Overview
The UK draws its overall energy supply (energy used for electricity generation, transportation, heating etc.) from a diverse mix of fossil fuels, nuclear power, renewables, and interconnectors with nearby countries. According to the International Energy Agency, in 2023 natural gas provided 38% of the UK’s total energy supply (all energy produced in the UK or imported, minus that which is exported or stored), oil provided 36% and renewables/nuclear provided 25%. Coal accounted for 1% but has now been phased out of the UK. The UK imported 44.3% of its total energy supply, with Norway and the United States as the principal sources of UK’s imported energy in 2024.
2024 saw a rise in the UK’s use of renewable energy via a mix of electricity generation sources: 26% gas, 35% wind and solar, 14% nuclear, 16% other renewable, 1% coal and 8% other. In 2024, the UK imported more power than it exported.
The current UK government is working to implement one of its five manifesto pledges to become a “clean energy superpower” and achieve a 95% “clean” power grid by 2030. Currently, the UK energy sector supports over 750,000 jobs and contributes $189 billion to the UK economy. Most energy jobs are concentrated in the regions outside London. Approximately 120,000 jobs are engaged in the UK oil and gas sector, with a large concentration of jobs located in Northeast Scotland.
The UK has taken various steps to achieve its goals, including halting new North Sea oil and gas licenses; loosening nuclear site restrictions; establishing and funding Great British Energy-Nuclear (GBE-N), a publicly owned energy company headquartered in Aberdeen, Scotland focused on clean energy projects; and enabling the National Wealth Fund to invest in projects that will focus on the “production of clean, low carbon energy” by investing $9 billion (£7.3 billion) in ports, gigafactories, clean steel, carbon capture and storage, and green hydrogen.
The UK’s focus on energy security and building a low-carbon economy creates numerous opportunities for U.S. companies to supply products and services that will help achieve its goals. In December 2024, the government released an updated “Powering Up Britain” energy security plan. The clean energy plans target nuclear, offshore wind, and hydrogen power, among other initiatives, including increasing energy efficiency, electric vehicle infrastructure, and carbon capture, utilization, and storage (CCUS).
The UK energy sector presents large and diverse opportunities for U.S. businesses but also some challenges.
The maturity and competitiveness of the UK energy market demand product quality and performance, delivery timescales, and costs, for market acceptance. Investing time and resources in getting to know the key stakeholders and establishing solid relationships is essential for succeeding in the UK energy market. Buyers, including the UK government, value a green supply chain. The lack of a skilled workforce to meet the growing demand in some energy sub-sectors presents opportunities for U.S. businesses to fill talent gaps.
Like the United States, the UK is dealing with aging infrastructure and a constrained grid that has not adapted to the dispersed nature of renewable energy sources (e.g., wind and solar farms). As a result, renewable energy companies have complained about long wait times for a grid inter-connection. Firms must also be prepared for a lengthy and time-consuming planning and consent process for new construction projects from the local through national levels (e.g., nuclear plant, wind farm). The UK government is examining how to reform and streamline the planning process, accelerate transmission upgrades, and improve grid delivery. This creates opportunities for firms who offer solutions to increase energy efficiency, optimize and upgrade the grid.
Leading Sub-Sectors
Nuclear: Strong political support and plans for expansion make the UK a significant opportunity for U.S. civil nuclear exports. New plant construction, decommissioning projects, and advanced reactor development are some of the growing market opportunities. Robust foreign competition and financing are the chief obstacles for U.S. industry.
The United Kingdom has nine civil nuclear reactors currently in operation, with two reactors under construction. All but one of the current operating reactors will reach the end of their life cycle and are scheduled to be shut down by 2030.
In February 2025, the UK government announced planning rule reforms to allow for nuclear power plants to be built anywhere in England and Wales. (Note: In Scotland, the UK government does not have authority over local energy planning. Currently, the Scottish government has a ban on new nuclear development). Previously, only eight sites were approved for new nuclear developments—Bradwell, Hartlepool, Heysham, Hinkley Point, Moorside/Sellafield, Oldbury, Sizewell, and Wylfa—all of which were home to former or current nuclear power plants and thus have been deemed appropriate for nuclear power stations. Under HMG’s new rules, the government will define specific criteria that nuclear developers could use for site selection anywhere in England and Wales. The developers can then submit an application to HMG describing how their selected site meets the specified criteria, which makes the planning for nuclear power more aligned with other forms of power generation.
In June 2025, the UK Labour government announced the results of a two-year SMR competition, with Rolls-Royce SMR chosen as the preferred bidder to build the UK’s first SMRs in partnership with GBE-N and subject to final government approvals.
Renewables: Wind, Solar, Biomass, Tidal, and Waste: The UK’s renewable energy industry has become a central pillar of its energy transition, with the UK’s 14.7 GW of offshore wind operating capacity the largest installed capacity in Europe and ambitious government targets to reach 43-50 GW by 2030. In 2024, wind farms contributed a record 30% of the country’s electricity in 2024. Onshore wind and solar also contribute significantly. Biomass and hydroelectric power make up smaller portions of the mix, while tidal energy remains in early development stages despite the UK’s strong marine resources. The UK aims to develop up to 50GW of offshore wind by 2030 and increase offshore wind capacity five-fold by 2035. Much of the offshore wind capacity is in the North Sea. Scotland alone is targeting 11GW installed offshore wind capacity by 2030. Effective July 2024, the UK lifted a de facto ban on onshore wind. Offshore wind, both fixed and floating, is growing.
Government working groups and taskforces are focused on how to sustain and grow the offshore wind industry and supply chains in the long-term. Government funded demonstration programs, investment and infrastructure, innovation and testing centers provide support in the UK market. The UK public has shown strong approval for offshore wind energy. There are eight regional offshore clusters across the UK that serve as catalysts to promote regional strengths, supply chain capabilities, encourage new sector entrants, and drive innovation and partnerships.
Pricing and Distribution - Smart Grids/Energy Storage: Great Britian currently has some of the highest residential and industrial energy prices in the world, particularly for electricity. The UK needs to expand and upgrade the grid to adapt to increasing supply of renewable energy and ever-increasing demand. Smart grid technology and applications help the UK maximize use of the current system. Thanks to a highly competitive electricity sector and recent efforts by the government and regulators, the UK market offers many prospects. UK public and private organizations are investing in grid upgrades, creating significant business opportunities for U.S. companies that have developed innovative products, services or technologies related to the smart grids ICT segment. Increasing demand, constrained supply, emphasis on energy security and challenging carbon reduction targets driving transformation in energy, utilities and smart grid technologies will play a key role in this space.
During high wind periods, UK wind farms can produce more power than the grid transmission system can handle. In 2024, the National Grid Electricity System Operator (NESO) paid approximately $500 million in constraint payments to wind farms to curtail 8.3 terawatt-hours (TWh) of electricity generation. Battery storage systems help reduce the need for curtailment payments.
As of 2025, the UK has over 6 gigawatts (GW) of operational grid-scale battery energy storage systems (BESS), with an energy capacity exceeding 8 gigawatt-hours (GWh) and 20GW additional capacity approved in planning. The UK is deploying increasing amounts of new utility energy storage capacity each year. The UK’s battery storage project pipeline has expanded to approximately 127 GW, encompassing projects at various stages of development. The planned capacity of storage sites is increasing, with many100 MW and larger.
Opportunities
Nuclear
Existing plant’s life extension & New Build: Existing nuclear plants are all owned and operated by EDF Energy, a wholly owned subsidiary of the EDF Group (headquartered in France), one of Europe’s largest energy groups. EDF has committed to investing an additional $1.6 billion in its operational UK nuclear fleet over the next three years (2025–2027) to maintain current output levels and enhance energy security. This investment averages approximately $550 million per year during this period. EDF Energy is building two Areva (France) European Pressurized Reactors (EPRs) at Hinkley Point C in Somerset and Sizewell C in Suffolk. Construction at Hinkley Point started in 2018, and EDF plans to connect the first of these new reactors to the grid by 2029. Sizewell C is a 50-50 joint venture between HMG and EDF. It will follow the same design as Hinkley Point once construction begins. Sizewell C is the first nuclear project eligible for the Regulated Asset Base (RAB) funding model under which consumers pay levies on their energy bills before the plant generates electricity. Major U.S. engineering companies (Bechtel, Amentum, GE through Alstom acquisition) are involved in the project, even though their scope is limited.
In February 2025, the UK government announced a major policy shift to free up additional sites for Small Modular Reactor (SMR) development, reinforcing its commitment to nuclear energy as part of its Net Zero by 2050 strategy. Previously, nuclear power projects were limited to eight specific sites identified in the National Policy Statement (NPS) for Nuclear Power Generation (EN-6). This policy change will open opportunities for U.S. SMR and AMR technology and service to expand into the UK.
Decommissioning: The Nuclear Decommissioning Authority (NDA) owns 17 nuclear sites across the UK and is responsible for delivering the decommissioning and clean-up of the UK’s civil nuclear legacy. NDA will also be responsible for decommissioning the UK’s seven advanced gas-cooled reactor (AGR) stations. This will be achieved through the introduction of innovation and contractor expertise via a series of competitive procurements.
For the supply chain, decommissioning is a significant market: the United Kingdom plans to shut down eight reactors by 2030 and currently plans to spend approximately $5.5 billion in 2024-2025 on decommissioning programs. All major U.S. engineering companies are involved (including Bechtel, Amentum, AECOM, Fluor). New opportunities continue to open as efforts expand to additional sites.
Wind
Hornsea One, located off the Yorkshire coast, was the world’s largest operational offshore wind farm upon its completion in 2020, with a capacity of 1.2 GW. It comprises 174 Siemens Gamesa turbines, each with a capacity of 7 MW. Subsequently, Hornsea Two became operational in August 2022, surpassing its predecessor with a capacity of 1.4 GW, featuring 165 turbines Seagreen Wind Farm is Scotland’s largest offshore fixed wind farm was completed in June 2023 and has an installed capacity of 1,075MW. Dogger Bank A, B, and C (and potentially D) is a series of wind farms off the northeast coast of England. When the three phases are completed in 2026, Dogger Bank will be the world’s largest wind farm and will have an installed generation capacity of 3.6GW to meet 5% of total UK demand.
The Crown Estate studies prospective locations, engaging stakeholders before selection, giving industry an opportunity to provide input. The Estate then holds leasing rounds for new offshore wind project tenders. The continued build-out of new offshore wind farms present opportunities for U.S. manufacturers and service providers from design and planning though construction and installation. Once installed, operations and maintenance (O&M) service providers are needed. The maturity of the UK’s offshore wind market also provides an opportunity for U.S. companies to work with experienced companies and build relationships and expertise. Working through the various UK offshore wind regional clusters can facilitate collaboration opportunities.
Smart Grids
The development of the UK smart grid is creating opportunities for traditional energy infrastructure vendors while opening the market to new players. Traditional vendors will benefit from large-scale renewal of utility assets as customer and grid applications are deployed and will be able to differentiate their product lines through increased functionality and integration with other smart technologies. New players – IT providers, networking and telecommunications companies, and systems integrators – will benefit from major technology investments.
Target sectors holding high potential for U.S exporters include:
- Smart meters and advanced metering infrastructure
- Communication and data management software
- Grid optimization and automation technologies
- Demand response and control systems
- Energy management for distributed generation and storage
- Cyber security software and services
- Consumer engagement platforms and services
Purchasers of U.S. smart grid goods and services include generation, transmission, and distribution companies. The UK gas and electricity market is unbundled (non-vertically integrated), and the major stakeholders involved in the implementation of smart grids include the following suppliers:
British Gas, E.ON, OVO Energy, EdF Energy, Octopus Energy and Scottish Power (these six organizations are known as the “Big 6” and control the majority of the energy retail market).
Transmission networks operators: National Grid Electricity Transmission (NGET) (Owns and maintains the high-voltage electricity transmission network in England and Wales), Scottish Power Transmission (Manages the transmission network in southern and central Scotland), Scottish Hydro Electric Transmission (Responsible for the transmission network in northern Scotland), Northern Ireland Electricity (NIE) (Oversees the transmission and distribution networks in Northern Ireland)
Gas Transmission and Distribution: National Gas Transmission (formerly part of National Grid) (Manages the national gas transmission system across Great Britain), Cadent Gas (Operates four of the eight regional gas distribution networks in the UK)
Distribution networks operators: Electricity North West, Northern PowerGrid, SP Energy Networks, SSE Power Distribution, UK Power Networks, National Grid Electricity Distribution (formerly Western Power Distribution) and Northern Ireland Electricity
Recent Updates: National Energy System Operator (NESO): Established as an independent public body in October 2024, NESO oversees both electricity and gas systems in the UK, enhancing energy security and supporting clean energy initiatives.
The Energy Networks Association Smart Networks Portal lists the various UK smart grid projects and is a good resource to find information about the major players (potential buyers and partners for U.S. companies) involved in this space.
Energy Storage
Energy storage is a high priority for the UK government and a key component of its push towards a net zero carbon economy.
The UK has the largest installed capacity of offshore wind in the world; however, because the availability and speed of wind is not constant, energy can sometimes be produced when it is not needed and then lost. Batteries and other energy storage methods are vital for maintaining consistent supply from renewable sources, which naturally fluctuate over hours, days, and weeks. They help grid operators balance the supply of electricity to meet demand, and provide extra resources when needed, such as for frequency response.
Major developers of UK energy storage projects include Anesco, EDF, Pivot Power, Statera, RES and Zenobe, with each company active in several power supply and flexibility markets, providing services to National Grid and Distribution Network Operators (DNOs), as well as operating in the wholesale energy markets.
Resources
Industry Events:
- International Energy Week 2026, February 10-12, 2026, London
- Smart Energy Conference (RenewableNI), March 26, 2026, Belfast Northern Ireland
- Global Offshore Wind 2026, June 16, 2026, Manchester Central
- World Nuclear Symposium, September 9-11, 2026, London
Trade Associations:
Government Departments:
Department of Energy Security and Net Zero
Nuclear Decommissioning Authority
North Sea Transition Authority
For further information, please contact:
Leah Kollhoff, Commercial Specialist, U.S. Commercial Service, Tel: +44 (0)20 7891 3459