The UK’s transition to a lower-carbon electricity system will require substantial investment in offshore wind, solar photovoltaic (PV), nuclear power and electricity networks. According to GlobalData, progress will depend on faster grid connections, transmission upgrades and market reforms that support investment while accommodating more variable generation.
GlobalData’s 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 nearly double between 2025 and 2035. Renewables are expected to account for 73% of installed capacity by 2035, led by offshore wind, solar PV and onshore wind.
Electricity demand is expected to increase as transport, heating and industrial processes become more reliant on electricity. Renewable sources are projected to provide around two-thirds of gross electricity generation by 2035. Gas-fired power stations are expected to continue providing flexible generation, while nuclear power will contribute low-carbon electricity. The planned retirement of older nuclear stations before replacement capacity enters service makes the timing of new investment important for security of supply.
Grid capacity remains a major constraint on deployment. Renewable energy projects face connection queues, while new offshore wind farms require additional transmission infrastructure to transport electricity from coastal connection points to centres of demand. The National Energy System Operator, transmission owners and Ofgem are working on changes intended to accelerate network investment and improve the connection process.
The UK also relies on electricity interconnectors with France, the Netherlands, Belgium, Norway, Denmark and Ireland. These links enable electricity to be traded across borders and can help balance variations in renewable generation, although they also require coordinated market arrangements and reliable infrastructure.
Investment towards the end of the decade is expected to focus on offshore wind, nuclear power, solar PV, onshore wind, grid infrastructure and flexibility. Coordinating new generation with network expansion and flexible capacity will be important to delivering the UK’s electricity system plans.
