Wind power is UK’s main source of power and gas is at its lowest level in a decade

The UK plans a huge wind power development in the coming years to triple current offshore capacity.
It is the first time that UK wind turbines have overtaken gas-fired power stations as the country’s main source of electricity, although they are still a long way from ambitious targets for a clean grid by 2030.

Wind power accounted for 29% of the country’s generation mix last year, with gas down to just a quarter, according to data from the National Energy System Operator.

The UK plans a huge wind power development in the coming years to triple current offshore capacity, with the hope that cheap renewables will provide the vast majority of generation by the start of the next decade. The idea is to cut emissions and lower consumer bills.

The last time gas accounted for such a small share of the country’s generation was in 2013, when coal dominated the system and renewable energy operated at much lower levels. NESO’s data includes storage and electricity imports.
But despite the milestone, more wind and less gas do not necessarily lead to lower power prices. The government’s plans for the country’s energy future include a relatively stable amount of gas capacity, with the expectation that it will be needed much less frequently. The intermittent nature of wind, which now dominates the grid, makes this backup supply necessary.

This week, wind power generation in the U.K. is forecast to see a big shift, falling from around 15 gigawatts to 3 gigawatts, according to Bloomberg models. With falling temperatures set to increase heating demand in the coming days, this could lead to higher power prices.

Running gas plants for less time but still needing them as a backup can sometimes make power prices more expensive.

Under government plans, offshore wind capacity would triple to 50 gigawatts by 2030. This is already increasingly leading to grid congestion, with windier areas cutting generation because power cannot be transported to areas that need it most.

An ongoing review of the electricity market could split the UK into different zones, each with a different price, reflecting the balance between supply and demand and how much space there is on the grid. This review is expected to be complete by early 2025.
Another change last year was that electricity imports overtook nuclear generation as the third largest source of energy.

The UK turned to imports from Europe after closing its last coal plant earlier this year. However, the government has also promised to cut consumer bills, in part by relying less on overseas purchases and more on domestic renewable sources. Bloomberg

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