While the UK electrical industry is quietly powering an incredible £38.5 billion in annual turnover, its true strength lies in the vibrant details, from the surge in renewables to the critical need for skilled electricians, that are shaping the future of energy.
Key Takeaways
- The UK electrical industry generated a total turnover of £38.5 billion in 2022, representing 1.8% of UK GDP
- Electrical equipment manufacturing sub-sector contributed £12.4 billion to UK GVA in 2021
- Wholesale of electrical equipment sector grew by 4.2% YoY in 2023 Q1, reaching £6.7 billion
- UK electrical industry employed 650,000 people directly in 2022
- Electrical contractors numbered 42,500 firms employing 220,000 workers in 2023
- 15% of UK electrical workforce aged under 25 in 2022
- UK electricity generation totalled 317 TWh in 2022
- Renewables share of electricity generation reached 41.5% in 2022
- Onshore wind generated 36.7 TWh, 11.6% of total in 2022
- Domestic electricity consumption averaged 3,200 kWh per household in 2022
- Total final electricity consumption 122 TWh domestic sector 2022
- Industrial electricity use 78 TWh in 2022, down 5% YoY
- UK grid investment totalled £8.2 billion in 2022
- Substation projects 150 new/upgrade sites 2023
- Overhead line replacements 1,200 km in 2022
The UK electrical industry is a large and diverse sector vital to the nation's economy and energy transition.
Consumption and Demand
- Domestic electricity consumption averaged 3,200 kWh per household in 2022
- Total final electricity consumption 122 TWh domestic sector 2022
- Industrial electricity use 78 TWh in 2022, down 5% YoY
- Commercial/services sector consumed 92 TWh electricity 2022
- Transport electricity demand 1.2 TWh from EVs in 2022
- Peak demand 53.5 GW winter 2022/23
- Average wholesale price £250/MWh in 2022
- Domestic dual fuel bills averaged £2,500/year in 2023
- Non-domestic max demand tariffs cover 70 GW capacity
- Heat pumps electricity use added 2.5 TWh demand 2022
- Data centres electricity consumption 17 TWh projected 2025 but 12 TWh 2022
- Electricity intensity per GDP fell 2.1% in 2022
- Smart meter rollout 32 million electricity meters by 2023
- Demand side response capacity 5 GW in 2023
- Average household consumption down 9% to 2,900 kWh 2023
- Steel industry electricity use 12 TWh 2022
- Supermarkets refrigeration 15 TWh annually
- EV fleet electricity 0.8 TWh public charging 2022
- Ventilation fans in buildings 8 TWh 2022
- Lighting consumption total 40 TWh across sectors 2022
- Chemical sector electricity 18 TWh 2022
- Remote working reduced office demand 4 TWh 2022
- Hourly peak pricing trials saved 10% peak demand
- Food/beverage industry 14 TWh electricity 2022
- Hospitals/NHS electricity 10 TWh 2022
- Cement production electricity 5 TWh 2022
Consumption and Demand Interpretation
While households tightened their belts by 9%, data centers and heat pumps quietly began plugging in their own extensions to the national grid, proving that our electricity story is becoming less about the traditional kettle and more about the server and the heat pump.
Employment and Skills
- UK electrical industry employed 650,000 people directly in 2022
- Electrical contractors numbered 42,500 firms employing 220,000 workers in 2023
- 15% of UK electrical workforce aged under 25 in 2022
- Average salary for UK electricians £38,500 in 2023
- 28,000 electrical apprenticeships started in 2022/23
- 12% gender diversity in electrical installation workforce in 2023
- Shortage of 25,000 skilled electricians reported in 2023
- 65% of electrical firms reported recruitment difficulties in 2022
- Electrical engineers numbered 45,000 in UK in 2021
- Training spend by electrical firms averaged £2,500 per employee in 2022
- 18% growth in electrical technician jobs 2018-2023
- Over 50,000 NICEIC registered electricians in 2023
- Electrical manufacturing employed 85,000 in 2022
- 7,200 electrical engineering graduates annually in 2022
- 32% of workforce hold NVQ Level 3 or above in electrotechnical trades
- Labour turnover rate in electrical contracting 14% in 2023
- 4,500 new ELECSA certifications issued monthly average 2023
- Female electricians increased 22% from 2018-2023 to 12,000
- Self-employed electricians comprise 55% of workforce, 120,000 in 2022
- Regional employment highest in London/South East at 180,000 jobs
- Average hours worked by electricians 42.3 per week in 2023
- 9,800 electrical NVQ Level 2 completions in 2022/23
- Zero-hour contracts in electrical sector 3.2% of workforce
- Overseas workers 8% of electrical industry in 2023
- Upskilling in EV charging for 35% of electricians in 2023
- Electrical wholesalers employed 45,000 in 2022
- Youth unemployment in electrical trades 4.1% vs national 12%
- 2,300 electrical HND/HNC awards in 2022
- Firm size: 78% sole traders/micro firms in contracting
Employment and Skills Interpretation
While boasting nearly half a million sparkies, the UK electrical industry is ironically short-circuiting, with a glaring talent gap, an ageing workforce, and a serious lack of gender diversity, all while trying to power the future on a frayed and fraying cable of recruitment.
Generation and Sources
- UK electricity generation totalled 317 TWh in 2022
- Renewables share of electricity generation reached 41.5% in 2022
- Onshore wind generated 36.7 TWh, 11.6% of total in 2022
- Offshore wind capacity 13.9 GW at end 2022
- Solar PV generation 13.8 TWh in 2022, up 17%
- Gas-fired generation 129 TWh, 40.6% share in 2022
- Nuclear output 70.5 TWh in 2022
- Biomass generation 11.2 TWh in 2022
- Hydro generation 5.1 TWh, 1.6% of total 2022
- Total installed capacity 82.5 GW end 2022
- Interconnector imports 23.4 TWh net in 2022
- Coal generation minimal 0.04 TWh in 2022
- Pumped storage output 2.6 TWh in 2022
- New renewable capacity added 2.2 GW in 2022
- CCGT capacity 30.1 GW operational 2022
- Wind total generation 79.9 TWh, 25% share 2022
- Floating offshore wind pilots 30 MW in 2023
- Energy from waste electrical generation 4.8 TWh 2022
- Total low-carbon generation 182 TWh, 57% in 2022
- Scotland wind generation 30.2 TWh in 2022
- Battery storage capacity reached 3.1 GW end 2022
- UK geothermal electricity pilot 0.02 TWh 2022
- OCGT generation 1.1 TWh peaking in 2022
- Marine energy generation negligible 0.001 TWh 2022
- Total electricity supplied 310 TWh to public in 2022
Generation and Sources Interpretation
Even as renewables now provide a surprisingly respectable 41.5% of our power, that stubborn 40.6% slice from gas-fired generation reminds us we're still in a race against time, not just the elements.
Infrastructure and Investment
- UK grid investment totalled £8.2 billion in 2022
- Substation projects 150 new/upgrade sites 2023
- Overhead line replacements 1,200 km in 2022
- HVDC interconnectors 8 GW capacity 2023
- Smart grid tech investment £1.5 billion 2022
- Underground cabling 500 km laid 2022
- Battery storage projects 50 operational 3 GW 2023
- Offshore grid connections 20 GW planned by 2030
- Distribution network operators capex £5.4 billion 2022
- Transformer manufacturing ramp-up 20% capacity increase 2023
- EV charger installations 50,000 public points 2023
- Grid reinforcement for net zero £20-30 billion needed by 2030
- Digital substations 100 deployed by 2025 target
- Fibre optic for grid comms 10,000 km 2022
- Active network management systems 15 DNOs using 2023
- Offshore wind farm grid connections 14 GW operational 2023
- Voltage control devices 5,000 installed 2022
- RIIO-2 transmission investment £7.9 billion allowed 2021-2026
- Microgrid pilots 20 projects funded £100 million 2023
- Fault levels managed across 400 GW grid 2023
- Cable fault repairs average 24 hours response 2022
- Supergrid transformers 350 units total 2023
- Demand flexibility service procured 1.3 GW response 2023
- HV substation automation 85% coverage 2023
- Interconnector projects under construction 5 GW 2023
Infrastructure and Investment Interpretation
The UK is painstakingly rewiring the nation for a green future, one careful, costly, and critical project at a time.
Market Size and Economic Impact
- The UK electrical industry generated a total turnover of £38.5 billion in 2022, representing 1.8% of UK GDP
- Electrical equipment manufacturing sub-sector contributed £12.4 billion to UK GVA in 2021
- Wholesale of electrical equipment sector grew by 4.2% YoY in 2023 Q1, reaching £6.7 billion
- UK electrical contracting market size reached £17.2 billion in 2022
- Exports from UK electrical industry totalled £9.8 billion in 2022, up 3.1% from 2021
- Installation and maintenance services accounted for 45% of electrical industry revenue at £17.3 billion in 2022
- Renewable energy equipment sales within electrical sector hit £4.5 billion in 2023
- Electrical goods retail sector turnover was £5.6 billion in 2022
- UK lighting equipment market valued at £2.1 billion in 2023, growing 5.8%
- Cable and wiring market in UK electrical industry worth £3.4 billion in 2022
- Switchgear and controlgear sector revenue £1.9 billion in 2021
- UK electrical testing and inspection services market £1.2 billion in 2023
- Power distribution equipment imports totalled £7.3 billion in 2022
- Domestic electrical appliances market £8.9 billion in 2022
- Industrial electrical equipment sales £4.7 billion in 2023 Q2
- UK electrical services export value £2.4 billion in 2022
- Smart home electrical devices market £1.5 billion in 2023
- Electrical installation firms' average turnover £450,000 in 2022
- UK electrical R&D spend £1.1 billion in 2022
- EV charging infrastructure equipment market £900 million in 2023
- Electrical repair services sector £650 million in 2022
- UK wire and cable manufacturing output £2.8 billion in 2021
- Electrical wholesalers turnover £11.2 billion in 2023
- Building services electrical sub-sector £6.3 billion in 2022
- UK solar PV electrical components market £1.8 billion in 2023
- Data centre electrical fit-out market £2.2 billion in 2022
- Electrical safety equipment sales £750 million in 2023
- UK wind turbine electrical systems £3.1 billion in 2022
- Commercial electrical contracting £4.9 billion in 2023
- Electrical engineering consultancy fees £1.4 billion in 2022
Market Size and Economic Impact Interpretation
While the UK electrical industry might appear from these figures to be a web of lucrative complexity, its enduring truth is that it fundamentally runs on the simple, serious business of keeping the lights on—and increasingly, on turning them green.
Sources & References
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