25 years of Good Energy

Founded in 1999 by Juliet Davenport, Good Energy celebrated its 25th anniversary this year.

In this article, we look back over the huge shifts that have occured in the energy market in that time, and why we have reasons to be optimistic for the future.

Late 1990s: UK still in its fossil fuel era 

In the late 1990s, the UK’s energy system was still predominantly reliant on fossil fuels, with coal and natural gas being the primary sources of electricity generation.

It was in this period that gas became a major source of electricity generation, going from just 1.5% in 1990 to 37% in 1999, largely taking share from coal which was the dominant source of power in the decade alongside nuclear.  

Meanwhile, renewables were practically non-existant. Just over 2% of all electricity generation came from renewable sources, mostly hydroelectric from power stations that had existed since the 50s and 60s. This made setting up an energy company that promised ‘100% renewable electricity’, as Good Energy’s founder Juliet Davenport did in late 1999, quite an extraordinary idea. 

2000s: The dawn of wind power 

The first commercial wind farm in the UK was at Delabole, in Cornwall. The small set of turbines was first built by the Edwards family on their land way back in 1991, long before wind power was mainstream. But the windfarm was bought by Good Energy in 2002 and repowered with new turbines in 2010.  

It was within this decade that the majority of onshore wind farms popped up around the country, until the Conservative government effectively banned onshore wind in 2015 — a ban which has only recently been lifted.  

The year 2000 saw the UK’s first commercial offshore wind farm in Blyth Harbour. This milestone set the stage for the UK’s leadership in wind power, and together onshore and offshore wind’s share of electricity generation has grown from less than 1% at the turn of the century to 28% last year.  

2008: The Climate Change Act 

The introduction of the Climate Change Act in 2008 was a pivotal moment for the UK’s energy system. This precursor to the country’s net zero target, it set legally binding targets for reducing greenhouse gas emissions to at least 100% lower than a 1990 baseline by 2050.  

2010s: The rise of solar power 

In 2004, Good Energy created the first UK scheme to pay homeowners with solar for the power they generate. This was then supercharged when HomeGen became the blueprint for the launch of the Feed-in Tariff (FIT) scheme in 2010. FIT was a government legislated scheme, which like the Climate Change Act was brought in by then Energy Minister Ed Miliband, who has recently returned to the position. It provided financial incentives for households and businesses to install solar panels, leading to a surge in solar capacity. 

Between its launch in 2010 and closure in 2019, the FIT scheme saw over 850,000 small scale solar installations, with a total capacity of 5 gigawatts — bigger than the UK’s largest single power station. Advances in technology and reductions in the cost of solar panels further accelerated the adoption of solar power which in 2023 produced 4.9% of the UK’s electricity. 

2014: Contracts for Difference (CfD)

The Contracts for Difference (CfD) scheme, introduced in 2014, is a mechanism to create long-term price stability for renewable energy projects, particularly large bits of infrastructure that require lots of up front cost like offshore wind farms. It has been a major driver of offshore wind’s growth since, and this year saw a record £1.5 billion fund to support the construction of new renewable energy projects.  

2022: The energy crisis 

Energy prices were already starting to rise in late 2021, as a fall out from the pandemic. But shockwaves hit energy markets as Russia attacked Ukraine in March 2022. The instability, and Russia’s position as a major exporter of gas across Europe, sent energy prices skyrocketing.

The UK, not a significant importer of Russian gas but uniquely exposed to global gas prices due to the high percentage we still use to produce power and to heat our homes, was hard hit. It was a starkly clear sign that the ever more urgent move away from fossil fuels would not just cut carbon emissions, it would bring down bills and improve energy independence.  

2024: Unblocking onshore wind for clean power 2030 and an end to coal 

Ratcliffe-on-Soar coal power station closed on 30th September 2024, marking the end of coal power generation in the UK. Credit: Toby Smith

This year we have seen the return of a Labour government, entering parliament with an immediate overturn to the ban on onshore wind and a commitment to get to completely clean power by 2030.  

It is an ambitious target, but it is also only part of the picture. Thanks to the growth in renewables and demise of coal power — the last coal power station shut at midnight on 30 September 2024 — most of the UK’s decarbonisation has been led by electricity. Now transport and buildings, namely how we heat them, are the top two contributors to the country’s carbon footprint.  

To achieve net zero by 2050, the country needs to get off gas and petrol. The abundant clean power generation we will see being built, also needs to power how we travel and heat our homes.  

As in the past 25 years of the energy transition, Good Energy will continue helping customers to be a part of a cleaner, greener future. Whether you’re looking for 100% renewable power, solar panels, a heat pump or EV charging solutions, we can provide all you need for a greener home.