There’s been a rapid change in the UK energy generation fuel mix over recent years, with a clear shift away from coal generation to gas-fired and renewable sources, mainly wind and solar.

Electricity supplied from coal-fired power stations has reduced significantly over the last five years, reflecting accelerated plant closures and conversions to biomass plants. Coal-fired power stations accounted for just 5% of UK electricity generation, down from 30% in 2014. Gas-fired plants supplied 40% of electricity in 2018, up from 30% in 2014

The share of nuclear fuel generation has remained relatively stable in recent years, oscillating between 19% and 21%. All remaining UK nuclear sites are due to be decommissioned by 2035. Hinkley Point C is the only new nuclear power station currently under construction, scheduled to become operational by the mid-2020s.

Electricity supplied from wind and solar sources has seen strong growth in recent years due to rapid capacity expansion, accounting for 21% of the total in 2018, up from 3% in 2010. The development pipeline for offshore wind projects remains particularly healthy.

The terms of reference for this Report concern the UK energy market, specifically:

• electricity generation and demand

• gas supply and demand

• retail energy market.

Electricity generation refers to companies producing electricity in power stations that operate under generation licences. The Report covers the following:

• coal generation

• gas

• nuclear

• renewables (wind, solar, hydro, bioenergy, etc).

The UK gas market can be separated into two sections: upstream (gas supply) and downstream (gas demand). The Report covers gas supply (production, imports, exports).

The retail energy market covers home energy providers in the UK, including:

• electricity suppliers

• gas suppliers.

This Report predominantly covers the residential energy supply market.