Electric Insights: The headlines from April to June 2024

The new government’s plans for the electricity sector

The general election on 4 July brought in a new government, and with it changes across all areas of policy. The UK’s Labour government plans to decarbonise electricity by 2030 while increasing energy independence. Key strategies include boosting investments in renewable energy, streamlining planning rules to expedite wind and solar projects, and reducing reliance on imported energy.

A central part of the plan is the establishment of Great British Energy, a publicly owned entity focused on renewable power development and navigating regulatory challenges. These changes mark a significant shift toward a cleaner, more self-reliant energy future for the UK.

Wind becomes Britain’s largest electricity source

In 2024, wind power became Britain’s largest electricity source, producing 83 TWh over 12 months, surpassing natural gas, which generated 81 TWh.

As we head into closing out 2024, we’ll likely see fossil fuels relegated to second place as the largest power source for the first time in history. And Britain will become the sixth country in the world powered primarily by wind.

Energy prices and inflation

The energy price crisis has faded from news headlines, but the nation and the economy still feel its effects. While gas prices have now fallen, household bills remain high due to delays in Ofgem's price adjustments.

Ofgem’s price cap is set to increase by 10% in October, and longer-term effects on commodity prices and interest rate rises mean that renewable energy could remain more expensive for years to come.

Britain imports one-fifth of its electricity

Britain’s 9 GW of interconnectors are now importing cheaper power from abroad, whereas last year we were exporting to help France overcome capacity shortages.

Over the last quarter, Britain imported a record 20% of its electricity demand, nearly overtaking gas in the generation mix.