Post - Blog
Predictions for 2026
- 16 days ago (2026-01-12)
- Junior Isles
David Sheldrake, Global SVP of Sales360, POWWR
Energy Trading Leaders Summit 2026
- Continued move towards Net Zero
While the US has reversed course on its net zero goals by actively dismantling clean energy policies and promoting fossil fuels, the UK continues to move forwards on its commitment to achieve net-zero emissions by 2050. 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 a number of factors:
- Legally Binding Targets : The UK was the first major economy to sign up to such targets. These 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 coming from renewable sources in the past 12 months. It has done a respectable job a phasing out its reliance on coal power.
- Policy Implementation : The government outlined a revised "Carbon Budget and Growth Delivery Plan" in October 2025, which the independent Climate Change Committee (CCC) has assessed as "within reach," provided the government stays the course.
- Open data empowering the consumer
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, increasingly they are understanding that opening up the data to not only others in the industry, but consumers can be a win-win. I expect this to gather pace in 2026.
As long as the data is clean, more data will always equal more diverse, accurate, and reliable learnings for the industry, so should be encouraged. Further, making this data accessible will only multiply its value. It will become a powerful tool to help consumers 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 for now and the future.
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 up the ever-growing big data mountain will not only ensure this but also empower the consumer to reduce their energy bills at a time when it is most needed.
- Bi-directional use of batteries
In 2026, battery storage systems will be an increasingly popular choice by consumers and businesses alike to manage energy costs, enhance energy independence, and provide backup power. On the commercial side, they will also be used by businesses 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 such as the latest breed of AI data centres, 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.
For businesses and consumers alike, the new breed of solutions with their lower cost and reduced payback time could well surpass solar as the eco solution of choice. After all, being able to charge the battery at cheaper times of use and using it during peak times will only see bills reduce.
- The year of the flex deals
There is no doubt that Ofgem would like as many consumers 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 of consumers. Leading to increased grid resilience.
With the move towards Market-wide Half Hourly Settlements (MHHS) in 2026, the move to flex deals will only accelerate, too. After all, with MHHS, consumers have far greater insight into their energy usage, meaning they know in granular detail what energy they are using, and when.
One of the likely offshoots of this added intelligence is that consumers will use renewables to self-generate energy to offset their home usage. In addition to enhancing grid resilience, this will mean demand on the grid will reduce and, in turn, a reduction in energy costs. It will be a win, win.
- The use of nuclear to close the generation gap
Nuclear power will increasingly play its part in addressing the power generation gap (i.e. the shortfall between energy demand and available supply) 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, 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 for the UK that reduces dependence on imported fuels. The development of Small Modular Reactors (SMRs) and advanced reactor designs will only make nuclear power more efficient, affordable, and accessible, in 2026.