The UK leading the shift to a clean energy economy
Between 2021 and 2022, consumption (including non-energy use) decreased by 1.2 mtoe (0.9 per cent) to 132.6 mtoe, which was driven by decreases in all sectors except transport (source: the Department for Energy Security and Net Zero).
In 2022, bioenergy accounted for about 63% of renewable energy sources used, with most of the remainder coming from wind (26%), heat pumps and solar (4.4% each). Of the 26.6 million tonnes of oil equivalent of primary energy use accounted for by renewables, 19.1 million tonnes were used to generate electricity, 4.6 million tonnes were used to generate heat, and 2.4 million tonnes were used for transport. Renewable energy use grew by 4.7% between 2021 and 2022 and has increased more than nine-fold on the 2000 total (source: www.gov.uk)
The Government is committed to making the UK a clean energy superpower and has an ambition to radically increase deployment of onshore wind, solar and offshore wind by 2030.
Offshore wind is a success story for the UK. The UK is one of the world’s largest markets for offshore wind, with more than 10GW of cumulative installed capacity across 38 sites. There is a further 5GW in pre-construction, and there are plans for a further 11GW. The UK continues to drive investment and innovation in its thriving offshore wind sector through ambitious targets and the deployment of new technologies.
Swedish technology providers within renewables and cleantech solutions are renowned globally for their know-how and product development. With broad expertise, specifically in district heating, waste management, energy efficiency and storage, as well as sustainable construction, the UK market ought to provide Swedish companies with interesting opportunities
England's cumulative installed capacity of wind power totalled 14.13 gigawatts in 2023. This represents a small increase from the previous year, and the peak from the period in consideration. The cumulative capacity of wind power in England has increased by over 10 gigawatts in the last decade. Wind power capacity in the United Kingdom amounted to over 30 gigawatts in 2023, with England accounting for over half of installed wind farms. (source: Statista)
There are approximately 480,000 heat network customers in the UK, including 446,517 homes, being serviced by 14,000 heat networks and 3,000 different providers. This technology meets around 2% of current total heat demand for the UK. Almost all use a fossil fuel-based primary fuel source.
As part of the UK’s trajectory to decarbonise buildings and reach Net Zero carbon emissions by 2050, as well as the 2023 announced target to reduce energy consumption from buildings and industry by 15% by 2030, heat networks are set to play a growing role in the supply of low-carbon heat to homes, non-domestic buildings and the public sector. (source: Energy UK)
Scotland
With the growing shift away from fossil fuels, Scotland can help companies to transition from non-renewable energy sources to more sustainable solutions. Scotland has big opportunities for international investors, particularly in offshore wind, carbon capture, energy storage, hydrogen, and decarbonisation of heat and transport.
Boasting one of Europe’s largest offshore Renewable Energy Zones, Scotland is a natural location for offshore wind projects. As a world's top 10 offshore wind market, Scotland’s enormous project pipeline is creating opportunities for:
• Innovative floating wind technologies
• Substructures
• Mooring systems
• Large castings and forgings
• Turbine blades
• Electrical substations
• Export and array cable manufacturing
• Construction and associated supply chains
Source: Scottish Development International
Wales
Wales’ energy and environment sector employs over 58,000 people generating over £4.8 billion in revenue. The sector is strong in energy and waste management, water treatment, environmental monitoring and the built environment. It is a dynamic sector with rapid innovation in areas of marine energy initiatives and low-carbon projects, utility companies investing in sustainable energy sources and the deep seaports of Wales are equipped to support renewable projects. Many products and services are shipped across the world, to markets across Europe, Middle East, North America and Far East, helping them with sustainable development and developing a greener and cleaner future.
Source: Trade & Investment Wales
Northern Ireland
Area of sector expertise:
• Onshore/ offshore wind
• Energy efficiency
• Energy storage and intelligent systems
• Waste and recycling
• Water and waste water
• Low carbon transport
• Data centres
The low carbon sector employs more than 12,000 people in over 300 companies with an annual turnover in excess of £1.7bn in the region.
Source: Invest Northern Ireland
Clusters
Business cases
Meet the Swedish businesses that are making it in the UK renewable energy sector.
Smart City technology
The UK Smart City Tech sector represents a growing market, where smart cities continue to expand in both number and level of sophistication. Currently, almost a third of the UK’s urban areas with populations of over 100,000 have clear ambitions and/or substantial programmes of current activities labelled as ‘smart’.
While the past decade was characterised by pilot projects and a select group of innovator cities, the coming decade will likely see widespread uptake of smart city solutions. Hence, UK smart cities are set to provide growing commercial opportunities for Swedish companies offering solutions that address the challenges of urbanisation and its effect on the environment.
The UK’s diverse profile of smart cities provides opportunities for companies to match their capabilities with the particular needs of each city. For example, cities with advanced infrastructure (London, Glasgow, Bristol) can offer testbeds for commercialising novel technologies and solutions. Developing smart cities (Newcastle, Leeds, Nottingham) may still have infrastructure needs or require upgrades. Emerging smart cities (Aberdeen, Belfast, Cardiff) can act as a blank canvas for more holistic smart city solutions. In addition, different cities are developing research expertise and particular interest in different smart city areas, including: smart energy (Bristol, London); smart buildings (Glasgow, Nottingham); smart infrastructure (Newcastle, Brighton); smart mobility (Cambridge, Leeds). This presents an array of opportunities across the UK for Swedish solution providers operating within different areas of the smart city space.
Northern Ireland is recognised as a global leader in smart cities primarily because of its creativity and technological expertise. Its companies have a diverse range of smart city capabilities, providing solutions from data analytics, smart governance, smart mobility and infrastructure to smart buildings, energy and health.
Northern Irish companies are successfully exporting innovative smart solutions for intelligent tracking solutions for assets; data insights to help transform cities for planning; providing pedestrian & crowd analytics insights; remote building and machine monitoring; enabling the use of technology and data to improve and connect networks, services and the urban environment for the benefit of citizens and the economy.
In addition to business opportunities, the UK provides support and funding for smart city innovations. Programmes like the Connected Places Catapult (the UK’s innovation accelerator for cities) help businesses develop, implement and commercialise the latest technology and innovation for existing markets, as well as create demand and grow new markets in the UK. Innovate UK (the country’s innovation agency) provides funding for business and research collaborations that accelerate innovation and drive business investment into R&D. Support is available across all sectors, value chains and UK regions. Innovate UK’s recent funding for smart cities has included: the cyber security challenges in the Internet of Things; innovative 5G infrastructure technologies; low carbon technologies; connected and autonomous vehicles; and sustainable urbanisation.
The UK also provides support for companies through R&D tax credits and is home to numerous centres of excellence and university collaborations that are focused on smart city developments.
Sweden has a long history of developing innovative solutions across a diverse array of cleantech and smart city tech areas. These include solutions within energy, waste management, mobility and many other areas related to the sustainable development of cities. As a world leader in digital competitiveness and innovation, Sweden also develops the digital technologies that hold together the grid for smart city solutions – particularly within areas such as renewable energy, smart grids, water, waste-to-energy and smart mobility, which can help shape a more sustainable future for cities in the UK.
Business case
Clusters
Wind
North Scotland, Forth & Tay (Scotland), North East, North West, Humber, East Anglia, Solent, North Wales.
Heat
Bristol, Liverpool, Leeds, London, Scotland.
Wave and tidal
Scotland: Lewis, Shetland (Scotland), Northern Ireland: Strangford, England: Cornwall, Falmouth, Wales: Pembrokeshire, Anglesey
Smart City solutions
Edinburgh, Glasgow, Manchester, Birmingham, Leeds, Nottingham, Liverpool, London, Oxford, Cambridge
Networks
Grants, tax reliefs and other incentives for businesses
Innovate UK/Innovation competitions
Funding for innovative smart energy systems/competitions
Heat Networks Investment Project
Local Authority Support by the Heat Networks Delivery Unit
Scottish Government/Scotland’s Heat Transition Deal
There are a range of financial incentives open to companies looking to develop solutions for the energy transition in Scotland, including: Green Jobs Funding Call, Energy Transition Fund, H2020 Funds, Scottish National Investment Bank, Green Investment Bank, Germany’s Hydrogen Strategy – Int. Partnerships, BEIS Fund UK Gov
Invest Northern Ireland may be able to offer companies: Revenue grants towards start-up costs, interest relief, factory rental costs, training costs, marketing development costs and R&D. R&D capital spending can be written off against income. Also pre-employment training grants, employment grants, finance investment in the share capital of a company and government loans at commercial and concessionary rates, property tax exemptions for manufacturing property, depreciation allowances. Northern Ireland also has an active venture capital market catering for projects up to £2m.