Low wind speeds have caused UK power prices to climb to their highest point in two years. The reliance on wind power, now the UK's primary electricity source, leads to price fluctuations when wind generation falls. The UK's transition to greener energy sources is progressing, but the nation still faces challenges with price stability during periods of low wind power production.
Low wind speeds have driven UK power prices to their highest levels in two years on Tuesday, with forecasts predicting wind generation to plummet to its lowest point since September 2023 on Wednesday, according to Bloomberg models. The day-ahead power price in the UK surged to £241.49 per megawatt-hour (MWh) on Tuesday, while the day-ahead price for peak evening demand skyrocketed to £620.00 per MWh.
With wind now contributing the largest share of UK power generation, periods of low wind speeds routinely lead to price spikes. Wind power recently surpassed natural gas to become the UK's primary source of electricity generation for the first time ever in 2024, the National Energy System Operator (NESO) announced earlier this month. Last year marked a significant milestone, as wind energy accounted for 30% of the total electricity generated, securing its position as the largest source for the first year on record, according to NESO's 2024 electricity review. Furthermore, renewables generated over 50% of Britain's electricity for four consecutive quarters leading up to the third quarter of 2024, averaging 51% throughout the year, as noted by the system operator. In contrast, natural gas averaged 26.3% last year, while nuclear power contributed 14% and solar energy represented 5% of the UK's power generation in 2024.Last year witnessed a historic shift in Britain's electricity system with the closure of the last remaining coal-fired power plant in the country. The Ratcliffe-on-Soar plant shut down at the end of September, marking the end of 142 years of coal-fired electricity generation in the UK. This event solidified Britain's position as the first G7 nation to completely phase out coal. While the UK's power system is transitioning towards greener sources, the country now experiences power price surges during periods of high winter demand when wind generation is typically low. Recent months have seen a surge in electricity prices across many countries in northwest Europe due to declining wind power generation
WIND POWER ENERGY PRICES UK RENEWABLES NATURAL GAS
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