Clean Energy Economy Generates £32.2 Billion in Indirect Turnover as UK Embraces Low-Carbon Transition

The UK’s low-carbon and renewable energy economy generated an estimated £32.2 billion in indirect turnover during 2024, supporting approximately 149,900 full-time equivalent jobs across the broader economy, according to fresh figures from the Office for National Statistics. These indirect estimates reveal the knock-on economic impact of direct renewable energy activity—showing how investment and employment in wind farms, solar installations and other clean energy projects create demand throughout the supply chain and wider economy.

Indirect economic activity captures the secondary effects of direct renewable energy operations. When renewable energy companies purchase materials, services and equipment, they create demand for suppliers. When workers in the sector spend their wages, they support retail, hospitality and other service businesses. These ripple effects—what economists call indirect activity—add substantially to the direct contribution of the clean energy industry itself.

The Office for National Statistics defines the low-carbon and renewable energy economy (LCREE) as activities aimed at producing goods and services for environmental purposes, specifically those designed to reduce greenhouse gas emissions or adapt to climate change. This captures everything from manufacturing wind turbine components and solar panels to installing heating systems and retrofitting buildings for energy efficiency.

Understanding indirect economic impacts has become increasingly important for policymakers assessing the true value of the clean energy transition. The methodology for calculating these figures uses UK input-output analytical tables, which track how money flows between different industries and sectors. This sophisticated approach accounts for both the supply-chain spending of renewable energy companies and the consumer spending of their employees.

The context for these figures is significant. The UK has accelerated its renewable energy capacity expansion substantially over recent years. In 2024, low-carbon renewable sources—wind, solar and hydropower—reached a record high, generating 37 per cent of UK electricity for the first time, overtaking fossil fuels which accounted for 35 per cent. Wind power alone generated 29 per cent of UK electricity in 2024, nearly matching gas generation at 30 per cent.

This energy transition is fundamentally reshaping the UK’s economic geography and labour market. The renewable energy sector is creating employment opportunities across multiple regions. According to energy industry analysis, Great Britain now has over 2,000 supply-chain companies supporting clean energy projects, located in 70 constituencies nationwide. Manufacturing hubs have emerged in areas including Teesside, the Humber, East Anglia, the Moray Firth and South Wales, alongside emerging centres in Northern Ireland.

The £32.2 billion figure for indirect turnover underscores the economic significance of the clean energy transition beyond the directly employed workforce. While direct employment in renewable energy and low-carbon activities represents one economic measure, the indirect figure demonstrates how the sector supports livelihoods across manufacturing, logistics, construction, professional services and countless other industries dependent on renewable energy company spending and employee wages.

Government policy continues to reinforce sector expansion. The lifting of the de facto onshore wind ban in July 2024 is expected to accelerate deployment rates, particularly in England, as part of the government’s clean power by 2030 target. This policy shift removes planning barriers that had constrained onshore wind development, creating conditions for further investment and employment growth.

The renewable energy transition also carries implications for energy security and consumer finances. As the sector expands, the UK becomes less dependent on volatile international gas markets. This long-term energy independence helps insulate consumers and businesses from international price shocks comparable to the energy crisis that began in 2021.

For the UK economy more broadly, the clean energy sector represents a growth opportunity. Total clean electricity generation—combining renewables with nuclear power—reached 73.8 per cent of Great Britain’s electricity in 2024, up from 68.3 per cent in 2023, demonstrating rapid acceleration. As the government pursues its 95 per cent clean power by 2030 target, investment in renewable infrastructure and supply-chain development is expected to increase further, supporting additional indirect economic activity.

These ONS estimates are classified as official statistics in development, reflecting ongoing refinement of measurement methodologies as the clean energy economy expands and matures. The indirect estimates complement direct employment figures, offering a more complete picture of the sector’s economic contribution.

Key Takeaways

• The UK’s low-carbon and renewable energy economy generated £32.2 billion in indirect turnover during 2024, demonstrating substantial economic ripple effects beyond direct renewable energy activities
• Approximately 149,900 full-time equivalent jobs are supported indirectly through supply chains and employee spending
• Indirect economic activity captures secondary effects—supplier purchases, wage spending and related business transactions created by the renewable energy sector
• The rapidly expanding sector is creating employment opportunities across 70 UK constituencies, with particular growth in manufacturing and logistics hubs
• Clean electricity generation reached 73.8 per cent of Great Britain’s electricity in 2024, supporting ongoing sector expansion

What This Means for Kent Residents

For Kent households and workers, the clean energy transition offers practical benefits alongside economic opportunity. The sector’s growth contributes to energy security and helps insulate consumers from international gas price volatility that drove the recent energy crisis. Kent’s ports at Dover and Folkestone increasingly handle renewable energy equipment imports and manufacturing components, supporting logistics employment. The sector also creates skilled apprenticeships and technical roles across the region, whilst lower long-term energy costs benefit households and business operating costs regionally. As onshore wind and solar projects expand across south-east England, particularly following the July 2024 planning policy changes, additional supply-chain opportunities and local indirect economic activity are expected to emerge for Kent’s business community.