UK Energy Market Report — 16 June 2026

What we’re watching today

• Carbon intensity forecast at 216 gCO2/kWh — high for the UK grid.
• Multiple new government funding rounds for heat pumps and insulation.
• Westermost Rough offshore wind safety zone application under review.

Headlines and what they mean

Westermost Rough Offshore Wind Farm: application for a safety zone, Energy Act 2004

The application for a safety zone around the Westermost Rough offshore wind farm marks a key step in the project’s development, reflecting ongoing momentum in the UK’s offshore wind sector source. This move underscores the government’s commitment to expanding offshore capacity, which will be critical for meeting 2030 decarbonisation targets. For commercial energy buyers, this signals growing renewable supply potential, though short-term grid emissions remain high due to gas dependency.

Heat Pump Ready Programme Round 2: innovation funding competition

The launch of Round 2 of the Heat Pump Ready Programme highlights the government’s push to accelerate the adoption of low-carbon heating solutions source. With funding available for innovation in installation, integration, and system design, this initiative supports the broader electrification of heating. For businesses with thermal loads or hybrid systems, this presents an opportunity to explore future-ready solutions that align with carbon reduction goals and reduce exposure to gas volatility.

Social Housing Decarbonisation Fund: April 2026

The latest release of data on the Social Housing Decarbonisation Fund shows continued progress in retrofitting social properties, with funding allocated to insulation, heat pumps, and energy efficiency upgrades source. This reinforces the government’s focus on hard-to-treat buildings and provides a model for commercial property owners looking to decarbonise older or inefficient assets. The data also highlights regional disparities in readiness, which may inform targeted procurement and energy management strategies.

Great British Insulation Scheme release: June 2026

The latest update on the Great British Insulation Scheme reveals continued uptake in insulation projects, particularly in high-heat-loss properties source. With insulation being one of the most cost-effective decarbonisation measures, this data supports the case for immediate investment in building fabric improvements. For commercial buyers, this is a timely reminder that reducing energy demand through efficiency is a low-risk, high-return strategy, especially when grid carbon intensity remains elevated.

Government backing helps UK’s Rolls-Royce SMR win multibillion-pound Sweden nuclear export contract

The success of Rolls-Royce’s Small Modular Reactor (SMR) in securing a major export deal underscores the UK’s growing role in advanced nuclear technology source. While deployment in the UK remains years away, this achievement signals long-term confidence in nuclear as a low-carbon baseload source. For energy buyers, it reinforces the importance of planning for a future grid with greater nuclear contribution, even as gas remains dominant in the near term.

Sub-national estimates of properties not connected to the gas network 2015-2025

The release of detailed sub-national data on gas network connectivity reveals significant regional variation in the potential for electrification source. Areas with high proportions of off-grid properties are prime candidates for heat pump deployment and energy efficiency upgrades. This data enables businesses to assess location-specific risks and opportunities, particularly for facilities in rural or remote areas where gas supply is unreliable or expensive.

The view from the trade desk

Today’s grid carbon intensity of 216 gCO2/kWh — classified as high — reflects a generation mix dominated by gas (52.3%), with wind (13.9%) and nuclear (13.5%) providing only partial offset. Solar contribution remains minimal at 1.6%. This combination suggests that energy-intensive operations should prioritise shifting load to midday and early evening, when solar output is highest and grid intensity begins to fall. The current mix also highlights the continued importance of demand-side management and efficiency in reducing both cost and emissions.

What to do this week

• Review site-level energy consumption patterns against the current grid carbon intensity forecast to identify opportunities for load shifting.
• Assess the feasibility of insulating or upgrading building fabric, particularly in older or poorly insulated facilities, using data from the Great British Insulation Scheme.
• Explore funding options under the Heat Pump Ready Programme for pilot projects in high-heat-loss or off-grid sites.
• Evaluate the long-term implications of gas network connectivity data for facilities in off-grid or low-connectivity areas.
• Engage with suppliers to review flexibility options, especially for assets with adjustable load profiles — TUS manages 150+ GWh under flex management.

Bottom line

High grid carbon intensity today reflects ongoing gas dependency, despite progress in offshore wind and decarbonisation funding. For UK commercial energy buyers, the priority is to reduce exposure through efficiency, load shifting, and early adoption of low-carbon technologies. The government’s latest data and funding announcements signal a clear direction toward electrification and insulation — actions that deliver both cost and emissions benefits. With 30+ suppliers in the TUS panel and Yolk portal enabling real-time insight, now is the time to act.