Energy from replenishable sources powering modern economies
The UK has announced the start of work on three small modular reactors with Rolls-Royce, aiming for operation by the mid-2030s. Meanwhile, record solar and wind generation is boosting renewable capacity, reducing reliance on fossil fuels amid global energy market volatility driven by geopolitical tensions.
Since the Iran war began in February 2026, disruptions in the Strait of Hormuz have driven global fossil fuel prices higher and exposed vulnerabilities in energy supply. Europe is accelerating plans to reduce fossil fuel dependence, while China has solidified its dominance in renewable energy manufacturing, exporting record volumes of solar panels, batteries, and electric vehicles. This shift is reshaping global energy geopolitics.
The UK government is preparing to increase the electricity generator levy and overhaul market rules to reduce reliance on gas prices. These measures aim to shield consumers from volatile energy costs driven by global conflicts and rising renewable capacity, with consultations expected soon.
The UK government argues that a decentralised grid of wind, solar and storage strengthens national security by reducing reliance on large fossil fuel plants and vulnerable interconnectors, while stressing resilience against cyber and physical threats. Ministers point to Ukraine lessons and ongoing undersea-cable protections as proof of progress.
The system operator has offered grid connection dates to more than 700 shovel-ready clean energy projects, totaling about 37 gigawatts, as Britain advances its 2030 net-zero target. Reforms replace a bottleneck caused by speculative projects, with stricter criteria to connect and deliver faster deployment.
The Crown Estate has posted a drop in revenue account profit to £487m for the year, down from £1.1bn, with most of the decline tied to fading offshore wind option fees as wind farm projects move into construction. Net asset value, however, rose to £16.7bn amid higher property values. Marine profits rose to £175m, while real estate and development profits increased to £258m.