What the future holds in 2026
19 January 2026
By David Sheldrake, chief revenue officer, POWWR
As we celebrate another successful trip around the sun, thoughts turn to what major changes we may see in how energy is used in buildings and industry. Below are my five best guesses:
- The continued pathway towards Net Zero
The UK continues to move forward on its commitment to achieve net-zero emissions by 2050 and I see no reason for this to change in 2026. After all, the 2050 target has generally enjoyed cross-party support and provides a stable policy framework for all to adhere to. The continued move towards net zero is down to several factors:
- Legally Binding Targets: The UK was the first major economy to sign up to such targets. They mandate a clear, long-term trajectory for decarbonisation, supported by five-year carbon budgets.
- Decarbonisation Progress: The UK has already reduced its emissions by over 50% compared to 1990 levels and has met its first three legally binding carbon budgets.
- Renewable Energy Growth: The UK has seen significant growth in renewables, with over 42% of the electricity mix now coming from renewable sources.
- Policy Implementation: The government outlined a revised “Carbon Budget and Growth Delivery Plan” in October, which the independent Climate Change Committee (CCC) has assessed as “within reach”.
- The move to open data
In the past, energy suppliers have looked at data as being a currency that must be held on to due to its intrinsic value. However, they now understand that opening up the data to not only others in the industry, but customers can be a win-win. I expect this to gather pace in 2026.
Assuming the data is clean, more data will always equal more diverse, accurate, and reliable learnings for the industry. Further, making this data accessible will only multiply its value. It will become a powerful tool to help businesses ensure they are on the most effective time of use tariffs, will help brokers provide more valuable insight, and help the industry maintain a robust and relevant grid.
The latter is a point that must not be overlooked. The end goal of all of this is, of course, to provide a more resilient national energy infrastructure that will be less reliant on external factors and will protect our energy future. Opening data will not only ensure this but also empower businesses to reduce their energy bills at a time when it is most needed.
- A new eco solution of choice
This year, battery storage systems will be an increasingly popular choice for businesses to manage energy costs, enhance energy independence, and provide backup power. They will also be used to serve as backup power for when solar and wind energy are unavailable. Not least because they can eliminate the risk of power interruptions for power sensitive operations, offering peace of mind.
There are some big-name players entering the fray too, which will only lead them to expand their popularity. South Korean giant LG Energy Solution (LGES) has a game-changing lithium iron phosphate (LFP) battery; QuantumScape has innovated solid-state battery technology with higher energy density and lower costs; and EV behemoth Telsa’s move into the UK energy market is promoting the benefits of battery storage.
These new breed of solutions with their lower cost and reduced payback time could well surpass solar as the eco solution of choice in 2026.
- More flexibility than ever
There is no doubt that Ofgem would like as many as possible to move onto flex deals. Doing so would allow suppliers to purchase energy in blocks accordingly to match the time of use needs. Leading to increased grid resilience.
With the move towards Market-wide Half Hourly Settlements (MHHS) in 2026, the transition to flex deals will only accelerate, too. This is because, with MHHS, consumers will have far greater insight into their energy usage, meaning they will know in granular detail what energy they are using, and when.
One of the likely offshoots of this added intelligence is that consumers will increasingly use renewables to self-generate energy to offset their home usage.
- Nuclear will help close the generation gap
Nuclear power will increasingly play its part in addressing the power generation gap in 2026. This is because it provides dependable, 24/7 baseload electricity that complements variable renewable energy sources like wind and solar that are entirely weather dependent.
As the share of variable renewables in the energy mix has increased, the need for stable, dispatchable power sources has also grown. Unlike intermittent sources such as solar and wind, nuclear power plants can run at full capacity uninterrupted, providing a continuous supply of energy that can be adjusted to follow demand. This helps bolster energy security.
With fossil fuel reserves facing long-term depletion concerns and legally binding climate targets to hit, nuclear energy offers a long-term, secure energy source that reduces the UK’s dependence on imported fuels.
