Electric Insights – unveiling both sides of Britain’s clean-power transition

Where is Britain’s electricity system heading?

This quarter revealed both sides of Britain’s clean-power transition. On 22 April, zero-carbon sources supplied 98.8% of electricity for half an hour, with gas squeezed to barely more than 1% of the country’s generation. By June, the picture looked very different. Power prices spiked above £500/MWh, the highest wholesale price ever recorded in June, while record heat forced NESO to issue its first ever summertime Electricity Margin Notice. Britain is increasingly capable of running on clean power, but operating that system securely and affordably is a growing challenge.

This Electric Insights report features a Q&A with Will Gardiner, Drax Group CEO, about the latest electricity trends and where the system is heading.

Solar’s growing role in Britain

Britain’s solar sector is growing quickly, with record generation, almost 3 GW of new solar farms under construction and strong growth in rooftop installations. Solar now plays a key role in reducing gas use and meeting daytime electricity demand.

However, solar output falls as evening demand rises, creating price spikes and highlighting the need for more flexibility. As solar generation increases, storage becomes more important to shift power into the evening when electricity is most valuable.

Batteries and other storage technologies must expand alongside solar if Britain wants to reduce reliance on gas-fired power and build a more reliable low-carbon energy system.

Extreme heat puts pressure on the electricity system

Britain’s record-breaking summer heatwaves exposed new challenges for the electricity system, driving wholesale power prices above £500/MWh and prompting the first-ever summertime Electricity Margin Notice. Rising demand for cooling, combined with lower output from some power stations and weak wind generation, tightened electricity supplies and increased pressure on the grid.

Solar helped meet daytime demand, but output fell sharply in the evening when cooling needs remained high. Gas-fired power stations stepped in to balance the system, highlighting the need for greater flexibility, storage and resilient infrastructure as extreme weather becomes more common.

Britain must adapt its energy system to a warmer climate through stronger networks, smarter demand management and increased flexibility, while continuing efforts to limit climate change itself.

Britain’s era of energy system devolution

The power system remains geographically divided, which exacerbates system stress. Wind generation is concentrated in the north while new demand, particularly from data centres and electric vehicles, leans south. The billion dollar question is how to persuade new demand and infrastructure to make use of the renewable energy we produce, rather than worsen congestion and push up bills.

Download the full Q2 Electric Insights report below.

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