Energy Trends up to 2024 - Understand Electricity use in the UK

Energy consumption reduced in 2023, led by a fall in household consumption for both gas and electricity with overall household consumption lower than at any point in the last fifty years. Demand for transport increased 3 per cent on last year but remains down on pre-pandemic levels despite an increase in aviation demand on 2022.

Consumption by industrial users also dropped on 2022 and like household consumption is at its lowest level in over 50 years. UK energy production in 2023 dropped 9 per cent to the lowest level since records began in 1948, and is down 36 per cent on 2010, and 66 per cent on 1999 when UK production peaked. Oil production reached a record low whilst gas production reached the second lowest output on record. Nuclear output, following both plant closure and maintenance outages, also hit a record low and is down 62 per cent on 1998 when output peaked. Production from wind, solar and hydro increased by 2 per cent but these renewable technologies contribute less primary energy than fossil fuels.

Production from renewable technologies matched the previous record high of 2022 but renewables’ share of electricity generation increased to a record 47.3 per cent. Wind generation hit a record high share of 28.7 per cent of generation, up from 2.7 per cent in 2010. Generation from fossil fuels fell to a record low, a share of 36.3 per cent but generation from gas remained the principal form of UK generation at 34.3 per cent. Low carbon generation (renewables & nuclear) increased to a record high share of 61.5 per cent.

Despite lower energy demand, reduced energy production meant that net import dependency increased to 41.1 per cent in 2023 from 37.3 per cent in 2022, with electricity imports increasing significantly on 2022. Norway and the US were the principal sources of UK’s imported energy in 2023.

Key Headlines

In 2023 total production was 100.4 million tonnes of oil equivalent, 8.9 per cent lower than in 2022 and at a record low level in the published series, and 66 per cent lower than in 1999 when UK production peaked. Production levels for all fuels except wind and solar are down on 2022, with coal, oil and nuclear output all at record lows, whilst output from wind, solar and hydro was at a record high. Production in the fourth quarter of 2023 was 9.2 per cent lower than the same period in 2022, despite increased output from wind and solar due to increased capacity. Energy consumption in 2023 was 1.6 per cent lower than in 2022 likely reflecting the impact of higher energy and other prices. Transport consumption rose by 3.1 per cent, despite jet fuel demand remaining below pre-pandemic averages. Domestic consumption fell by 6.5 per cent to a record low level in the published series, industrial consumption fell by 3.4 per cent also to a record low level and other final users’ consumption fell by 3.0 per cent. Energy consumption in the domestic, industrial and other final users sectors all fell in the fourth quarter of 2023 reflecting the continued impact of higher energy and other prices. Domestic consumption fell by 1.8 per cent despite warmer temperatures than the same period the previous year and reached a record low for the fourth quarter of a year in the published series. Industrial consumption fell by 2.4 per cent, also to a record low for the fourth quarter. On a seasonally and temperature adjusted basis, final energy consumption fell by 0.4 per cent, with falls in all sectors except transport.