Gas Keeps Grip on UK Power Prices Even as Renewables Rise

Gas-fired power plants set UK electricity prices about two-thirds (~66%) of the time last month, underscoring natural gas’s continued dominance of price-setting. This occurred even as renewable generation grew, indicating that rising renewables have not yet displaced gas’s influence on market pricing and volatility risks tied to gas supply and prices remain material for power markets.

Analysis

Gas-fired power plants set UK electricity prices about two-thirds (~66%) of the time last month, underscoring natural gas’s continued dominance of price-setting. This occurred even as renewable generation grew, indicating that rising renewables have not yet displaced gas’s influence on market pricing and volatility risks tied to gas supply and prices remain material for power markets.