UK Now World's 2nd Largest Offshore Wind Market

LevelTen Energy has released findings from its report, How PPAs and Asset M&A are Helping the UK Unlock Its Clean Energy Future. The report highlights the UK’s impressive growth in wind energy capacity, which has surged from 1 GW in 2010 to 15 GW in 2024, a significant milestone in the nation’s clean energy transition. As a leading provider of transaction infrastructure for clean energy, LevelTen Energy connects project developers with corporations and investors, facilitating carbon-free energy deals globally and accelerating the shift toward a sustainable future.

Demand for clean energy is rising rapidly as corporate interest and ambitious sustainability targets expand, especially within energy-intensive sectors like manufacturing, retail, and technology. This shift is reflected in the growing number of RFPs issued by clean energy buyers. The wind industry, in particular, has thrived thanks to significant government investment through longstanding Contracts for Difference (CfD) schemes. This momentum is set to accelerate further with the recent lifting of the 'de facto ban' on onshore wind development, opening new pathways for sustainable growth.

Policy developments are essential to sustaining this growth, particularly in overcoming challenges related to the national grid and energy transportation. Modernising these areas would ensure that clean energy is delivered more efficiently, reaching demand centres precisely when and where it's needed. The government is also exploring enhancements to the wholesale electricity market. As part of the Review of Electricity Market Arrangements, discussions have included the possibility of dividing the UK grid into smaller zones to enable localised pricing. A zonal structure could lower prices in regions with high renewable generation, directly benefiting areas adopting clean energy solutions. Though this transition may seem complex, similar models have successfully been implemented in markets like Italy, Sweden, and the United States, demonstrating its viability.

The Global Director of Developer Engagement at LevelTen Energy, Frederico Carita said,

“With a robust and growing pool of PPA buyers looking to procure in pursuit of ambitious decarbonisation goals, the coming years should provide exciting prospects for clean energy players of all kinds.”

Whilst investor confidence is high and people understand that investing in Britain’s clean future is a good financial bet, energy leaders need to take hold of the opportunity and unlock the financial potential.