The UK stands at a pivotal juncture in its industrial evolution, with the government’s Industrial Strategy accelerating the transition from fossil fuels to homegrown clean energy.
This transition aims to decarbonise the power sector by 2030, redefining industrial energy consumption and presenting both challenges and opportunities.
“Historically the UK’s manufacturing energy consumption has decreased steadily, even when compared with similar economies like Germany and France,” says David Hall, VP power systems UK & Ireland at Schneider Electric.
“Looking broader, 2024 saw the phasing out of coal, alongside just 29% of the UK’s electricity generation being produced by fossil fuels (www.tinyurl.com/4dsv9sb8), the lowest level on record.
“Renewables in the UK also reached a record high, producing 45% of the nation’s electricity. While these statistics make for positive reading, it’s important we continue to support the transition from fossil fuels in energy-intensive industrial sectors. Not only will this support net zero targets, but it will also drive the UK’s competitiveness.”
CLEAN POWER
In December 2024, the UK government launched the Clean Power Action Plan, outlining a strategy to achieve a predominantly clean electricity system by 2030.
The plan focuses on energy security and cost reduction by integrating renewables such as wind, solar, nuclear, and biomass, alongside carbon capture and storage (CCS). The goal is to cut electricity generation carbon intensity from 171gCO₂/kWh in 2023 to below 50gCO₂/kWh by 2030.
Energy Secretary Ed Miliband said: “A new era of clean electricity for our country offers a positive vision of Britain’s future with energy security, lower bills, good jobs, and climate action. The era of clean electricity is about harnessing the power of Britain’s natural resources so we can protect working people from the ravages of global energy markets.”
A major reform involves changing the grid connection process, prioritising projects based on readiness instead of the traditional ‘first-come, first-served’ approach. This is expected to speed up renewable energy integration and unlock £40 billion annually in mostly private investments, creating skilled jobs nationwide.
Key measures include:
Grid optimisation – Addressing inefficiencies by prioritising critical projects. Expedited planning processes – Enabling faster approvals for energy infrastructure. Enhanced renewable auctions – Expanding auctions to reduce delays and integrate more clean energy.
FUTURE ENERGY
The National Energy System Operator (NESO) has developed Future Energy Scenarios (FES) to guide the UK’s path to net-zero emissions. These explore various pathways, including greater renewables deployment, energy storage advancements, and hydrogen and CCS adoption.
Claire Dykta, director of strategy & policy, NESO, says: “We have set a target to be able to operate a net zero carbon electricity system for short durations by next year, which sets us up to be able to operate a clean power system throughout the year in the 2030s.”
Similarly, National Grid Electricity Distribution (NGED) has published Distribution Future Energy Scenarios, forecasting renewable capacity integration into the distribution network up to 2050 to support planning for low-carbon technologies.
IMPLICATIONS FOR INDUSTRY
For UK industries, the transition to clean energy means re-evaluating current energy consumption patterns and adopting innovative technologies. Operations engineers and plant managers will be key in implementing energy efficiency measures, integrating on-site renewables, and optimising processes to cut emissions.
The government’s investments in renewable energy infrastructure present opportunities for industries to contribute to the clean energy supply chain, whether by manufacturing components or providing maintenance services.
“Industrial businesses, especially in energy-intensive applications like chemicals, approach energy usage very differently from consumers,” Hall explains. “Price volatility can have drastic implications on whether industrial businesses switch to renewable energy contracts or on choosing the optimum site for a new facility.
“Investment into renewables will support energy security and a clean energy future and can include on-site generation and storage systems to deliver resilience and cost saving for industrial applications.”
CHALLENGES
Despite progress, several challenges remain. Supply chain constraints, particularly for critical components like transformers, could delay renewable energy deployment. The development of small modular reactors (SMRs) is also being explored to provide reliable low-carbon electricity, but concerns around safety, waste management, and public acceptance persist.
Carbon capture and storage (CCS) is vital for decarbonising hard-to-electrify industries such as cement and steel, but its high costs and funding uncertainties remain hurdles.
“Decarbonisation of the energy system is the challenge of our generation,” Dykta adds: “In recognition of the expansive industry transformation required to Great Britain’s energy network planning, this year’s FES framework has evolved from ‘scenarios’ to ‘pathways’ to explore narrower ranges and strategic, credible choices to propel us on the route to decarbonisation.”
WORKFORCE DEVELOPMENT
The transition to a clean energy system is expected to generate substantial employment opportunities, with the Climate Change Committee estimating between 135,000 and 725,000 new jobs. However, training enough new staff to meet demand could be challenging.
To address this, the government has introduced the Energy Skills Passport, helping workers transition from oil and gas to renewables. Operations engineers and facilities managers should consider upskilling to align with the evolving industry landscape.
RenewableUK’s executive director of offshore wind Jane Cooper says: “To grow our world-class offshore wind industry as fast as possible, we need the valuable experience that British oil and gas workers can bring to our sector.
“The Energy Skills Passport provides a pathway for them into clean energy by identifying which offshore wind roles which would suit them best and setting out the training they will need to secure these new job opportunities.”
EMBRACE THE OPPORTUNITY
The UK’s commitment to clean energy presents a transformative opportunity for the industrial sector. By embracing renewables, improving efficiency, and investing in innovative technologies, industries can contribute to national decarbonisation goals while enhancing competitiveness.
According to Hall, the government has recently launched a major renewables auction, bringing forward 131 clean energy projects, removing barriers to onshore wind farms, and approving nearly two gigawatts of new solar. Each of these activities aims to support advanced manufacturing which, as a sector, cited electricity costs as a key barrier to growth.
“Breaking down the wide-reaching barriers of electricity costs enables manufacturers to explore renewables, and this is where we come in as Schneider Electric,” Hall says. “For the government strategy to ring true for manufacturers, many barriers must be removed, and this requires connected, digital solutions.
“In practice, manufacturers can use automation to make renewables a reliable energy source for their own processes and contribute to grid stability. There has never been a better time for manufacturers to explore onsite renewables, leveraging the same flow of real time data used to optimise processes and ensure reliability.
“While government strategies provide a strong direction, solutions providers and end users themselves can only explore sustainability-driven activities if they provide a strong return on investment.”