British power prices are increasingly independent from gas

British power prices are becoming less dependent on gas due to the expansion of the Contracts for Difference (CfD) scheme and increased renewable energy generation. Currently, 15% of generation is de-linked from gas prices, a figure forecast to rise to 36% by 2030. High wind and solar output in early 2026 led to record lows in gas share, including a grid low of 1.2% on April 22, 2026, helping to stabilize prices during a period of geopolitical conflict and fuel cost spikes.

• Approximately 15% of British power generation is currently decoupled from gas power prices, primarily due to 10 GW of renewable capacity under the Contracts for Difference (CfD) scheme. This represents an increase from 6.1% in 2019.
• The proportion of power generation priced independently of gas is forecast to reach 36% by 2030. This growth is supported by the AR7 auction in late 2025, which included 36 wind farms (9.7 GW) and 128 solar farms (4.9 GW), and the AR8 auction scheduled for summer 2026.
• Renewable energy deployment is lowering wholesale power prices by displacing gas. In 2025, hours where gas accounted for less than 20% of the electricity mix had average prices of £60/MWh, whereas hours where gas exceeded 50% of the mix averaged £130/MWh.
• In early 2026, record renewable generation significantly reduced gas reliance during a period of price volatility. Wind power provided a record 42% of generation in March 2026, and gas share fell to 19% in April 2026. On April 22, the gas share of the grid reached a historic low of 1.2%.

APA

Mayo, F. (2026). British power prices are increasingly independent from gas. Ember. https://ember-energy.org/app/uploads/2026/05/Report-PDF-British-power-prices-are-increasingly-independent-from-gas.pdf

Chicago

Mayo, Frankie. British power prices are increasingly independent from gas. Ember, 2026. https://ember-energy.org/app/uploads/2026/05/Report-PDF-British-power-prices-are-increasingly-independent-from-gas.pdf.

Wikipedia

{{cite report |last1=Mayo |first1=Frankie |title=British power prices are increasingly independent from gas |publisher=Ember |date=13 May 2026 |url=https://ember-energy.org/app/uploads/2026/05/Report-PDF-British-power-prices-are-increasingly-independent-from-gas.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mayo2026british, author = {Mayo, Frankie}, title = {{British power prices are increasingly independent from gas}}, institution = {Ember}, year = {2026}, month = may, url = {https://ember-energy.org/app/uploads/2026/05/Report-PDF-British-power-prices-are-increasingly-independent-from-gas.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }