Renewable energy unambiguously reduces UK wholesale power prices
15 hours ago
- #renewable-energy
- #electricity-prices
- #UK-energy
- Renewables (wind and solar) reduce wholesale electricity prices in the UK.
- Analysis of 220 days (Jan-Aug 2025) shows higher renewables share correlates with lower prices.
- A 50% renewables share led to a £73/MWh price, £55 lower than a 20% share.
- Linear regression suggests a 40% price decline with higher renewables, though not perfectly linear.
- Seasonal variations (winter vs. summer) were considered, but renewables still lowered prices monthly.
- January saw the largest price drop (£87/MWh) with increased renewables (20% to 50%).
- Day-ahead prices (20% of wholesale transactions) were used for the analysis.
- The trend holds across months, with May and July showing drops of £58 and £64/MWh.
- Continued renewables expansion is expected to further reduce UK power prices.