The UK’s industrial energy crisis cannot be solved with short-term measures like green levy cuts. With gas prices driving up costs and exposing the sector to global volatility, only a long-term shift to renewables offers real relief. Solar power, paired with battery energy storage systems, provides a scalable, decentralised and cost-effective solution that puts control back in the hands of British industry.
The cost of industrial energy in the UK is among the highest in the world. This isn’t just a line from a market memo, or a fiscal review, it’s a pressing issue with far-reaching implications for British industry, competitiveness and national security.
Businesses operating in this country pay a heavy premium to do so. Energy costs in the UK are 46% higher than the average across the 32 nations in the International Energy Agency, and more than four times higher than in the US. These are costs that squeeze margins, deter investment and weaken our industrial base, all before any other economic pressure even comes into play.
Whilst the UK has recently achieved many significant milestones in forming a cheaper, cleaner energy network, 2024 was the first year where renewable sources generated more energy than fossil fuels, and the grid reached the milestone of 19 GW of solar capacity earlier this summer, not enough has been done to reduce industrial energy costs.
The government has rightly identified this as a key issue to be addressed, and put forward a series of measures in its recent Industrial Strategy, aiming to cut the bills of electricity-intensive industry by up to 25% from 2027.
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