As the UK's aging North Sea fields decline and its reliance on imported energy grows, the nation's power mix is undergoing a dramatic transformation, a pivotal shift revealed by its latest energy statistics.
Key Takeaways
- In 2022, UK crude oil production averaged 0.9 million barrels per day, down 8.4% from 2021 due to field declines in the North Sea
- UK natural gas production in 2022 was 27.4 billion cubic metres (bcm), representing a 22% decrease from 2021 amid maturing North Sea fields
- The UK produced 34.1 million tonnes of oil equivalent (Mtoe) from indigenous fossil fuels in 2022, accounting for 40% of primary energy supply
- Electricity generation from fossil fuels was 98 TWh in 2023, 36% of total UK generation
- UK total electricity generation reached 318 TWh in 2023, up 2% from 2022 driven by renewables growth
- Gas-fired power stations generated 126 TWh in 2023, accounting for 40% of electricity supply
- Total renewables generation hit 137 TWh in 2023, 43% of electricity supply
- Offshore wind generated 59 TWh in 2023, record 19% of UK electricity
- Installed offshore wind capacity reached 14.7 GW by end-2023, up 1.4 GW
- Total UK primary energy consumption fell to 159 Mtoe in 2022, 1% down from 2021
- Final energy consumption by industry was 20 Mtoe in 2022, 18% of total
- Household energy use totalled 38 Mtoe in 2022, up 5% due to cold weather
- UK CO2 emissions from energy supply were 296 MtCO2 in 2022, down 8% from 2021
- Total UK greenhouse gas emissions fell 5% to 417 MtCO2e in 2022
- Energy sector CO2 intensity dropped to 140 gCO2/kWh in 2022 from 160 g/kWh
The UK's energy mix is rapidly shifting from declining fossil fuels to growing renewables.
Consumption
- Total UK primary energy consumption fell to 159 Mtoe in 2022, 1% down from 2021
- Final energy consumption by industry was 20 Mtoe in 2022, 18% of total
- Household energy use totalled 38 Mtoe in 2022, up 5% due to cold weather
- Transport sector consumed 43 Mtoe in 2022, 79% from oil products
- Natural gas accounted for 32% of final energy consumption in 2022 at 45 Mtoe
- Electricity final consumption was 33 Mtoe in 2022, 23% of total
- UK petrol consumption was 11.5 million tonnes in 2022, down 4% post-COVID recovery
- Diesel road fuel use reached 24 million tonnes in 2022, 90% for heavy goods
- Jet kerosene consumption rebounded to 5.8 million tonnes in 2022
- Heat demand in buildings was 130 TWh in 2022, 80% from gas boilers
- Industrial energy intensity improved 2% in 2022 to 0.12 Mtoe per £m GVA
- UK gas demand totalled 72 bcm in 2022, down 7% from 2021
- Coal consumption for transformation was 10 Mtoe in 2022, mostly power
- Renewable energy share of final consumption was 13% in 2022, up from 11%
- Average household gas consumption was 11,500 kWh in 2022
- Non-domestic electricity use averaged 2,800 MWh per site in 2022
- Road transport energy use fell 2% to 40 Mtoe in 2022 despite EV growth
- UK energy consumption per capita was 50 GJ in 2022, below EU average
- Services sector energy demand was 15 Mtoe in 2022, 13% of total
- Biofuel blending in transport reached 7.5% by energy in 2022
- Heating oil use in off-grid homes was 1.8 Mtoe in 2022
- Electricity use in transport grew 40% to 1 TWh in 2022 from EVs
- Gas for non-energy uses like petrochemicals was 4 Mtoe in 2022
- Total final energy consumption efficiency improved 1.5% in 2022
Consumption Interpretation
While overall energy use is slightly declining thanks to efficiency gains and a slow green transition, the stubborn dominance of fossil fuels in our homes, heavy transport, and industry reveals a system still far too cosy with its old vices.
Economic
- UK energy sector employed 424,000 people in 2022, 1.2% of workforce
- Oil and gas sector GVA was £25 billion in 2022, 1% of UK GDP
- Renewable energy investment reached £23 billion in 2022
- UK energy import bill totalled £110 billion in 2022, record high
- Household energy bills averaged £3,549 annually in 2023 under price cap
- Offshore wind created 27,000 jobs by end-2023
- Energy productivity rose 5% to £72 per kg oil equivalent in 2022
- Net zero investment needed £30-50bn/year to 2050, per 2023 review
- UK ETS auction revenues hit £6 billion in 2022 for low-carbon tech
- Domestic energy suppliers market share: Big 6 at 70% in 2023
- Gas wholesale price peaked at £4.5/therm in August 2022
- Energy R&D spend was £1.2 billion public in 2022
- North Sea oil/gas tax take was £2.5 billion in 2022/23
- EV charging infrastructure investment £1bn by 2025 target, 2023 status
- UK green finance bonds issued £15bn for energy projects in 2022
- Energy company obligation delivered 250,000 measures in 2022/23
- Great British Insulation Scheme funded 100,000 homes by 2023
- Oil/gas decommissioning spend £1bn in 2022
- Renewables export value £2.5bn in 2022 from tech/services
- Household solar payback period averaged 7 years in 2023
Economic Interpretation
While employing over 1% of the workforce and generating similar GDP, the UK's energy story is a costly and chaotic balancing act, investing tens of billions in a greener future while simultaneously writing a record-breaking £110 billion cheque to foreign suppliers to keep the lights on today.
Electricity
- Electricity generation from fossil fuels was 98 TWh in 2023, 36% of total UK generation
- UK total electricity generation reached 318 TWh in 2023, up 2% from 2022 driven by renewables growth
- Gas-fired power stations generated 126 TWh in 2023, accounting for 40% of electricity supply
- Coal contributed just 3 TWh to UK electricity in 2023, down 85% from 2022
- Nuclear output was 48 TWh in 2023, 15% of total generation despite station closures
- Interconnector imports supplied 22 TWh net to UK grid in 2023, 7% of supply
- Peak electricity demand was 52.5 GW on 31 December 2022 during cold snap
- UK electricity consumption totalled 300 TWh in 2023, flat from previous year
- Domestic sector used 84 TWh of electricity in 2023, 28% of total demand
- Industrial electricity consumption was 79 TWh in 2023, down 3% amid energy crisis
- National Grid ESO balanced 99.99% of half-hourly settlement periods in 2023
- Installed electricity generation capacity was 90 GW at end-2023, up 5 GW from 2022
- Wind generated 82 TWh in 2023, 26% of UK electricity
- Solar PV output reached 13.9 TWh in 2023, record high up 20%
- Hydroelectricity produced 5.2 TWh in 2023, stable contribution
- Wholesale electricity price averaged £112/MWh in 2023, down from £207 in 2022
- Pumped storage output was 2.6 TWh in 2023, aiding grid flexibility
- Electricity transmission losses were 3.5% of generated output in 2023
- UK grid frequency maintained within 49.5-50.5 Hz for 99.8% of 2023
- Offshore wind capacity connected was 14 GW at end-2023
- Onshore wind generated 23 TWh in 2023, 7% of total electricity
- CCGT plants operated at 32% load factor in 2023
- Electricity exports via interconnectors totalled 24 TWh in 2023
- Smart meter installations reached 31 million electricity meters by end-2023, 67% of homes
- Battery storage capacity grew to 3 GW by end-2023, up 50%
- Demand-side response provided 2 GW flexibility in 2023 peaks
- UK electricity network investment totalled £5.2 billion in 2023 by DNOs and TSOs
- OCGT generation was 1.2 TWh in 2023, mainly for peaking
Electricity Interpretation
While the UK's grid still dances to gas's tune at 40%, the ghosts of coal generation are being rapidly exorcised, replaced by a growing chorus of wind turbines that now generate more electricity than all fossil fuels combined.
Emissions
- UK CO2 emissions from energy supply were 296 MtCO2 in 2022, down 8% from 2021
- Total UK greenhouse gas emissions fell 5% to 417 MtCO2e in 2022
- Energy sector CO2 intensity dropped to 140 gCO2/kWh in 2022 from 160 g/kWh
- Transport emissions were 122 MtCO2 in 2022, 27% of national total
- Power sector emissions halved to 45 MtCO2 in 2022 from coal phase-out
- Buildings emitted 110 MtCO2 in 2022, mostly gas heating
- UK methane emissions from oil/gas fell 15% to 2.5 MtCH4e in 2022
- Industry CO2 output was 70 MtCO2 in 2022, down 4%
- Net zero pathway projects 78% emissions cut by 2030 from 2020 levels
- Carbon Capture and Storage captured 0 MtCO2 commercially in 2022, pilots only
- UK ETS covered 35% of emissions in 2023, cap at 156 MtCO2
- Road transport CO2 per vehicle-km improved 2% to 120 g/km in 2022
- Electricity grid carbon intensity averaged 158 gCO2/kWh in 2022, lowest ever
- F-gas emissions rose 3% to 15 MtCO2e in 2022 from refrigeration
- Offshore oil/gas flaring emitted 1.2 MtCO2 in 2022, down 20%
- UK peatland restoration to cut 10 MtCO2/year by 2050 targeted
- Aviation emissions within UK were 9 MtCO2 in 2022, domestic flights
- Hydrogen blending trials reduced CO2 by 2% in test networks 2022
- UK emissions 47% below 1990 levels in 2022
- NOx emissions from power plants fell 10% to 20 kt in 2022
- SO2 from energy sector was 5 kt in 2022, near elimination
Emissions Interpretation
While Britain is commendably cleaning its electricity grid, it's still struggling to wean its homes, cars, and industry off fossil fuels with the urgency required to hit its ambitious net zero targets.
Fossil Fuels
- In 2022, UK crude oil production averaged 0.9 million barrels per day, down 8.4% from 2021 due to field declines in the North Sea
- UK natural gas production in 2022 was 27.4 billion cubic metres (bcm), representing a 22% decrease from 2021 amid maturing North Sea fields
- The UK produced 34.1 million tonnes of oil equivalent (Mtoe) from indigenous fossil fuels in 2022, accounting for 40% of primary energy supply
- North Sea oil reserves remaining as of end-2022 were estimated at 2.5 billion barrels, sufficient for about 8 years at current production rates
- UK gas imports via pipeline reached 50.7 bcm in 2022, primarily from Norway (46%)
- LNG imports to the UK totalled 15.6 bcm in 2022, up 42% from 2021, mainly from the US and Qatar
- Coal production in the UK was negligible in 2022 at under 0.1 Mtoe, with all coal for electricity imported
- UK oil refinery throughput averaged 1.2 million barrels per day in 2022, processing 80% imported crude
- Proven and probable oil reserves in the UKCS stood at 3.2 billion barrels at end-2022
- Gas production from the East Irish Sea fields contributed 1.2 bcm in 2022, down 15% year-on-year
- UK exported 11.5 bcm of natural gas in 2022, mostly to Europe via interconnectors
- Coal imports for electricity generation were 5.2 million tonnes in 2022, up from 2021 due to gas price spikes
- Brent crude oil price averaged $99 per barrel in 2022, impacting UK fuel costs significantly
- UK oil consumption was 1.6 million barrels per day in 2022, 70% met by imports
- Natural gas storage capacity in the UK was 3.3 bcm at end-2022, with Rough facility providing 70%
- UKCS decommissioning costs estimated at £50 billion over next 30 years as of 2022
- Peak gas production day in 2022 was 380 million cubic metres on 7 September
- UK coal mine output was 0.05 million tonnes in 2022, solely from opencast operations
- Oil pipelines transported 45 million tonnes in 2022 across the UK network
- Gas production peaked at 29.8 bcm in 2004, contrasting 2022's 27.4 bcm decline trajectory
- UK imported 85% of its coal needs in 2022, totaling 14.8 million tonnes
- Condensate production was 4.2 million tonnes in 2022 from North Sea fields
- UK gas exports to Europe via BBL pipeline averaged 5 bcm annually pre-2022
- Final UK coal-fired power station Ratcliffe-on-Soar closed in September 2024, ending 150 years of coal generation
- UK oil exports were 0.4 million barrels per day in 2022, mainly to EU refineries
- Ninian pipeline system carried 12 million tonnes of oil in 2022
- UK gas consumption in power sector was 70 TWh in 2022, 35% of total gas use
- Forties pipeline throughput was 22 million tonnes of crude in 2022
- UKCS investment in exploration was £1.2 billion in 2022, down 10% from prior year
- Total UK fossil fuel production share of energy mix was 39% in 2022
Fossil Fuels Interpretation
The UK's North Sea fields are on a farewell tour, with production waning and imports swelling, effectively trading its historic energy independence for a rather expensive lease from Norway.
Renewables
- Total renewables generation hit 137 TWh in 2023, 43% of electricity supply
- Offshore wind generated 59 TWh in 2023, record 19% of UK electricity
- Installed offshore wind capacity reached 14.7 GW by end-2023, up 1.4 GW
- Onshore wind capacity was 15 GW at end-2023, generating 23 TWh annually
- Solar PV installed capacity totalled 15.5 GW by end-2023, output 13.9 TWh
- Biomass power generation was 36 TWh in 2023, 11% of renewables mix
- UK bioenergy capacity was 6.2 GW at end-2023, including dedicated plants
- Renewable electricity capacity grew 12% to 42 GW in 2023
- Wave and tidal generation contributed 0.02 TWh in 2023, from pilot projects
- UK has over 11,000 MW of consented onshore wind capacity awaiting construction as of 2023
- Round 4 offshore wind leasing awarded 4 GW capacity in 2023 auctions
- CfD scheme supported 7.7 GW renewables capacity by end-2023
- UK solar deployment added 1.6 GW in 2023, largest annual increase
- Anaerobic digestion biogas plants produced 7 TWh equivalent in 2023
- Floating offshore wind pilots reached 30 MW operational in 2023
- Green hydrogen projects funded £140 million in 2023 under £1bn cluster plan
- UK has 1,200 MW of operational energy-from-waste capacity in 2023
- Sewage gas generation was 1.5 TWh in 2023 from 300+ sites
- Landfill gas plants generated 1.8 TWh electricity in 2023, declining trend
- UK renewable heat incentive supported 150,000 installations by 2023
- Onshore wind load factor averaged 27% in 2023, offshore 38%
- Solar PV capacity factor was 11% in 2023, improved by bifacial tech
- Biomass co-firing phased out completely in 2023 from coal conversions
- UK renewable electricity share hit 47% in 2023, up from 41% in 2022
Renewables Interpretation
The UK’s energy transition is now a full-blown sprint, with renewables generating nearly half our power, offshore wind leading the charge, and an arsenal of consented projects queued up like impatient commuters waiting for the green light.
Sources & References
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- Reference 6LOWCARBONCONTRACTSlowcarboncontracts.ukVisit source
- Reference 7ONSons.gov.ukVisit source