Britain’s electricity demand has risen for the second year in a row after two decades of decline, marking a key turning point as electric vehicles, heat pumps and AI data centers usher in a new era of electrification.
Preliminary figures for 2025 show electricity consumption rose 3 percent, the fastest annual increase since 2001, according to analysis by Imperial College London for Drax Electric Insights. It is the first time since 2002-2003 that the UK has recorded two years of demand growth in a row.
Electricity consumption reached an estimated 273 terawatt hours (TWh) this year, up from 266 TWh in 2024 and 262 TWh in 2023. Demand peaked at 347 TWh in 2005 before steadily declining as appliances became more efficient, heavy industry declined and parts of the economy deindustrialized.
This long-term trend now appears to have reversed.
“After 20 years of falling demand, we have reached a tipping point,” said Iain Staffell, associate professor of sustainable energy at Imperial College and lead author of the Electric Insights analysis. “Electric vehicles, heat pumps and the data centers that power AI are now driving up electricity demand.”
The increase reflects rapid electrification in transport, heating and digital infrastructure. Heat pump installations increased by around 20 percent in 2025, while electric vehicle sales increased by 28 percent, with about one in three new cars sold now electric. The power demand of data centers, driven by artificial intelligence, is also increasing. It is estimated to have doubled since 2020 and now accounts for 3 to 4 percent of UK electricity consumption. Forecasts suggest it could exceed 10 percent within a decade.
The Committee on Climate Change has previously warned that electricity demand will need to at least double by 2050 if the UK is to meet its decarbonisation targets. This scenario underpins the government’s plans to expand generation capacity and modernize the national grid, which will cost tens of billions of pounds.
Crucially, the analysis shows that the additional demand in 2025 was fully met by cleaner electricity. Renewable energy generation rose sharply, led by a 35 percent increase in solar production following the sunniest year on record and the connection of new solar farms. Solar still accounted for just 7 percent of the total electricity mix, but wind remained the largest single source at 31 percent for the second year in a row.
Gas generation provided 28 percent of electricity, while nuclear power production fell to just 12 percent – the lowest share since 1980 – after extended maintenance outages and unplanned shutdowns of aging reactors.
“At the same time as growth, our electricity system has become cleaner,” said Staffell. “Renewable energies covered all additional grid needs.”
Following the final closure of coal-fired power plants in 2024, CO2 emissions from electricity generation fell to their lowest level since 1938. However, the cost impact was less positive. Wholesale electricity prices rose 12 percent over the year, driven by higher gas prices and a sharp increase in carbon costs.
The data underlines a fundamental shift in the UK’s energy system: electricity demand is rising again – not because of inefficiency, but because electricity is replacing fossil fuels across the economy. The challenge now is whether generation, grids and storage can scale quickly enough to keep up without dramatically increasing costs for households and businesses.
