With ambitious renewable energy targets looming, the UK is under increasing pressure to accelerate its transition away from oil and gas.
The UK government, six months into its term, has doubled down on clean energy commitments, including closing the last coal power plant, halting new North Sea drilling licences, and increasing the windfall tax on offshore operators, all while targeting net-zero emissions by 2050.
Despite these efforts, fossil fuels remain a dominant energy source.
In 2022, they accounted for 78 per cent of the UK’s primary energy consumption, with gas and oil contributing 39 per cent and 36 per cent respectively, according to the Department for Energy Security and Net Zero (DESNZ).
Paul Hasselbrinck, senior energy analyst at GlobalData, noted that as of early 2024, 83 per cent of domestic energy production and imports were fossil fuels.
However, progress in renewable energy is evident. Low-carbon sources accounted for 20.7 per cent of the UK’s primary energy consumption in 2022, a significant increase from 12 per cent in 2012.
The UK aims for an energy mix that gradually increases wind and solar power while reducing reliance on oil and gas, with natural gas and nuclear power bridging the gaps during intermittency issues.
Naomi Baker, senior policy manager at Energy UK, emphasised the need for flexible demand and increased battery storage to balance the system as gas usage declines.
Battery storage costs have decreased by 90 per cent over the past decade, with demand rising from 1GW to 4GW in the last four years. However, Baker said this needs to increase four to five times by 2030.
Prime Minister Keir Starmer’s announcement at COP29 of an 81 per cent emissions reduction target by 2035, up from the previous 78 per cent, has further intensified the pressure.
The plan to wind down offshore oil and gas projects has faced criticism from various groups.
Unite, the UK’s biggest union, has voiced concerns about potential job losses and the risk of offshore workers becoming the “coal miners of net zero”.
Their campaign, ‘No Ban Without a Plan,’ calls for a halt on the ban until guaranteed jobs are secured for the 150,000-200,000 workers in North Sea operations.
Environmental groups, on the other hand, advocate for stricter measures against offshore projects.
The Rosebank oil and gas field, set to begin production in 2026, is a prime example of the ongoing debate.
Environmental groups, including Uplift and Greenpeace UK, argue that the project should never have been approved, citing minimal benefits to energy security and high environmental costs.
Despite the challenges, the UK’s renewable energy targets are attainable with strategic government action.
Mark Williams, head of analysis at Energy UK, highlighted the need for rapid infrastructure development, estimating costs of £40 billion (AU$ 80 billion) per year to 2030.
He emphasised the importance of government mechanisms to facilitate private sector investment, improve grid infrastructure, and streamline regulatory processes.
Offshore wind presents a significant opportunity, with the Offshore Wind Industry Council projecting an increase from 31,000 to 97,000 jobs in the sector by 2030.
Williams stressed the need for re-skilling initiatives to support workers transitioning from the declining offshore sector to renewable energy jobs.
With decisive action on net zero from the UK government, industry members remain optimistic about the future, provided that offshore workers receive a just transition.
Baker noted that faster decision-making from the new government is crucial for attracting investors and creating a clearer vision for the industry.
