If the UK can genuinely achieve 95% clean electricity by 2030, it unlocks the ability to decarbonise large parts of the economy by electrification, making net zero by 2050 achievable.

What is the impact of renewable energy on UK businesses?

Using renewable energy for business has its benefits. These include:

• Exemption from some green taxes - Including the Climate Change Levy (CCL), which is a tax on the energy used by some businesses. 
• A more reliable energy supply – We will eventually run out of fossil fuels, and we still rely heavily on importing them.  It’s a safer bet for small businesses to invest in renewables so you have a steady supply of renewable energy - as it won’t run out.
• Stable energy costs – Renewable energy costs don’t rise and fall as sharply as fossil-fueled energy. So, renewable energy sources have more price stability.
• Stronger brand credentials – Customers like dealing with businesses that are ‘green’. If you are using renewable energy and other green practices across your business, you can promote this. Just be aware of greenwashing, you don’t want to deceive your customers.
• Foundation for the future - as we increase our usage of renewables, more government targets and legislation will come in. Switching to renewables might mean your business is ahead of the game and gives you a head start.

What about North Sea oil and gas?

While the UK is rapidly building out renewables, North Sea oil and gas continue to play an important role in energy security and the economy. Though their share of the mix is in long-term decline.

UK oil and gas production both fell to their lowest levels of the 21st century in 2024. The government is managing a just transition for the oil and gas workforce, investing in skills retraining and supporting coastal communities that depend on the sector.

The North Sea Transition Deal remains in place, aiming to harness the skills and infrastructure of the oil and gas industry to support the move to net zero — including in offshore wind construction and carbon capture. However, the government has signalled a tightening of new oil and gas licences in the North Sea, consistent with its Clean Power 2030 ambitions.

What is the UK’s Energy Security Strategy?

The UK government's energy security strategy — developed in the aftermath of the global energy crisis following Russia's invasion of Ukraine — sets out a framework to make the UK more self-sufficient in energy and less exposed to global price volatility. Key pillars include:

• Rapid expansion of offshore and onshore wind, solar, and other renewables through the Contracts for Difference (CfD) auction scheme.
• Major new nuclear investment, including Hinkley Point C and Sizewell C.
• A target to reduce reliance on unabated gas to no more than 5% of electricity generation by 2030.
• Development of carbon capture, utilisation and storage (CCUS) technology to allow gas to continue generating with near-zero emissions beyond 2030.
• Investment in hydrogen as a future fuel for industry and potentially power generation.
• Expansion of grid infrastructure — the National Grid is estimated to require around £58 billion of investment to support 50 GW of offshore wind by 2030.
• Reformed planning processes to consent new renewable energy projects faster — down from four years to as little as one for offshore wind.

How Bionic can help with your business energy 

The energy-savvy team at Bionic can compare business gas and business electricity deals that could beat your supplier’s out-of-contract rates. We also offer renewable options.

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Frequently asked questions about the UK energy mix

Got more questions about the UK's energy mix? See if they're answered below.

What percentage of UK electricity comes from renewables in 2025?

Around half of UK electricity now comes from renewables, with wind alone providing close to 30% of generation.

Has the UK stopped using coal for electricity?

Great Britain has stopped using coal for electricity, after the last coal power station, Ratcliffe-on-Soar, closed in September 2024.

What is the UK's Clean Power 2030 target?

The UK’s Clean Power 2030 target is for at least 95% of Great Britain’s electricity to come from low‑carbon sources, with grid carbon intensity below 50g CO₂ per kWh by 2030.

What is the difference between offshore and onshore wind in the UK?

Onshore wind farms are built on land, and offshore wind farms at sea, with offshore wind generally more productive and already supplying a larger share of UK electricity than onshore.

Why does the UK still use gas for electricity if renewables are growing?

The UK still uses gas for electricity because gas plants can quickly fill gaps when wind and solar output drop, acting as a flexible backup until storage and other low‑carbon options are scaled up.

What is battery energy storage, and why does it matter for the UK energy mix?

Battery energy storage lets the UK store surplus renewable electricity and release it when needed, helping balance the grid and making a high-renewables energy mix more reliable.

What does Sizewell C mean for UK businesses and energy bills?

Sizewell C is a planned nuclear plant that will add long-term low‑carbon electricity but slightly increase bills during construction before helping reduce system costs once it is running.

How does the UK energy mix affect business energy prices?

The UK energy mix affects business energy prices because reliance on gas exposes firms to volatile global fuel markets, while more renewables and nuclear power should make electricity prices more stable over time.