The UK Government has heavily supported the renewable energy sector recently. If you would like to start a business in this sector, you definitely need to consult with us and know more about... 


UK energy sector is transforming. There are more low carbon generation, new technologies (storage, renewable energy and electric vehicles for instance) and rapidly falling costs of such transformative energy resources. More electricity is being generated from renewable energy such as wind and solar power, instead of traditional fossil fuel power stations.

Industry Analysis 

With the reference to National Statistics 2018 in UK energy, the energy sector contributed 2.9% to the GDP in 2017, which has slightly increased with comparison to 2016. By creating £83.7 billion in economic activity and deliver £12.6 billion of investment in 2017, the energy sector has demonstrated as a leader in contributing the economic growth. Not only contributing in the GDP, the industry helps creating job opportunities. In 2017, the industry successfully recruited 181,000 people directly which is 6.3% of industrial employment across UK.  In the National Infrastructure Delivery Plan 2016 – 2021, the government promised to allocate at least £50 million in the energy sector for smarty technologies and innovation in energy storage.

The industry faces a lot of challenging through the transformation but it still provides numerous opportunities. Challenges such as seeing new sectors, technologies and flourishing services. Changes that improve the access to these markets for smart businesses will enable them to compete fairly and reduce costs for consumers.

A recent plan published by Ofgem highlighted Government’s industrial strategy, the forthcoming Clean Growth Plan and a core component of Ofgem’s strategy to enable the energy system transition. It is supported by the Government by increasing public research and innovation spending, including on new storage technologies. 

Through signing the Paris Agreement in 2016 on dealing with climate change, it was acknowledged that the urgency to address greenhouse gas emissions and air pollution. The UK energy supply sector, therefore, has to undergo transformation driven by this accord. The amount of power generated by coal-fired plants which supplied less than 7% of UK power in 2017 has substantially decrease due to the Carbon Price Support. This scheme combined with government’s target of phasing out all unabated coal-fired power stations by October 2025, has successfully reduced pollution.

Other than government’s encouragement, CFD (Contracts for Difference) and other organizations have promoted low carbon technologies and invited investors which accounted for 53% of total UK power generation capacity in 2017.

Especially in renewable energy, the sector plays a much important role in the realization of government policies for a reduction in carbon dioxide emissions. In 2017, bioenergy accounted for the highest energy resource, contributing 66%, among all types of renewable energy, followed by wind and solar energy.

Renewable energy has contributed 20.2 million tonnes of oil equivalent energy in 2017 which compares to 27 years ago (1990), there were just 1.01 million tonnes. The renewable energy was for generating electricity, heat and road transport.


Primary Energy Use Accounted For (By Renewable Sources) in 1000 Tonnes 

Particulars 1990 2000 2010 2016 2017
Solar Panels (PV) and Active Solar Heating  6 11 41 946 1,043
Wind 1 81 884 3,204 4,300
Hydro and Wave 448 437 309 463 510
Landfill Gas 80 731 1,725 1,556 1,419
Sewage Gas  138 169 295 384 401
Wood (Both Domestic and Industrial) 174 458 1,653 2,373 2,358
Municipal Gas Combustion Biodegradable  101 375 632 1,187 1,278
Deep Geothermal and Heat Pumps  1 1 23 1,066 1,045
Transport Biofuel  0 0 1,218 1,010 997
Coffering 0 0 625 25 18
Other Bioenergy 72 268 1,054 6,178 6,845
Total 1,021 2,529 8,460 18,392 20,216





The primary concern of UK energy sector is to enable the transition and truly unlock the opportunities it brings. There are some essential tips for starting the business in this sector:


In the long run, the sector is looking to open up of new markets, improved coordination across the system and enable these businesses to realize the true value of their services. Taken together, these measures will reduce the costs of the energy system and keep energy bills as low as possible for consumers. With the emphasis on the value delivered from flexibility and responsiveness, continued disruption in the market place, regulatory hinge, security of supply, enhanced technology development and the possibility of decentralized trading, a force change of traditional funding structures and business models is inevitable.

The rising of renewable energy business certainly attracts a lot of people. However, there are different types of renewable energy business and you may not have a clear vision on what to do and how to work it out. B&F Services provides you business planning and marketing strategies, we are willing to help you be an outstanding company in this field. Do not hesitate to contact us at +44(0) 203 637 6137.

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