Report Summary

Current UK Energy Dependency Landscape

The UK's energy mix has undergone significant changes in recent years, with a clear trend towards decarbonization. According to the latest Energy Trends and Prices Statistical Release from the UK Government, as of January 2025:

• Renewables provided 43.2% of electricity generation by Major Power Producers
• Gas accounted for 39.4% of electricity generation
• Nuclear power contributed 16.4%
• Coal's share has dwindled to a mere 0.1%

This breakdown illustrates the UK's progress in reducing its reliance on fossil fuels, particularly coal. However, it also highlights the continued significance of natural gas in the energy mix.

Natural Gas Dependency

Despite the growth in renewable energy, natural gas remains a crucial component of the UK's energy system. The residential and commercial sectors are the largest consumers of natural gas, using an estimated 40.7 billion cubic meters in 2023, followed by the power sector at about 15 billion cubic meters. This reliance on gas has significant implications for energy security and price stability.

The UK's gas import dependency has been increasing due to declining domestic production. According to Statista's forecast, "The United Kingdom's dependency on imported gas is anticipated to rise from 2022 onwards, as production levels decrease over the period. The UK's gas import dependency is expected to reach a peak of 85 percent from 2048 onwards."

This growing dependence on imported gas exposes the UK to geopolitical risks and price volatility in international markets. The government's Energy Security Plan acknowledges that while gas from the UK Continental Shelf (UKCS) and the Norwegian Continental Shelf forms the majority of Britain's gas supply (average of 80% across 2017 to 2021), Liquified Natural Gas (LNG) plays an increasingly important role, especially during peak demand periods.