Britain is one of the global leaders in the adoption of renewable energy as countries around the globe move to slash their carbon emissions amid the threats posed by climate change.

Successive UK governments have enacted measures to slash harmful emissions while at the same time increasing energy security through sustainable means as Britain moves to a green economy. 

The government's flagship Net Zero Strategy, a legally binding framework that aims to decarbonise the entire economy by 2050, aligns with the Paris Agreement signed by 196 parties to the UN Climate Change Conference in 2016.

It’s aimed at tackling climate change through the reduction of carbon emissions.   

This means companies of all sizes and in all sectors throughout the UK have no option but to transition to clean energy in the coming years.

It represents an investment in renewable energy to power their businesses, ditching fossil fuel sources for electricity generated by solar power, wind turbines, and other kinds of green and sustainable energy.

The Current State of Renewable Energy in the UK

The total energy industry in the UK contributed between 45-50% of renewables in 2023, according to the National Energy System Operator, a nationalised body established by the 2023 Energy Act designed to assist in Britain's transition to green energy and the net zero target. 

This means the UK is now getting up to half its power from renewable energy industry sources like:

• Wind Energy: The UK leads Europe in offshore wind developments, with significant growth in onshore wind farms in recent years.‍
• Solar Power: Expansion in residential and commercial solar installations, along with lower costs for the technology.‍
• Hydropower: Limited but still of value to green energy power generation, with new innovations in pumped storage.‍
• Biomass: Transitioning from coal to biomass at power stations like Drax.‍
• Emerging Tech: Innovations in hydrogen, tidal and floating wind energy generation across the UK.

The foundation of the UK government's transition to a green economy is the Climate Change Act of 2008, which sets out policies targeting the reduction of greenhouse gases by providing a method of carbon budgeting and other measures companies must adopt to go green.

Grants and Funding for Renewable Energy Projects

When looking at projects for renewable energy so companies can cut their carbon emissions and be in compliance with green legislation, a number of grants and other sources of funding are available in the UK.

• Innovate UK Smart Grants

Offers Smart Grants to support game-changing and commercially viable R&D innovations that can significantly impact the UK economy. Up to £15 million is available in the form of grants.

• Energy Catalyst Programme

Supports UK and overseas businesses and organisations to develop innovative, market-focused energy technologies that will spur economic growth. 

• Industrial Energy Transformation Fund 

Supports businesses with high energy use to transition to a low-carbon future and slash their power bills while lowering their carbon emissions. Around £185 million is available for eco-friendly upgrades, including efficient insulation, heat pumps, and solar panel installation.

Related roles with job descriptions: Climate consultant | Carbon neutral consultant | Net Zero consultant

Other funding opportunities include:

• Contracts for Difference scheme: This is a contract between a low-carbon electricity producer and the government's Low Carbon Contracts Company to stabilise prices by providing a fixed energy price.‍
• Smart Export Guarantee: Provides revenue to small-scale power generators for surplus power exported to the electricity grid.‍
• Renewable Heat Incentive: Companies can receive quarterly payments for producing renewable heat through biomass boilers, heat pumps or solar thermal systems.

Local councils across the UK have various types of regional funding opportunities. Check with your local authority to see what's available for your area.  

Financial Modelling for Renewable Energy Projects

Companies investing in projects for renewable energy typically use financial modelling to work out whether it's feasible. This is done by using various tools to forecast investment, risks, and returns, and so it lets executives make an informed decision. 

The main elements of financial modelling are:

• Capital Expenditure: Upfront costs like land, equipment and equipment installation.‍
• Operational Expenditure: Ongoing costs like insurance and maintenance.
• ‍Revenue Streams: Income from power purchase agreements, government grants and subsidies or green certificates.
• ‍Sensitivity Analysis: Assessing energy project viability under varying scenarios, such as energy prices, output and changes to government policies.  

Firms often use tools like HOMER Pro, SAM (System Advisor Model) and online calculators like the UK Government's solar ROI calculator to do their financial modelling for renewable energy projects. 

Top Renewable Energy Projects in the UK

The following are the main renewable energy projects currently operating in the UK. 

Offshore Wind Projects

• Hornsea Project One and Two: Combined capacity exceeds 2.6 GW, which is sufficient to power millions of homes across the UK.‍
• Dogger Bank Wind Farm: Will be one the world’s largest offshore wind farms and have a capacity of 3.6 GW.

Solar Power

 West Raynham Solar Farm: Generating 50 MW, it's among the largest solar farms in the UK.

• Community Solar Initiatives: Examples like Brighton Energy Coop empower communities through solar generation.

Hydropower Projects

• Cruachan Power Station: Known as a "hollow mountain" facility, as it’s deep inside the mountain, this station provides grid stability and storage.

Biomass and Waste-to-Energy

• Drax Power Station: Transitioned from coal to sustainable biomass.
• Energy from Waste: Transforming waste into energy in cities like London and Manchester.

Green Future

Along with these green power projects are the promise of emerging renewable technologies like hydrogen power at H2 Teesside, which aims to establish the UK as a global hydrogen leader; floating Wind Farms in deep waters; and tidal energy, with pilot projects underway in places like MeyGen in Scotland.

All these and more position the UK as a global leader not only in implementing green energy sources but as an economy that will, in the next couple of decades, unshackle itself from damaging fossil fuels and become completely environmentally friendly.

Related roles with job descriptions: Certified eco consultant | Carbon accountant | Sustainability consultant