UK electricity prices have surged to their highest in over two years, as record-low wind generation and heavy reliance on European imports leave the grid struggling to meet demand.
According to Bloomberg, the day-ahead price hit £241.49 per megawatt-hour, with evening peak prices spiking to a staggering £620 per megawatt-hour.
Wind generation, a cornerstone of the UK’s clean power ambitions, averaged just 0.9 gigawatts – the lowest since September 2023.
This highlights the growing challenge of relying on intermittent renewables like wind. When the turbines aren’t turning, the grid must turn to expensive fossil fuel generators or imported electricity, pushing costs sky-high.
The UK has been importing record levels of power from Europe to keep the lights on.
France’s nuclear fleet – operating at its highest capacity in five years – has been a lifeline, supplying critical power via cross-channel interconnectors. However, the heavy dependence on imports raises questions about energy security and price volatility.
The surge comes as temperatures and heating demand return to seasonal norms following a brief cold snap, putting further pressure on the grid.
In Germany, wind levels are expected to rise slightly, providing some relief and helping to avoid similar price spikes says Bloomberg modelling.
The situation underscores the need for the UK to address renewable intermittency, either through faster deployment of energy storage or bolstering back-up generation – otherwise price shocks could become more frequent, jeopardising the push for clean power by 2030.
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