Andrew King, Founder of SGT
Energy Pricing and Supply Security
Due to geopolitical factors and fluctuations in the global energy
market, energy prices could remain volatile. There’s enough unrest with
the ongoing conflict between Russia & Ukraine and the Middle East to
have potential to drive pricing considerably higher. The UK’s strategy
will likely include hedging against such risks by diversifying energy
sources and encouraging demand-side measures. Consumers may also see a
push for more energy-efficient solutions and smart home technology to
mitigate high costs.
Expansion in Hydrogen
Existing projects, led by National Gas, to ensure Hydrogen plays an
increased role in the energy space, particularly by heavy industry.
There’s significant initiatives in place to repurpose parts of the
nationwide natural gas infrastructure for Hydrogen use. Green hydrogen
(produced from renewable energy sources) is anticipated to become more
prevalent, though blue hydrogen (from natural gas with carbon capture)
might also remain in the mix as the UK scales production capacity and
infrastructure.
Increased Investment in Nuclear
With recent approvals of projects like Hinkley Point C and further
support for small modular reactors (SMRs), the UK is reinforcing its
commitment to nuclear power. By 2025, initial developments on both large
and smaller nuclear projects will likely be underway, serving as a key
pillar in achieving long-term, low-carbon baseload power.
EV and Smart Charging infrastructure
The electric vehicle (EV) market in the UK is expected to grow
significantly, with the 2030 ban on new petrol and diesel cars spurring
demand. By 2025, investments in EV charging infrastructure and smart
charging solutions are expected to accelerate, with a focus on
integrating EVs into the grid as both load and storage assets. It’s
widely accepted that the charging infrastructure isn’t where it needs to
be and in order to meet the required demand, significant investments
must be made, sooner rather than later.
Increased Renewable Energy production
The UK will likely continue to expand its renewable energy
infrastructure, primarily in offshore wind, solar, and battery storage.
Offshore wind, in particular, is set to be a major focus, with a goal of
achieving 50 GW of offshore wind capacity by 2030. This push will help
the UK get closer to net-zero targets and reduce dependency on fossil
fuels.
Advancements in Energy Storage Technologies
With the growth of renewable energy, especially solar and wind, the UK
will likely see further investment in energy storage solutions, such as
lithium-ion and solid-state batteries, as well as pumped hydro storage.
This will help stabilize the grid and allow surplus renewable energy to
be stored and used during periods of high demand.
Long Term
These trends suggest that during 2025, the UK will be slowly progressing
toward its ambitious climate targets, with substantial investments in
clean energy, digital solutions, and energy security. The regulatory
landscape is expected to evolve to support this transition, aligning
with broader European and global sustainability goals.