Record fall in UK and EU power sector emissions in 2023
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London
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7 February 2024
Like the EU, the UK also saw power sector emissions fall, with a 16% decrease driven by record wind generation of 82 TWh and a significant drop in gas generation of 20% (-25 TWh). Demand also fell by 2% to 317 TWh in 2023, its lowest level since 1989.
Wind and solar accounted for a record third (33%) of UK electricity generation in 2023 — the highest combined levels ever, up from 29% in 2022. With the fall in gas generation, this pushed clean power over the 60% share mark for the first time. This was due to wind achieving a record generation share of 28%, on par with Germany and only surpassed in the EU by Denmark, Ireland and Portugal. Solar power accounted for just 4.6% of UK electricity, half the EU average of 9.1%.
Despite this step forward for the UK’s clean power transition, 2023 also brought challenges. September’s offshore wind auction failed to secure any bids, a threat to the UK’s target of 50 GW of offshore wind by 2030. This resulted from the maximum Contracts for Difference strike price (£44 per megawatt hour) failing to account for increased costs. However, the government has taken steps to address this, with an announcement in November that the strike price for the next auction would be increased by 66%.
Ember’s analysis highlights that in the EU, flexibility mechanisms such as grids, storage, and demand side response are gaining increasing attention as wind and solar grow. The UK is a leading example when it comes to demand side flexibility. National Grid ESO ran its first Demand Flexibility Service from November 2022 to March 2023, during which time households and businesses saved 3.3 GWh of electricity, enough to power 10 million homes.