Andrew King, Founder of SGT
I often see the energy landscape like a chessboard – each move is influenced by geopolitical tension, market forces, and consumer behaviour. The big question as we step into 2025 is this: How can we thrive in a market that feels like it’s changing its rules every day?
Let’s break it down simply and look at what’s likely coming and how businesses and consumers can stay ahead.
Geopolitics: the elephant in the room
The ongoing conflict between Russia and Ukraine continues to disrupt traditional energy supply chains. Couple this with unrest in the Middle East, and the result is a volatile mix that keeps energy prices dancing unpredictably. While 2024 saw some stabilisation, 2025 promises no relief from the global tug-of-war.
Why does this matter? Well, when large supply chains are disrupted, smaller, local markets feel the pinch. Businesses face increased costs, and consumers pay higher utility bills.
But here's the silver lining: volatility creates opportunity. It forces innovation, and those who adapt will thrive. Think of it like the stock market – uncertainty doesn’t stop trading; it makes it more strategic.
The UK’s winning strategy: diversify, simplify, innovate
The UK has already started hedging its bets against global shocks. The government is actively working to diversify energy sources, moving beyond traditional fossil fuels into renewables and nuclear energy. This isn’t just an environmental move – it’s a strategic one.
Expect the focus in 2025 to be on:
Onshore wind and solar projects : Renewable energy isn’t a buzzword anymore; it’s a business necessity.
Nuclear power : While controversial, nuclear energy offers a stable and reliable alternative to volatile gas markets.
Hydrogen initiatives : Particularly green hydrogen, which is expected to play a growing role in industrial and transport sectors.
For businesses, this means more chances to align with sustainability goals while reducing exposure to unpredictable energy costs.
The smart home revolution: consumers taking control
Now, let’s talk about the everyday consumer. In 2025, we’ll see a big push toward energy-efficient solutions. The reason is simple: control what you can control .
Smart meters, time-of-use tariffs, and connected home technologies are becoming the norm. Imagine being able to set your dishwasher to run only when energy prices drop or having your heating adjust automatically based on weather forecasts.
For brokers like me, this is an exciting trend. Educating clients on the benefits of these tools not only saves them money but builds trust. People want solutions, not just services, and those of us who can deliver both will come out on top.
Demand-side management: the game-changer
The days of just producing more energy to meet demand are over. In 2025, the focus will be on using less, more wisely.
Demand-side management programmes will incentivise businesses to shift energy usage to off-peak hours or reduce consumption altogether during high-stress periods. Think about this: a factory that shuts down non-essential equipment during peak hours could save thousands annually.
Energy brokers can play a key role here. It’s not just about finding the cheapest tariff anymore - it’s about working with clients to change how and when they use energy.
What’s in It for you?
So, you’re probably wondering: “Great, but how does all this help me?”
Whether you’re a business owner, a landlord, or a homeowner, here’s your playbook for 2025:
Audit your energy usage : Know where your money is going. Are there inefficiencies? Opportunities to shift usage?
Invest in efficiency : From LED lighting to smart thermostats, small upgrades can lead to big savings.
Diversify energy sources : If you have the option, explore solar panels or community energy schemes.
Work with experts : A knowledgeable energy broker can guide you through this maze, ensuring you’re not just reacting to market changes but leveraging them.
The bottom line
2025 will be a year of challenges, yes – but also a year of opportunities. As energy prices remain volatile, those who adapt and embrace innovation will find themselves not just surviving but thriving.
For businesses, this means making energy efficiency a strategic priority. For consumers, it’s about taking control of your usage and exploring smart technology.
And for brokers like me, the mission is clear: help others navigate the chaos with clarity, confidence, and actionable strategies.
Just remember in an uncertain world, the best strategy is to stay proactive.
So, as we move through 2025, ask yourself: what’s your next move?
This article reflects not just trends, but the mindset needed to thrive. Let’s make 2025 the year we take charge of our energy future together.
SGT is a Buckinghamshire-based business, helping organisations across the UK find commercial energy tariffs that meet their needs while keeping costs low.