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Daily report

UK Energy Market Report — 19 August 2026

Today's market focus centres on new heat‑network funding, a gas‑system security consultation, hydrogen capacity‑market evidence, fresh renewables data and a transmission‑cost discount scheme. Global oil tightness and US gas output add pressure to wholesale prices, while UK carbon intensity remains high at 196 gCO2/kWh.

19 August 2026 Generated by TUS trade desk + AI (reason)
Today's key metrics
Carbon intensity forecast
196 gCO2/kWh
Gas generation share
47.3 %
Wind generation share
23.1 %

What we’re watching today

  • Heat Network Efficiency Scheme (HNES) Round 13 opens – a new funding stream for commercial heat contracts.
  • Gas system in transition security‑of‑supply consultation – signals potential future gas price volatility.
  • Capacity Market evidence call on hydrogen to power and interconnectors – early insight into emerging capacity options.
  • Energy Trends: UK renewables – latest generation mix data for planning.
  • Electricity bill discount scheme for transmission network infrastructure – possible transmission cost relief.
  • Warm Homes Loan Scheme lender participation (Phase 1) – financing avenue for energy‑efficiency upgrades.

Headlines and what they mean

Apply for the Heat Network Efficiency Scheme (HNES): Round 13

The Department for Energy Security and Net Zero (DESNZ) has launched Round 13 of the Heat Network Efficiency Scheme, offering up to £30 million in grants for projects that improve heat‑network efficiency. Commercial buyers can apply to secure funding for district‑heating upgrades, potentially reducing heat‑fuel spend and supporting decarbonisation targets. source

Gas system in transition: security of supply

DESNZ’s consultation on the gas system’s transition highlights concerns over supply security as the UK moves away from fossil‑based generation. It invites industry comment on infrastructure resilience, storage needs and the role of imported gas, signalling that future gas contracts may incorporate tighter security clauses. source

Capacity Market: Hydrogen to Power and interconnectors

A call for evidence seeks stakeholder views on incorporating hydrogen generation and new interconnector capacity into the Capacity Market. Early engagement suggests a pathway for hydrogen‑fired plants to earn capacity payments, offering an alternative to traditional gas peakers for large‑scale users. source

Energy Trends: UK renewables

DESNZ’s latest renewables statistics show wind now accounts for 23.1% of generation and biomass 10.2%, with overall renewable output continuing its upward trajectory. The data underlines the growing reliability of clean generation, useful for firms modelling long‑term power procurement. source

Electricity bill discount scheme for transmission network infrastructure

The proposed discount scheme aims to reduce transmission‑network charges for eligible projects, potentially lowering the ancillary cost component of electricity bills. Companies with capital‑intensive transmission upgrades should monitor eligibility criteria as the scheme is refined. source

Warm Homes Loan Scheme: apply to participate as a lender (Phase 1)

Phase 1 of the Warm Homes Loan Scheme invites lenders to fund energy‑efficiency improvements for qualifying households. While targeted at residential customers, the scheme may free up private‑sector capital that could be redirected to commercial retrofits. source

Geopolitics and global markets

Global oil markets remain tight, with distillate stocks sinking and US diesel reserves near 23‑year lows, fuelling a diesel price surge that can ripple into UK transport fuel costs source source. Shipping routes through the Strait of Hormuz stay under scrutiny as a 4‑million‑bpd “shadow oil highway” operates and VLCCs resume movements after a pause, adding geopolitical risk premiums to crude pricing source source. Meanwhile, the United States is on track for record natural‑gas production in 2026 and has increased waterborne shipments from the Gulf Coast, bolstering global LNG supply and tempering European gas price spikes source source.

Recent market reports

23 August 2026

UK Energy Market Report — 23 August 2026

UK commercial buyers face moderate grid carbon intensity at 112 gCO2/kWh, a mixed generation mix with imports at a third and nuclear at a quarter, and fresh data on price trends, solar deployment and a new energy park. Global supply constraints and record clean‑energy spending add further nuance to wholesale pricing.

22 August 2026

UK Energy Market Report — 22 August 2026

Today's market is shaped by fresh DESNZ price data, a new solar PV rollout, a key onshore wind decision and tighter nuclear output amid cooling‑river constraints. Global oil supply signals from Iraq, Saudi Mediterranean shipments and rising crude prices add pressure to wholesale rates, while the grid remains low‑carbon at 61 gCO2/kWh.

21 August 2026

UK Energy Market Report — 21 August 2026

The grid is forecast to run at a moderate carbon intensity of 168 gCO₂/kWh, with gas still supplying just under 40% of generation. DESNZ’s new storage challenge and recent statistical releases point to tighter price dynamics, while geopolitical tensions in the Middle East and a dip in Norwegian output keep wholesale gas and power markets on edge.

20 August 2026

UK Energy Market Report — 20 August 2026

The grid is running on a high‑carbon intensity forecast of 190 gCO₂/kWh, driven by a gas‑heavy generation mix. regulator updates on boiler upgrades, heat‑network efficiency, gas security and hydrogen capacity signal policy focus, while global oil and LNG tightness adds pressure on wholesale prices.

18 August 2026

UK Energy Market Report — 18 August 2026

Road fuel prices have risen, new lender opportunities under the Warm Homes Loan Scheme are opening, and the Capacity Market is seeking hydrogen and interconnector bids. Meanwhile, the government is finalising electricity‑bill discount rules and load‑control licence exemptions, all against a moderate grid carbon intensity of 162 gCO₂/kWh.

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