Distributed energy plays a crucial role in the UK’s decarbonisation goals, offering rapid deployment and scalability for clean energy adoption. Power purchase agreements (PPAs) enable businesses to benefit without upfront costs, boosting competitiveness. This article explores key trends driving distributed energy adoption in 2025.
Clear Clean Energy Policy Ambitions
In December, Energy Minister Ed Milliband introduced the Government’s Clean Power action plan to achieve net-zero emissions by 2030. Key initiatives include reforming clean power auctions, expanding the electricity grid, accelerating project connections, and revising planning regulations.
The plan targets an increase in solar capacity from 16.6 GW to nearly 47 GW by 2030, requiring an annual addition of 5 GW over the next five years. Investments in solar infrastructure, supported by incentives and grants, are expected to drive demand, with Solar Energy UK anticipating the sector will surpass government targets.
Policy changes are already underway. The National Energy System Operator recently raised the threshold for projects requiring a transmission impact assessment (TIA) from 1MW to 5MW, simplifying grid connections for smaller renewable projects and reducing costly delays.
A Strong Business Case for Onsite Energy
Onsite renewable generation is becoming a game-changer for businesses, with technological advancements making it easier to deploy and monitor. It remains one of the most cost-effective energy solutions, enabling significant financial and carbon savings.
PPAs provide organisations with access to onsite renewable generation without upfront investments or maintenance costs. Businesses adopting onsite renewables can reduce energy costs by up to 30% and enhance resilience while improving compliance with decarbonisation targets and ESG commitments.
Expanding Storage Capacity
Combining distributed energy with battery storage solutions empowers businesses to manage energy costs and reliability effectively. With ongoing price volatility and geopolitical uncertainties, interest in storage solutions is rising.
The Clean Power Action Plan aims to expand UK energy storage from 4.5 GW to 27 GW by removing financial barriers, making small-scale energy storage more accessible.
A Growing Market
The deployment of onsite solar and wind generation, combined with storage, is creating a stable and efficient energy ecosystem. In 2024, over 2 GW of rooftop solar was installed, with further growth expected in 2025.
Since launching AMPYR Distributed Energy in January 2024, the company have invested £30 million in commercial renewable energy projects across various sectors, including stadiums, shopping centres, and industrial complexes, delivering significant savings and energy security.
Accelerating Deployment
Looking to 2025, AMPYR aims to expand distributed energy projects across the UK and Europe. With supportive policies and private investment, the transition to a low-carbon future is accelerating, ensuring energy resilience and cost savings for businesses and communities.
