In February 2025, electricity prices in the United Kingdom amounted to 143.37 British pounds per megawatt-hour, an increase on the previous month. A record high was reached in August 2022 when day-ahead baseload contracts averaged 363.7 British pounds per megawatt-hour.
Electricity price stabilization in Europe Electricity prices increased in 2024 compared to the previous year, when prices stabilized after the energy supply shortage. Price spikes were driven by the growing wholesale prices of natural gas and coal worldwide, which are among the main sources of power in the region.

… and in the United Kingdom? The United Kingdom was one of the countries with the highest electricity prices worldwide during the energy crisis. Since then, prices have been stabilizing, almost to pre-energy crisis levels. The use of nuclear, wind, and bioenergy for electricity generation has been increasing recently. The fuel types are an alternative to fossil fuels and are part of the country's power generation plans going into the future.

Household electricity prices in the United Kingdom averaged 22.03 euro cents per kilowatt-hour (kWh) in the first half of 2020. Over the past decade, household electricity prices have seen an overall increase, peaking at 22.10 euro cents per kWh in the second half of 2019. On average, the UK pays some of the highest electricity prices in Europe. Annual electricity billsIn 2019, the average annual domestic electricity bill for those with an electricity consumption of up to 3,800 kWh was 608 British pounds. In comparison, those with a consumption of 6,000 kWh paid 837 British pounds. Payment methods also affect electricity bills, with consumers who used prepayment paying the least. In 1970, the overall expenditure on electricity by all end users in the UK amounted to 1.5 billion British pounds. This increased significantly in the following decades and amounted to nearly 38 billion pounds by 2018.

This statistic shows the expenditure on electricity by domestic end users in the United Kingdom (UK) from 1970 to 2018, in million British pounds. It shows that the expenditure on electricity increased significantly over this period, from 645 million British pounds in 1970 to approximately 17.8 billion British pounds in 2018. In the year 2000, the expenditure actually decreased when compared to 1995, but continued to increase in the following years.

This statistic displays the average annual domestic standard electricity bills in England and Wales by prepayment from 2007 to 2018, in British Pounds. Between 2007 and 2018 the average annual prepayment electricity bills in England and Wales have increased by 104 British pounds.

The average annual domestic electricity bill in the United Kingdom saw an overall increase from 2010 to 2022 and boomed in 2023. In this period, households with an annual consumption of 5,100 kilowatt-hours saw bills rise from 539 to 1,152 British pounds, including value-added tax. The household expenditure on electricity in the UK amounted to approximately 26.3 billion current British pounds in 2022. Direct debit payments consistently cheaper In the period under consideration, the annual bill for an electricity consumption of 3,600 kilowatt-hours was consistently more expensive for consumers using standard credit as a method of payment, averaging 959 real British pounds in the latter year. From 2016 onwards, consumers using the prepayment method paid less than standard credit consumers and, in 2022, their bill was the least expensive, at 903 real British pounds. Electricity prices on the rise Household electricity prices in the UK have doubled in the past decade for both consumer groups. Despite the UK government setting a tariff cap to protect consumers, UK’s power market was greatly impacted by the global energy crisis. In the summer of 2022, electricity prices in Great Britain peaked at 363.7 British pounds per megawatt-hour.

Germany, Belgium, and Ireland had some of the highest household electricity prices worldwide, as of June 2024. At the time, German households were charged around 0.39 U.S. dollars per kilowatt-hour, while in Belgium, the price stood at 0.37 U.S. dollars per kilowatt-hour. By comparison, in Qatar, residents paid more than 10 times less. What is behind electricity prices? Electricity prices vary widely across the world and sometimes even within a country itself, depending on factors like infrastructure, geography, and politically determined taxes and levies. For example, in Denmark, Belgium, and Sweden, taxes constitute a significant portion of residential end-user electricity prices. Reliance on fossil fuel imports Meanwhile, thanks to their great crude oil and natural gas production output, countries like Iran, Qatar, and Russia enjoy some of the cheapest electricity prices in the world. Here, the average household pays less than 0.1 U.S. dollars per kilowatt-hour. In contrast, countries heavily reliant on fossil fuel imports for electricity generation are more vulnerable to market price fluctuations. The top importers of natural gas in Europe in 2023 were Germany and Italy, where this energy source constitutes a relevant share of the power mix.

UK Electricity decreased 15.90 GBP/MWh or 15.52% since the beginning of 2025, according to the latest spot benchmarks offered by sellers to buyers priced in megawatt hour (MWh). This dataset includes a chart with historical data for the United Kingdom Electricity Price.

UK Gas decreased 26.27 GBp/Thm or 20.95% since the beginning of 2025, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. UK Natural Gas - values, historical data, forecasts and news - updated on March of 2025.

Spain Electricity decreased 81.27 EUR/MWh or 59.82% since the beginning of 2025, according to the latest spot benchmarks offered by sellers to buyers priced in megawatt hour (MWh). This dataset includes a chart with historical data for Spain Electricity Price.

This statistic shows the weighted average cost of fuel, electricity and gas (WACOF/E/G) of the electricity generation of the energy supplier RWE npower in the United Kingdom (UK) from 2013 to 2018. The average costs per megawatt hour decreased over this period. In 2018, the average cost per megawatt reached 41.93 British pounds.

The average gas price in Great Britain in January 2025 was 123.02 British pence per therm. This was 50 pence higher than the same month the year prior and follows a trend of increasing gas prices. Energy prices in the UK Energy prices in the UK were exceptionally high in 2021-2022 due to an energy supply shortage as a result of lower pipeline supplies from Norway and Russia, as well as reduced LNG imports owing to greater purchases by customers in Asia. Multiple factors such as a lack of gas storage availability and the large share of gas in heating have exacerbated the supply issue in the UK. This led to multiple suppliers announcing bankruptcy, while an upped price cap threatened energy security of numerous households. The United Kingdom has some of the highest household electricity prices worldwide. How is gas used in the UK? According to a 2023 survey conducted by the UK Department for Energy Security and Net Zero, 58 percent of respondents used gas as a heating method during the winter months. On average, household expenditure on energy from gas in the UK stood at some 24.9 billion British pounds in 2023.

This statistic shows the weighted average costs of the domestic electricity supply (WACOE) of United Kingdom (UK) based energy supplier Centrica from 2010 to 2018, in British pounds per megawatt hour. The average costs amounted to negative 53.8 British pounds per megawatt hour in 2018.

As of the fourth quarter of 2024, oil prices in the United Kingdom stood at 74 dollars per barrel, with prices expected to rise to 76.6 dollars a barrel in early 2025, before gradually falling in subsequent quarters.

The East of England accounted for the highest average household electricity consumption in Great Britain in 2022. That year, it added up to 3,720 kilowatt-hours per household. In comparison, households in the North East of England had the lowest average consumption, at 2,906 kilowatt-hours per household. End user consumption of electricity in the UK Despite continual annual declines in consumption since 2005, households have remained the largest electricity end-users in the UK since 2005. In 2020, amidst lockdown measures following the coronavirus outbreak, the gap between domestic and industrial consumption grew even wider. In 2022, domestic electricity consumption in the UK amounted to 96 terawatt-hours, while industrial consumption recorded the lowest figure of the century, at some 85 terawatt-hours. Declining electricity consumption in the UK Electricity consumption in the UK has seen a dramatic decrease in the past two decades, at least partially related to increased efficiency in equipment and distribution. In 2022, consumption from all electricity suppliers in the UK stood at 275 terawatt-hours. Projections indicate that the UK's electricity consumption will resume a growing trend after 2025, to surpass 32 million tons of oil equivalent in 2040.

This statistic shows SSE's weighted average costs of electricity (WACOE) of domestic electricity supply in the United Kingdom (UK) from 2011 to 2019. The average costs peaked at 67.14 British pounds per megawatt hour in 2016. In the year 2018/19, the WACOE amounted to 59.61 British pounds per megawatt hour.

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Generator Market In Data Centers Size 2024-2028

The generator market in data centers size is forecast to increase by USD 4.26 billion at a CAGR of 8.56% between 2023 and 2028. In the realm of data center operations, power reliability emerges as a critical factor, driving the market's growth. Next-generation power monitoring and management software are increasingly being adopted to ensure uninterrupted power supply and enhance overall efficiency. However, the data center industry's carbon footprint is a significant concern, leading to the exploration of renewable energy sources such as wind, solar, and hydroelectric power. Micro-economic factors, including the rising cost of fossil fuels and the growing popularity of nuclear energy, are also influencing market dynamics. Edge computing sites are gaining traction, necessitating the need for power solutions that cater to their unique requirements.

What will be the Size of the Market During the Forecast Period?

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The market play a pivotal role in the digital transformation of businesses, enabling the storage, processing, and dissemination of critical information. However, power interruptions and system downtime can lead to significant information loss and revenue damage. To mitigate these risks, data center operators are increasingly investing in power backup solutions. Power density, the amount of power used per unit area, is a critical factor in data center design. Edge data centers, which are smaller and closer to the source of data generation, require innovative power backup solutions due to their limited space.

Moreover, 5G technology and edge computing are driving the growth of edge data centers, necessitating the development of compact, efficient power backup systems. Power costs are a significant expense for data center operators. Fuel cells, solar-powered data parks, natural gas generators, and diesel generators are among the power backup solutions that offer cost-effective alternatives to traditional grid power. Li-ion batteries are gaining popularity as they provide high energy density and long cycle life. Colocation service providers offer customized capacity solutions to meet the unique power requirements of their clients. Power backup solutions, including backup power systems and power loss prediction technologies, are essential components of their offerings.

Furthermore, these solutions ensure uninterrupted power supply and enhance data center reliability. Electricity is the primary power source for data centers. Power backup solutions provide a safety net against power interruptions, ensuring business continuity. Power loss prediction technologies enable data center operators to anticipate power outages and take preventive measures. The generator market is witnessing significant growth due to the increasing demand for power backup solutions. Fuel cells, solar-powered data parks, natural gas generators, and diesel generators are among the generator types that cater to the power backup needs of data centers. In conclusion, power backup solutions are a critical component of data center infrastructure.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Diesel
  Gas


Capacity

  Less than 1MW
  1MW-2MW
  More than 2MW


Geography

  North America

    US


  Europe

    UK


  APAC

    China
    Japan


  South America



  Middle East and Africa

By Type Insights

The diesel segment is estimated to witness significant growth during the forecast period.In the data center industry, diesel generators play a significant role in providing power during fluctuating or transient scenarios. Their high-torque performance characteristic makes them an ideal choice for data centers with high power density requirements. Diesel generators come in various capacity ranges, making them a versatile option for data centers of all sizes. The diesel generator system consists of several components, including the diesel engine, generating unit, fuel storage/supply, and electrical switchgear. These generators are popular due to their reliability, safety, and minimal maintenance requirements. The output power capacity of diesel generators is greater than other types, making them suitable for large data center infrastructure.

Furthermore, diesel fuel is the most commonly used fuel in generators installed in data centers. The cost-effectiveness of diesel generators is another reason for their popularity. However, electricity prices and taxes can impact the overall cost of operating a data center with diesel generators. Edge data centers and colocation service providers are increasingly adopting 5G technology, which may require even more power density

A single member household uses an average of 54 cubic meters of water annually in the United Kingdom. This figure almost doubled when there were two members per household and increased to approximately 191 cubic meters within a household of five. In terms of daily use, a single person household used an estimated 149 liters per day, with water usage amounting to 276 liters per day when two people lived at home. Baths consume the most water There are many household appliances that use water, such as dishwashers, washing machines or toilets, and each uses varying amounts. However, it is baths that use the largest quantity. On average, a bath consumes 80 liters of water per use. In comparison, a shower uses 46 liters per use. Household water bills The average household water bill in the UK differs from company to company. In 2018, customers of water supply and sewerage utility Wessex Water paid on average 245 British pounds for their water bill. This was the most expensive in the UK. Water bills were on average cheapest for customers of Southern Water, at an estimated 158 British pounds. Southern Water covers areas of East Kent, Sussex, Hampshire and the Isle of Wight.

The average installation costs of small-scale solar photovoltaic systems in the United Kingdom have fluctuated in the period of consideration. From April 2021 onwards, the cost of solar installations in the 0-4KW band began to increase, outpacing cost increases in the 4-10KW band. In the period of consideration, prices peaked at 2,030 British pounds per kilowatt installed for the 0-4 kW band in January 2022.Installations In the financial year of April 2018 to March 2019, there were 32,370 installations in the 0-4kW band. This was an increase of 64 percent when compared to the same period the previous year. The highest number of installations occurred in March 2019, at 7,818. This peak was mainly due to the closure of the Feed-in Tariff scheme. Between April 2019 and March 2020, the number of installations declined by 30 percent compared to the previous year.Feed-in-Tariff The Feed-in Tariff (FIT) scheme was introduced in April 2010. It was a government program designed to promote the uptake of low-carbon and renewable electricity generation technologies. Since its introduction, the capacity of the FIT scheme for solar PV was highest in the first quarter of 2012 at 404,782 kW. By October 2020, the total capacity of Solar PV installations under the FIT scheme reached roughly 5.1 gigawatts. The scheme ended in April 2019.