Best UK Energy Shares 2025

Energy Shares

Discover six of the best UK energy shares to buy in 2025 listed on the LSE. They all benefit from strong investment cases and clear growth strategies to make 2025 a transformative year. DirectorsTalk brings investors the latest news, exclusive interviews with CEOs and insights from equity research analysts that enable investors to make more informed investment decisions.

SAE Renewables (LON:SAE) is the owner of the land, grid connection, Battery Energy Storage Systems, infrastructure and existing power station at the Uskmouth site in Newport, South Wales. SAE also operates the MeyGen project in Scotland – the largest planned tidal stream project in the world.

Quadrise (LON:QED) is an energy technology provider whose solutions enable production of cheaper, cleaner, simpler and safer alternatives to fuel oil and biofuels, proven in real world applications, and in international shipping in particular.

Challenger Energy Company (LON:CEG) is a Caribbean and Atlantic margin focused oil and gas company, with a range of petroleum assets located onshore in Trinidad and Tobago, and Suriname, and offshore in the waters of The Bahamas and Uruguay.

Diversified Energy Company (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids in the United States. The company is a constituent of the FTSE 250 Index on the LSE.

Although Valeura Energy (TSE:VLE) is a Canadian-based upstream oil and gas company, with assets in the Gulf of Thailand and the Thrace Basin of Turkey, it’s an energy company well worth taking a look at.

Drax Group (LON:DRX), trading as Drax, is a power generation business listed on the FTSE250. The principal downstream enterprises are based in the UK and include Drax Power Limited, which runs the biomass fuelled Drax power station, near Selby in North Yorkshire.

SAE Renewables Limited

Quadrise plc

Challenger Energy plc

Diversified Energy Company plc

Valeura Energy Inc.

Drax Group plc

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Diversified Energy announces new Board appointments

Diversified Energy Company has announced that Sandra Stash will step down from its Board of Directors. David Turner will become Senior Independent Director, Kathryn Klaber will chair the Sustainability Committee, and Martin Thomas will join the Audit & Risk Committee.

Diversified Energy delivers strong H1 2025 with Carlyle partnership boost

Diversified Energy Company posted first-half 2025 results in line with expectations, delivering strong production growth, improved financial metrics, and $152 million in adjusted free cash flow

SAE Renewables secures £67.4m financing for flagship AW1 battery storage project

SAE has achieved financial close for its 240MWh AW1 battery storage project at Uskmouth, securing £67.4m in funding. The project is forecast to deliver average annual revenues of £13m and EBITDA of £9m over its first five years, with operations set to begin in Q1 2027.

SAE secures contracts for 240MWh AW1 battery project at Uskmouth

SAE has signed supply and construction agreements for its 240MWh AW1 battery storage project at Uskmouth Sustainable Energy Park, with potential to scale to 480MWh. Canadian Solar will supply the batteries and provide a 15-year service agreement, while Jones Bros will handle construction. A 12-year revenue deal with EDF and a framework for 1.1GWh of future battery supply have also been agreed.

Drax Group delivers stable H1 results and higher dividend

Drax Group plc reported half-year results for the six months to 30 June 2025, highlighting stable adjusted basic EPS of 65.6p and a 12% increase in the interim dividend to 11.6p.

Challenger Energy advances Uruguay seismic plans

Challenger Energy has advanced the environmental permitting for its AREA OFF-1 licence in Uruguay, keeping the project on track for 3D seismic acquisition in the fourth quarter of 2025.

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