The UK’s offshore wind expansion and wider clean-power transition will depend on faster grid connections, transmission investment and electricity market reforms, according to GlobalData, as renewable energy and nuclear capacity reshape the country’s power sector.
GlobalData’s latest report, UK Power Market Trends and
Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key
Players and Forecast to 2035, projects that the UK’s installed power capacity
will almost double between 2025 and 2035.
Renewables are expected to account for 73 per cent of the
generation fleet by the end of the period, led by offshore wind, solar
photovoltaic (PV) and onshore wind.
Attaurrahman Ojindaram Saibasan, Power Analyst at
GlobalData, said offshore wind remains central to the country’s clean-power
strategy, supported by North Sea developments, the ScotWind leasing round and
annual Contracts for Difference (CfD) auctions.
“Offshore wind is central to the UK’s clean power strategy.
The project pipeline includes large North Sea developments and the ScotWind
leasing round, while annual Contracts for Difference (CFD) auctions continue to
provide the principal route to market for large-scale renewable projects.
However, project awards alone will not ensure delivery. Developers require
timely connections, supply-chain capacity, and a market framework that reflects
the changing value of power by location and time of day.”
Electricity demand is expected to recover and increase as
transport, heating and industrial processes become increasingly electrified.
Renewable generation is projected to supply roughly
two-thirds of gross electricity output by 2035, while gas-fired plants provide
flexible balancing capacity and nuclear power contributes low-carbon
generation.
However, the retirement of older nuclear stations before
replacement projects become operational could create challenges for energy
security.
Grid capacity remains a major constraint, with renewable
projects facing connection queues and new offshore developments requiring
expanded transmission infrastructure to deliver electricity from coastal
landing points to demand centres.
The National Energy System Operator, transmission owners and
Ofgem are pursuing reforms to accelerate network investment and improve
connections.
Saibasan said: “The UK has a strong foundation for a
high-renewables system: a mature CFD mechanism, deep offshore wind resources,
extensive interconnection, and a competitive retail market. Yet the next stage
of the transition requires the network to become more anticipatory.
Transmission, distribution capacity, storage, demand response, and digital
flexibility must develop alongside generation rather than after it.”
The UK’s electricity interconnectors with France, the
Netherlands, Belgium, Norway, Denmark and Ireland also support supply security
and help balance renewable generation across markets.
Investment through the end of the decade is expected to
target offshore wind, nuclear, solar PV, onshore wind, grid infrastructure and
flexibility technologies.
CfD auctions provide long-term revenue support for renewable
projects, while the Regulated Asset Base model supports financing for new
nuclear developments.
Saibasan concluded: “The UK’s challenge is no longer setting clean-power ambitions; it is converting an extensive development pipeline into operating assets. Success will depend on synchronizing renewable deployment with grid expansion, flexible capacity, and reforms that maintain the investment case for low-carbon generation.” -OGN/TradeArabia News Service

