As the energy landscape continues to evolve, 2026 is shaping up to be a pivotal year for suppliers, brokers, and consumers alike. Policy decisions, technology advances, and data transparency are converging in ways that will fundamentally reshape how energy is generated, stored, priced, and consumed.
While uncertainty remains in some global markets, the UK energy sector continues to move with intent. Below are the trends I believe will define the year ahead.
Continued Move Toward Net Zero
While the US has reversed course on its net zero ambitions by actively dismantling clean energy policies and promoting fossil fuels, the UK continues to move steadily forward on its commitment to achieve net zero emissions by 2050. I see no reason for this to change in 2026.
The 2050 target has long enjoyed cross party support and provides a stable, long term framework for the industry. This continued momentum is underpinned by several critical factors:
Legally Binding Targets
The UK was the first major economy to commit to legally binding net zero targets. These mandates set a clear decarbonisation trajectory, reinforced by five year carbon budgets that hold successive governments accountable.
Proven Decarbonisation Progress
UK emissions have already fallen by more than 50 percent compared to 1990 levels, and the country has successfully met its first three legally binding carbon budgets.
Renewable Energy Growth
Renewables now account for over 42 percent of the UK’s electricity mix over the past 12 months. At the same time, the UK has made meaningful progress in phasing out coal power.
Policy Follow Through
In October 2025, the government outlined a revised Carbon Budget and Growth Delivery Plan. The independent Climate Change Committee has assessed the plan as within reach, provided the government maintains its current course.
Open Data Empowering the Consumer
Historically, energy suppliers have viewed data as a currency that must be closely guarded due to its intrinsic value. That mindset is changing. Increasingly, suppliers are recognising that opening data up to industry participants and consumers alike can be a win win. I expect this trend to accelerate in 2026.
When data is clean and accessible, more data leads to more accurate insights. Opening that data multiplies its value. It enables consumers to identify the most effective time of use tariffs, allows brokers to deliver deeper and more actionable insight, and supports the industry in maintaining a robust and future ready grid.
This last point is particularly important. The ultimate goal is a more resilient national energy infrastructure that is less exposed to external shocks and better equipped to protect the UK’s energy future. Opening up the ever growing data mountain does not just benefit the market. It empowers consumers to reduce energy bills at a time when that support is most needed.
Bidirectional Use of Batteries
In 2026, battery storage systems will become an increasingly popular choice for both consumers and businesses looking to manage energy costs, enhance independence, and secure backup power.
On the commercial side, batteries will play a growing role as backup solutions when solar and wind generation are unavailable. This is particularly critical for power sensitive operations, including the latest generation of AI data centres, where uninterrupted supply is essential.
Several major players are accelerating this shift. LG Energy Solution has introduced lithium iron phosphate batteries with improved safety and longevity. QuantumScape continues to push solid state battery innovation, offering higher energy density and lower long term costs. Tesla’s expansion into the UK energy market is also helping to raise awareness of the benefits of battery storage.
For both businesses and consumers, falling costs and shorter payback periods could see battery storage surpass solar as the eco solution of choice. The ability to charge batteries during cheaper time of use periods and discharge during peak pricing will continue to drive down energy bills.
The Year of the Flex Deals
There is little doubt that Ofgem would like to see as many consumers as possible move onto flex deals. These tariffs allow suppliers to purchase energy in blocks that better align with real world consumption patterns, strengthening grid resilience in the process.
The transition to Market wide Half Hourly Settlement in 2026 will only accelerate this shift. With MHHS, consumers gain far greater visibility into when and how they use energy, enabling more informed decision making.
One likely outcome of this increased intelligence is greater self generation through renewables. As consumers offset more of their own usage, overall grid demand will fall, reducing system strain and lowering costs. This is one of the clearest examples of a true win win for consumers and the wider energy system.
Nuclear Power Closing the Generation Gap
Nuclear energy will increasingly play a vital role in addressing the UK’s power generation gap in 2026, defined as the shortfall between growing demand and available supply.
Unlike wind and solar, nuclear provides dependable, 24 hour baseload power. As the share of variable renewables continues to rise, the need for stable and dispatchable energy sources becomes even more critical. Nuclear plants can operate continuously and adjust output to follow demand, helping to maintain grid stability.
With fossil fuel reserves facing long term depletion and legally binding climate targets to meet, nuclear offers a secure low carbon solution that reduces reliance on imported fuels. The continued development of Small Modular Reactors and advanced reactor designs will improve efficiency, affordability, and accessibility in the years ahead.
Looking Ahead
Taken together, these trends point to a more data driven, flexible, and resilient UK energy market in 2026. Policy stability, technological innovation, and consumer empowerment are no longer operating in isolation. They are increasingly interconnected.
For those prepared to adapt, the coming year presents real opportunity. For those who do not, the pace of change will continue to accelerate.
