Government statistics on UK energy trends in Q1 2022 show that the shortfall in gas generation is being filled by cheaper renewables, namely wind and solar, which have increased their share of electricity generation on the same quarter last year.
Commenting on the statistics, Jess Ralston, Senior Analyst at the Energy and Climate Intelligence Unit (ECIU), said: “For every megawatt of renewable power this winter, that’s basically a megawatt less of gas power we have to source and pay for.
“This trend is only set to continue with recently commissioned wind projects four times cheaper than current gas and new farms coming online every year. This will protect us from gas price shocks in the long term particularly as the North Sea is a declining basin and fracking is so unpopular with voters.”
|Shares of electricity generated by fuel main table (%)|
|Change on year before (%)|
|Wind, onshore and offshore||25.2||29.1||+3.9|
Source: Energy Trends, BEIS. https://www.gov.uk/government/statistics/electricity-section-5-energy-trends
Gas prices are currently six times more expensive than last year , adding at least £2,000 to the average household’s annual bill this year . Offshore wind projects online today are over three times cheaper than current gas generation, and the latest round of renewables auctions saw prices that are around five times less than the gas price during the gas crisis.