UK Renewable Energy Shield Economy from Gas Price Surge, Delivering £7 Million Daily Savings

Britain’s growing renewable energy base is delivering tangible economic resilience, according to a new analysis by Ember. The report finds that increased deployment of solar PV and wind capacity has materially reduced exposure to volatile gas markets, saving the country an estimated £7 million per day since the onset of the latest Middle East conflict.

Titled “Clean power fortifies Britain against gas price shocks”, the study examines how a shift towards domestically generated renewable electricity has altered the cost dynamics of the UK’s power system. By displacing imported gas, whose pricing has been significantly impacted by geopolitical instability, renewables have acted as a buffer against sharp increases in wholesale electricity costs.

This resilience is underpinned by accelerated capacity expansion in recent years. In response to the 2021 fossil fuel crisis, Britain fast-tracked renewable deployment, surpassing 40GW of installed capacity by 2022. Notably, over a quarter of the country’s total renewable capacity has been added since 2021, signalling a structural shift in the generation mix.

Wind and solar have led this expansion. Over the past five years, the UK has commissioned 7.7GW of new wind capacity and 7.6GW of solar. Of the 137 renewable projects delivered since the last energy crisis, solar accounted for the majority, with 106 installations. Looking ahead, the pipeline remains robust, with 51GW of additional capacity approved, of which solar represents 20.8GW. Recent allocation rounds have reinforced this trajectory, including a record 4.9GW awarded under the latest auction.

Operational data further illustrates the impact of this build-out. In the month following the outbreak of conflict in the Middle East, wind and solar generation increased by 52% compared with the same period in 2021. Over the same timeframe, gas-fired generation declined by 39%. Renewables consequently supplied 40% of electricity demand, significantly outpacing gas, which contributed 23%.

This shift has had direct implications for system costs. While gas prices nearly doubled from £53.58/MWh to £104.64/MWh within weeks, the overall financial impact on the power system was mitigated by reduced reliance on gas generation. Ember estimates that, had gas consumption remained at 2021 levels, Britain would have incurred an additional £7 million per day in import costs.

For energy sector stakeholders, the findings reinforce a clear conclusion: scaling domestic renewable capacity is not only central to decarbonisation, but also a critical lever for managing price volatility and strengthening energy security in an increasingly uncertain geopolitical landscape.