UK energy security: building resilience today while preparing for tomorrow

Our UK energy, resources and industrials leader Daniel Grosvenor explains the balancing act needed to strengthen energy security now and build a sustainable energy future.

Energy security, our uninterrupted access to affordable energy, has never been more central to our national conversation. 

Global turbulence and the future energy demands of AI are turning it into a defining issue for our age. 

One reason for this heightened focus on energy is the potential risk to parts of the UK’s supply. 

75% of the UK’s energy comes from fossil fuels, largely imported from neighbouring countries and partners.

While the source of these fuels is diverse, our reliance on imports leaves us exposed to the volatility of international markets. Price shocks and physical shortages can send ripples through entire networks, impacting everything from logistics costs to the availability of critical materials deep within our supply chains.

Companies of all shapes and sizes can be impacted through higher logistics costs, supplier price increases and broader inflationary pressures, often with limited visibility of the true impact across their supply chains.

All of this makes the prize for bolstering UK energy security very clear.

Increasing energy independence – more reliance on homegrown energy – would shield the UK more from volatile global markets, providing valuable resilience. Such resilience could be the foundation needed to foster greater innovation, create jobs and boost national confidence. 

There is a clear pathway to strengthening UK energy security and independence: accelerating the transition to a more electrified, cleaner economy.

This means using electricity to heat our homes, move around and power industry, using homegrown energy. With domestically produced, low-carbon and renewable energy sources providing over two-thirds of our electricity in 2025, it’s clear that progress is being made.

Deloitte is proud to support this shift from ambition to delivery.

For example, we are working alongside clients like Scotia Gas Network (SGN), using AI to model transition pathways for SGN’s domestic and commercial customers, supporting the company’s work towards decarbonising heating.

In addition, we are supporting large-scale projects that can strengthen UK industrial capability and are designed to provide abundant clean electricity in future. This includes the partnership between Great British Energy-Nuclear and Rolls-Royce SMR, now building the UK’s first small modular reactors (SMRs) at Gwyndod Power Station in Anglesey.

To enable SMR development and help build its UK supply chain, we’ve also worked with the Department for Energy Security and Net Zero, Agilia Infrastructure Partners and the National Wealth Fund to find an innovative finance solution for this low-carbon technology.

These projects highlight that transitioning our energy supply demands robust and connected infrastructure: a strengthened electricity grid, enhanced interconnectors, advanced batteries and greater system flexibility.

These will not be quick or cheap builds. It will take continued support and momentum across the whole system, moving beyond individual technologies to envision and construct a truly integrated, next-generation energy system.

Businesses cannot afford to wait while we champion this long-term vision.

For the next decade at least, they will need to monitor energy price and security closely.

At the same time, they can use periods of instability to review and test their supply chain and energy resilience, preparing for any future disruptions by:

• Exploring supply-chain dependencies for energy‑critical inputs, including which inputs or suppliers are non‑substitutable in the short term and understanding how easily they switch suppliers or rebalance production; being ready to respond fast, which includes training leadership and workforce to operate under constrained energy or supply conditions.
• Building resilience into day-to-day operations, mapping any single points of failure across supply and infrastructure and assessing supplier resilience to energy disruption.
• Exploring behind-the-meter energy solutions, such as onsite generation and storage, to strengthen business energy security and price stability.

Organisations that are prepared and able to respond decisively today will be best placed to thrive through potential energy shocks, understand their extended dependencies and build flexibility into how they operate.

The path ahead demands both urgency and foresight. 

The future is bright, but only if we navigate the present with determined action.