British power prices are increasingly independent from gas

The report finds that British power prices are becoming increasingly independent of gas, with 15% of generation already de-linked via the Contracts for Difference (CfD) scheme. This proportion is forecast to rise to 36% by 2030. The document highlights that high renewable generation, particularly wind and solar, significantly lowers wholesale prices; in 2025, hours where gas was below 20% of the mix averaged £60/MWh, compared to £130/MWh when gas exceeded 50%. Recent data from March and April 2026 shows record wind and solar generation displacing gas during a period of geopolitical conflict and fuel price spikes.

• Approximately 15% of British power generation is currently independent of gas power prices, driven by 10 GW of renewable capacity under the Contracts for Difference (CfD) scheme. This is 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 power reduces wholesale electricity prices by displacing gas. In 2025, hours where gas represented less than 20% of the electricity mix had an average price of £60/MWh, whereas hours where gas exceeded 50% of the mix averaged £130/MWh.
• In early 2026, record renewable generation coincided with a fossil fuel crisis. Wind power provided a record 42% of generation in March 2026, and solar power reached a peak generation record in April 2026, exceeding 15 GW and temporarily supplying 45% of demand.
• The gas share of power generation reached record monthly lows in March (27%) and April (19%) 2026, with a specific historic low of 1.2% on the afternoon of 22 April.

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} }