Energy in 2050
Building a UK net-zero future
Planning for a scenario 26 years from now is tough, but essential
The UK has set a challenging target to be net zero by 2050. From the c-suite to consumers it’s a responsibility we share.
Achieving the UK’s targets depends on people, organisations and sectors that don’t usually collaborate coming together to figure out the joint action that’s needed.
So, as well as supporting our clients with their energy-related ambitions, we’re exploring the views of those in the sector with the biggest part to play in making progress.
Earlier this year (2024) we asked stakeholders including UK businesses and government organisations the all-important question ‘how do we accelerate the energy transition?’
Since receiving responses, we’ve shared them to keep everyone in the picture. Think of it as one big conversation about where we are now, and how we get to where we want to be.
What could a 2050 UK energy system look like?
For some inspiration on the journey, we’ve also created a possible view of the new, clean energy system the UK could have in 2050. Far from a head-in-the-clouds vision, it’s based on government targets and industry forecasts.
Our survey said… we need each other
Building a more sustainable world is a team game. The puzzle pieces have to fit together. So, the more we all know about the UK’s ambitions, challenges and plans for creating and using cleaner energy, the better.
“The UK’s commitment to achieve net zero by 2050 was set five years ago,” says Netti Farkas Mills, senior insight manager for energy, resources and industrials at Deloitte, “and while progress is being made, more collective focus is needed."
To help put everyone in the picture, Deloitte conducted two surveys: one with energy companies and the other with business consumers. We asked respondents what they need from each other, investors, the UK Government and supply chains to accelerate their role in the UK energy transition.
Reflecting on the survey results, we found that the market is talking about the same few issues – developing green skills, strengthening supply chains, evolving energy independence and creating demand for low-carbon technologies.
Interestingly, whilst most companies in the survey believe the UK will meet its 2050 target, fewer are confident of hitting the interim milestones to get us to net zero.
“Repeatedly, when considering survey questions about how to make change happen, respondents called out for help from one another – whether that’s through collaboration, co-investment, guidance from government or support from peers,” continues Netti.
“We hope this insight to gives more business leaders, policymakers, investors and others confidence to take the necessary steps.”
"We can’t wait for the perfect conditions for change. But we can better understand each other."
Netti Farkas Mills, Senior Insight Manager for Energy, Resources & Industrials
As our 2050 video shows, we need a wide range of clean energy sources to get to net zero. We’re proud to have the opportunity to support clients’ ambitions that are contributing to progress on the UK’s net-zero journey, with impacts that are benefitting their customers and stakeholders.
The Offshore Wind Industry Council: boosting wind power
The Offshore Wind Industry Council (OWIC) was established in May 2013 to drive the development of the offshore wind sector in the UK. OWIC is working to realise the Government's updated ambition of 60GW of offshore wind by 2030.
Generating enough offshore wind power is an essential part of the country’s path to net zero, not to mention the key to unlock tens of thousands of skilled jobs.
While the UK has been a global industry leader in the industry for more than a decade, a complex policy and legislative landscape and multiple pressures on our marine environment are making it difficult to secure the necessary consents, build offshore, and send power to the grid.
Working together with OWIC, a team from Deloitte, alongside Aeos Consulting, supported its Policy and Legislative Barriers to Offshore Wind Consenting report (May 2024), aimed at removing barriers – real or perceived – to progress.
“The report highlights that there is a misalignment of the system architecture required to deliver offshore wind at the pace required to achieve net zero targets,” says Deloitte assistant director, Liz Wells.
“At the moment, the four pillars crucial to underpinning the system architecture are unable to provide a firm foundation to deliver offshore wind. The four pillars crucial to underpinning the system architecture need to be realigned to provide a firmer foundation to deliver more offshore wind, even faster.”
Specifically, these pillars are marine spatial planning, seabed leasing, planning and delivery of the electricity grid, and the relevant financial support mechanisms.
Based on consultation with stakeholders, including policymakers and industry experts, and expert analysis of policy and legislative practice, it sets out recommendations to improve the system.
“The recommendations and analysis seek to tweak the existing system architecture, rather than change them wholesale,” Liz continues.
Now, they are being used by OWIC and others to inform a dialogue with industry and government officials to reduce barriers to consenting for offshore wind technologies.
“More broadly, we’re applying and deepening this insight in our work with clients,” Liz concludes, “and using our experience to secure planning consent, licenses and permits needed to make an impact in the market.”
EDF Energy: boosting clean, affordable energy
EDF Energy is the UK’s largest low-carbon electricity producer. Its purpose is to help Britain to achieve net zero in an affordable, secure and responsible way.
In 2020, it made a commitment to help the UK achieve net-zero emissions by 2050. Its plan to help Britain towards this goal includes investments in a wide range of low-carbon options – from renewables and storage to electric transport and heat pumps.
In 2023, a team from Deloitte began supporting its acquisition of solar panel and battery installer, Contact Solar, which was announced in 2024.
“Acting as EDF Energy’s advisor for the acquisition, specialists from Deloitte’s Financial Advisory practice supported EDF with lead advisory, financial, tax and IT due diligence services as well as sales and purchase agreement (SPA) support,” says Charlie Smith, a director at Deloitte.
The team worked routinely with EDF’s senior management and steering committee to, for example, highlight value considerations and assist with having the acquisition approved.
With solar panels estimated by EDF to reduce electricity consumption by up to 74% in each home, take-up is predicted to rise steeply between now and 2030. The investment is designed to help meet this demand.
“EDF is transforming its business,” Charlie continues. “This acquisition was just one part of a much wider strategy to reduce emissions, in this case by enabling its customers to transition to services that create low carbon or net zero homes.
“It was great to work on an important deal that supports a company with the ability to drive the energy transition and continue its exponential growth, a deal that will ultimately enable more people to achieve their own net zero ambitions,” Charlie concludes.
“It is not a choice between cash or carbon: Britain deserves secure, affordable energy while achieving Net Zero.”
Simone Rossi, EDF Energy CEO
