The wholesale price of electricity has fallen by a quarter thanks to solar and wind
Gas is now only setting the price of electricity 85% of the time
The grid needs to be improved to meet electricity demand
Credit: Adobe.
Renewable energy sources, such as wind and solar, have cut the price of electricity by a quarter and helped to push expensive gas power plants off the system, according to analysis from the Energy & Climate Intelligence Unit (ECIU).
As a result of having more renewables in the system, electricity is now cheaper than it has been at any time since before the Covid-19 pandemic and the war in Ukraine. Wind in particular has helped cut the wholesale price of electricity to about £25 per megawatt hour (MWh).
For context, electricity hit a peak of £83 per WHw during the first year of the war in Ukraine when gas prices soared.
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By having more wind and solar, the price of electricity is less dependent on the wholesale price of gas and market volatility; gas is now setting the price of electricity 85% of the time, down from almost 100% of the time during the depths of the energy crisis.
While the energy price cap rose by 2% in October, bills would be higher if gas were still setting the price of electricity. Unlike gas-powered stations, renewables have no fuel costs which inevitably cut the overall cost of electricity.
In 2024, electricity was between £73-76 MWh, and the ECIU estimates that the average price of electricity could have been as high as £101 MWh had it not been for wind power.
“People may not realise it, but their bills would be higher today without the increasing role that wind and solar farms running on free sunshine and wind are playing by reducing our dependence on gas power,” said Dr Simon Cran-McGreehin, head of analysis, ECIU.
Continuing, Dr Cran-McGreehin urged the government to invest further in the electricity grid to meet electricity demand, which will in turn make households less reliant on volatile international markets.
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Max joined The Eco Experts as content manager in February 2024 and became deputy editor in 2025. He has written about sustainability issues across numerous industries, including maritime, supply chain, finance, mining, and retail. He has also written extensively for consumer titles like City AM, The Morning Star, and The Daily Express.
In 2020, he covered in detail the International Maritime Organisation’s (IMO) legislation on sulphur emissions and its effects on the global container shipping market as online editor of Port Technology International.
He also explored the initiatives major container ports and terminals have launched in order to ship vital goods across the world without polluting the environment.
Since then, he has reported heavily on the impact made by environmental, social, and governance (ESG) practices on the supply chain of minerals, with a particular focus on rare earth mining in Africa.
As part of this, in 2022 Max visited mines and ports in Angola to hone in on the challenges being faced by one of the world’s biggest producers of rare earth minerals.
His most recent sustainability-related work came much closer to home, as he investigated the eco-challenges faced by independent retailers in the UK, specifically looking at how they can cut emissions and continue to thrive.
Max lives in South London and is an avid reader of books on modern history and ghost stories. He has also recently learned to play the game Mahjong and takes every opportunity to do so. He is also yet to find a sport he doesn’t enjoy watching.
Tamara BirchNewsletter and sponsored content editor
Tamara is a London-based journalist and has written about environmental topics for more than four years. This includes advising small business owners on cost-effective ways, like solar panels and energy-efficient products, to help them become more sustainable.
She has used her journalist and research skills to become highly knowledgeable on sustainable initiatives, issues, and solutions to help consumers do their bit for the environment – all while reducing monthly costs.
In addition to adopting sustainable practices in her personal life, Tamara has worked in the retail B2B space to help independent retailers think about their environmental choices and how they can help improve their business. She now uses this knowledge to help consumers do the same.
Her passion for sustainability and eco-friendly solutions stems from a long obsession with nature and animals and ensuring they feel looked after. In her free time, Tamara enjoys reading fantasy novels, visiting the gym, and going on long walks in new areas.
