Renewable electricity generation lower in Q2’21 vs Q2’20
Renewable generation accounted for 32% of the UK power mix during the second quarter of 2021, down from 40% in the same period last year(11).
Despite the lower output, renewable power hit a key milestone this quarter. The UK recorded its greenest ever day over the Easter bank holiday.
The decline in renewable output was due to less favourable weather conditions in 2021, particularly for wind and solar. Wind power decreased by 12% compared to Q2’20, whilst solar power saw a fall of 11%.
In contrast, gas for power generation increased by 45% relative to the first three months of 2020.
Coal, which is scheduled to be removed from the UK’s energy mix from October 2024, increased by four-fold.
These are however probably just temporary hiccups. The UK has a legal obligation to reduce all greenhouse emissions to net zero by 2050. This ambitious and pioneering target will be achieved by energy efficiency measures as well as reducing power generation from fossil fuels.
Interest in green electricity from domestic and business customers is growing. It's estimated that 65% of domestic energy customers are now supplied by green energy suppliers with REGO-backed tariffs(12). On the other hand, a survey found that 62% of energy consumers are more likely to buy sustainable product or services(13).
One important and relatively straight-forward step for businesses to start their journey towards net zero is choosing green energy. So availability of green energy contracts and capacity have become critical issues.
Crucially, the UK seems to be on right path. It's estimated that renewable energy capacity will more than double from 46.7GW in 2020 to 110.5GW by 2030. Late in June, Denmark's energy company Orsted installed its 1,000th offshore wind turbine at the Hornsea Two development off the Yorkshire coast . Once completed, the 165-turbine project will become the world's largest offshore wind farm.
Another survey suggested that 78% of C&I companies have already invested or plan to invest in solar PV.
The UK may have passed the point of no return in its journey towards net zero and energy suppliers will need to adapt quickly to the changing energy landscape.
In fact In 2020, the UK ranked sixth in the world for the share of its electricity it produces from wind and solar power. Denmark was ranked first with 61% of its electricity generated from the two renewable sources, followed by Uruguay on 44%(14). Ireland, Germany and Spain were ranked ahead of the UK, which in 2020 generated 29% of its electricity from wind and solar generators.
Sources & Notes:
(11) UK power generation by fuel type: BMRS Reports Elexon and solar generation from Sheffield Solar
(12) Cornwall Insight chart of the week 3rd June 2021
(13) EY UK energy consumers ready to flick the switch to more sustainable suppliers, 2nd February 2021
(14) Top 15 wind & solar power countries in 2020, EMBER Climate, 8th July 2021
www.ember-climate.org/commentary/2021/07/08/top-15-wind-and-solar-power-countries-in-2020/