The United Kingdom is losing traction in its energy transition. So warns the Climate Change Committee (CCC) in its 2025 annual report to Parliament, where it states that the expansion of renewable energy is advancing slowly, without a clear roadmap and with growing risks to achieving the 2050 net-zero emissions target.

The over-400-page document is blunt: the UK’s power system is not evolving at the necessary pace. Although the country has made progress in the last decade, the CCC notes that momentum has slowed. “The UK has historically been a world leader in offshore wind energy, but the recent pause in wind auctions casts doubt on the continuation of that leadership,” the Committee states.

Wind Auctions Fail: A Wake-Up Call

One of the key issues is the lack of installed renewable capacity. According to the report, the 2023 Contracts for Difference (CfD) auction failed to attract any offshore wind projects, a critical technology for the future energy mix. This failure “must be urgently corrected”, demands the CCC, warning of the high opportunity costs and the potential loss of international credibility.

Currently, renewable generation covers around 47% of the UK’s electricity. However, the net annual growth in new installed capacity has fallen significantly compared to pre-2020 levels. The Committee estimates that current renewable capacity must more than double by 2035, including at least 50 GW of offshore wind and 70 GW of solar energy.

No Grid, No Storage: A System at Risk

The expansion of the power grid and energy storage is not aligned with decarbonisation goals. “There is no coherent strategy to deploy new grid and storage capacity that enables the integration of renewables,” the report states. This directly affects system flexibility, which is crucial to accommodate intermittent sources like wind and solar.

Currently, the UK system has around 6 GW of storage capacity, but the CCC estimates that 20 to 30 GW will be needed by 2035. There is also a major bottleneck in grid connection processes, delaying project integration by up to 10 years. “The energy planning framework is inefficient and fails to anticipate future demand,” the Committee warns.

Private Investment Down Amid Uncertainty

The Committee also warns of the lack of clear signals for private investment. “Regulatory risks and political uncertainty are deterring the financing of new projects,” it stresses. This is reflected in a 10% drop in clean tech investments compared to 2022.

The report highlights that the absence of a stable, long-term carbon price and the lack of guaranteed long-term revenues are limiting investor appetite, even in mature technologies such as onshore wind.

Flexibility and Digitalisation: Untapped Opportunities

Another central issue is the technological and digital integration of the energy system, particularly the need to accelerate the development of flexibility solutions, demand response, and long-duration storage. “A robust policy framework enabling these solutions has not been defined,” the CCC states.

The Committee recommends implementing market mechanisms that explicitly value flexibility and backup, and that allow active participation by aggregators and industrial users. Currently, UK market rules “penalise intermittency” and do not adequately reflect the value added by support technologies.

UK Falls Behind Global Leaders

On the international front, the Committee warns that other countries are accelerating their energy transitions while the UK lags. It cites the United States, which has mobilised massive investments in renewables under the Inflation Reduction Act (IRA), and the European Union, which has raised its 2030 targets. “The UK risks losing competitiveness and falling behind in the global race for clean technologies,” the report warns.

In 2023, the UK was surpassed by Germany and Spain in added renewable capacity, while China and the US led global growth.

Outdated, Fragmented Energy Planning

In terms of long-term energy planning, the CCC criticises the Government for not updating its strategic electricity system plan since 2020, creating “a serious disconnect between climate targets and current actions”. The Committee insists that a new framework is needed to integrate planning across generation, grid, storage, and demand.

“The progress seen in previous years is at risk unless urgent decisions are taken,” the Committee concludes. The stagnation of renewables not only jeopardises climate targets but also the UK’s energy security and its position as a global leader.