Wholesale electricity prices in the United Kingdom hit a record-high in 2022, reaching 21.7 British pence per kilowatt-hour that year. Projections indicate that prices are bound to decrease steadily in the next few years, falling under five pence per kilowatt-hour by 2030.

The price of gas in the United Kingdom was 106 British pence per therm in the fourth quarter of 2024. It is anticipated gas prices will increase to 131 pence in the second quarter of 2025 before gradually falling to just under 80 pence by the second quarter of 2027.
Surging energy costs and the cost of living crisis At the height of the UK's recent cost of living crisis in 2022, approximately 91 percent of UK households were experiencing rising prices compared with the previous month. It was during 2022 that the UK's CPI inflation rate reached a peak of 11.1 percent, in October of that year. Food and energy, in particular, were the main drivers of inflation during this period, with energy inflation reaching 26.6 percent, and food prices increasing by 18.2 percent at the height of the crisis. Global Inflation Crisis The UK was not alone in suffering rapid inflation during this time period, with several countries across the world experiencing an inflation crisis. The roots of the crisis began as the global economy gradually emerged from the COVID-19 pandemic in 2021. Blocked-up supply chains, struggled to recover as quickly as consumer demand, with food and energy prices also facing upward pressure. Russia's invasion of Ukraine in February 2022 led to Europe gradually weening itself of cheap Russian energy exports, while for several months Ukraine struggled to export crucial food supplies to the rest of the World.

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.

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.

This dataset provides values for ELECTRICITY PRICE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

UK Wind Power Market size was valued at USD 39.3 Billion in 2024 and is projected to reach USD 95.3 Billion by 2032, growing at a CAGR of 11.7% from 2025 to 2032.

Key Market Drivers:

Rising Electricity Demand: Rising electricity demand is pushing the UK wind energy market. The growing electrification of transportation and heating is raising renewable energy demand. According to National Grid’s Future Energy Scenarios 2023, the UK’s annual power demand might increase by up to 70% by 2035, reaching 460-500 TWh.

Cost Reduction in Wind Technology: Cost reductions in wind technologies will propel the UK Wind Power Market. Wind power technology has become more competitive with traditional energy sources as its costs have decreased. According to the UK Department for Business, Energy, and Industrial Strategy (BEIS), the strike price for offshore wind in Contract for Difference (CfD) auctions has plummeted from £114.39/MWh in 2015 to £37.35/MWh in 2022, a 67% decrease.

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.

Daily data showing the System Price of electricity, and rolling seven-day average, in Great Britain. These are official statistics in development. Source: Elexon.

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Electricity Trading Market Size 2025-2029

The electricity trading market size is forecast to increase by USD 123.5 billion at a CAGR of 6.5% between 2024 and 2029.

The market is witnessing significant growth due to several key trends. The integration of renewable energy sources, such as solar panels and wind turbines, into the grid is a major driver. Energy storage systems are increasingly being adopted to ensure a stable power supply from these intermittent sources. Concurrently, the adoption of energy storage systems addresses key challenges like intermittency, enabling better integration of renewable sources, and bolstering grid resilience. Self-generation of electricity by consumers through microgrids is also gaining popularity, allowing them to sell excess power back to the grid. The entry of new players and collaborations among existing ones are further fueling market growth. These trends reflect the shift towards clean energy and the need for a more decentralized and efficient electricity system.

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

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The market, a critical component of the global energy industry, functions as a dynamic interplay between wholesale energy markets and traditional financial markets. As a commodity, electricity is bought and sold through various trading mechanisms, including equities, bonds, and real-time auctions. The market's size and direction are influenced by numerous factors, such as power station generation data, system operator demands, and consumer usage patterns. Participants in the market include power station owners, system operators, consumers, and ancillary service providers. Ancillary services, like frequency regulation and spinning reserves, help maintain grid stability. Market design and news reports shape the market's evolution, with initiatives like the European Green Paper and the Lisbon Strategy influencing the industry's direction towards increased sustainability and competition.
Short-term trading, through power purchase agreements and power distribution contracts, plays a significant role in the market's real-time dynamics. Power generation and power distribution are intricately linked, with the former influencing the availability and price of electricity, and the latter affecting demand patterns. Overall, the market is a complex, ever-evolving system that requires a deep understanding of both energy market fundamentals and financial market dynamics.

How is this Electricity Trading Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Day-ahead trading
  Intraday trading


Application

  Industrial
  Commercial
  Residential


Source

  Non-renewable energy
  Renewable energy


Geography

  Europe

    Germany
    UK
    France
    Italy
    Spain


  APAC

    China
    India
    Japan
    South Korea


  North America

    US


  South America



  Middle East and Africa

By Type Insights

The day-ahead trading segment is estimated to witness significant growth during the forecast period.

Day-ahead trading refers to the voluntary, financially binding forward electricity trading that occurs in exchanges such as the European Power Exchange (EPEX Spot) and Energy Exchange Austria (EXAA), as well as through bilateral contracts. This process involves sellers and buyers agreeing on the required volume of electricity for the next day, resulting in a schedule for everyday intervals. However, this schedule is subject to network security constraints and adjustments for real-time conditions and actual electricity supply and demand. Market operators, including ISOs and RTOs, oversee these markets and ensure grid reliability through balancing and ancillary services. Traders, including utilities, energy providers, and professional and institutional traders, participate in these markets to manage price risk, hedge against price volatility, and optimize profitability.

Key factors influencing electricity prices include weather conditions, fuel prices, availability, construction costs, and physical factors. Renewable energy sources, such as wind and solar power, also play a growing role in these markets, with the use of Renewable Energy Certificates and net metering providing consumer protection and incentives for homeowners and sustainable homes. Electricity trading encompasses power generators, power suppliers, consumers, and system operators, with contracts, generation data, and power station dispatch governed by market rules and regulations.

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The day-ahead tra

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.

These are inputs into the BEIS Carbon Price Models, which are used for analysis, including for estimating impacts on the carbon price of policy changes, and for producing BEIS's updated short-term traded carbon values for modelling purposes and for public policy appraisal. Updated short-term traded carbon values for modelling purposes have been used in the latest update to BEIS’s Energy and Emissions projections (EEP) and will be used in other models of electricity generation and investment across government. BEIS’s short-term traded carbon values for UK public policy appraisal are used for valuing the impact of government policies on emissions in the traded sector, that is those sectors covered by the EU Emissions Trading System (EU ETS). These data are not released: they are commercial in nature because they have been produced for the Department by external contractors under commercial contract.

UK Distributed Solar Power Generation Market size was valued at USD 3.83 Billion in 2023 and is projected to reach USD 7.92 Billion by 2031, growing at a CAGR of 9.5% from 2024 to 2031.

UK Distributed Solar Power Generation Market Dynamics

The key market dynamics that are shaping the UK Distributed Solar Power Generation Market include:

Key Market Drivers
Government Incentive Programs and Policy Support: The UK government’s Smart Export Guarantee (SEG) plan has considerably increased distributed solar adoption, with over 1.2 million UK homes receiving SEG payments by December 2023, according to the Department for Business, Energy, and Industrial Strategy (BEIS). The program incentivizes residential solar installations by allowing homeowners to earn money for exporting excess electricity to the grid, resulting in a 25% year-over-year increase in installations from 2022-2023. This expansion is driven by financial savings, lower energy costs, and increased access to renewable energy solutions.

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.

UK Power EPC Market size is growing at a faster pace with substantial growth rates over the last few years and is estimated that the market will grow at a CAGR of 2% from 2026 to 2032.

Key Market Drivers

Accelerated Renewable Energy Transition: The UK’s ambitious goal of decarbonization is a major driver of the Power EPC market’s expansion. According to the UK Department for Business, Energy, and Industrial Strategy (BEIS), renewable energy sources generated 43.1% of total electricity in 2022, to reach 65% by 2030. This quick transformation necessitates major engineering and construction investments in power infrastructure, resulting in high demand for EPC services in wind, solar, and future green energy sources.

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Demand Response Market Size 2025-2029

The demand response (DR) market size is forecast to increase by USD 3.30 billion, at a CAGR of 8.4% between 2024 and 2029.

The market is experiencing significant growth due to the increasing importance of energy savings and customer participation in managing electricity consumption. This market caters to various segments, including residential, commercial, and industrial, each with unique energy efficiency needs. In the residential segment, homeowners are increasingly adopting smart home technologies to reduce energy usage and save costs. In the commercial segment, businesses are recognizing the financial benefits of DR programs, which enable them to reduce peak electricity demand and lower energy bills. The industrial segment, which is a major consumer of electricity, is also embracing DR solutions to optimize energy usage and improve operational efficiency. The market is driven by factors such as the growing gap between electricity supply and demand, the emerging concept of the Internet of Things, and the increasing threat of cybersecurity risks. Energy savings, customer engagement, and grid reliability are key priorities for utilities and energy providers, making the market an essential component of the broader energy ecosystem.

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

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The market is witnessing significant growth due to the increasing focus on energy efficiency (EE) and grid stability. This market plays a crucial role in managing energy consumption and reducing greenhouse gas emissions, particularly in the context of rapid industrialization and urbanization. Government agencies and utility companies are increasingly implementing DR programs to ensure uninterrupted power supply and improve air quality. These programs leverage smart grids and real-time consumption data to enable on-demand services that respond to changes in energy demand. Manufacturing, residential, and commercial segments are the primary consumers of DR services. In the manufacturing sector, DR systems help optimize energy usage and reduce carbon emissions, while in the residential segment, homeowners participate in DR programs to save energy and lower their utility bills. In the commercial segment, DR solutions help businesses manage their energy consumption and reduce operational costs. Smart grid components, such as Advanced Metering Infrastructure (AMI) meters, enable two-way communication between utility companies and consumers, facilitating the implementation of DR programs. General Electric (GE) and Comverge are some of the key players in the DR market, offering energy savings and regulatory compliance solutions. Regulation systems play a significant role in driving the growth of the market.
For instance, the US Energy Policy Act of 2005 mandates utilities to implement DR programs to improve grid stability and reduce peak electricity demand. Furthermore, the US Department of Energy's Smart Grid Investment Grant Program provides funding for the development and implementation of DR projects. In conclusion, the market is a vital component of the energy ecosystem, enabling energy efficiency, grid stability, and uninterrupted power supply. The market is driven by government regulations, industrialization, urbanization, and the increasing focus on energy efficiency and carbon emissions reduction. Smart grids, real-time consumption data, and advanced metering infrastructure are the key enablers of this market, with major players such as GE and Comverge offering comprehensive DR solutions.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Hardware and software
  Service


End-user

  Industrial
  Residential
  Commercial


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Product Insights

The hardware and software segment is estimated to witness significant growth during the forecast period.

In the past, demand response programs were managed through manual consultations without the use of advanced technology. Utility companies and aggregators suggested energy-saving measures to homeowners based on manual predictions. For example, homeowners were asked to reduce their energy usage manually during suggested peak demand periods. However, these traditional methods placed a significant burden on consumers to manage the programs and sometimes resulted in incorrect predictions due to inaccurate calculations. To address these challenges, US aggregators have begun implementin

UK IT Services Market size was valued at USD 105.14 Billion in 2024 and is projected to reach USD 180.65 Billion by 2032, growing at a CAGR of 7% from 2025 to 2032.

UK IT Services Market Dynamics

The key market dynamics that are shaping the UK IT services market include:

Key Market Drivers

Digital Transformation Acceleration Post-COVID: The pandemic has dramatically accelerated digital transformation initiatives across UK businesses, creating sustained demand for IT services. According to the Office for National Statistics (ONS), the percentage of UK businesses using cloud computing services increased from 42% in 2020 to 53% in 2023, with enterprise spending on digital transformation reaching USD 66.46 billion in 2023. The UK government’s “Digital Strategy” initiative has further committed USD 3.23 billion in digital skills training through 2025 to support this transformation.

The UK Distributed Solar Power Generation Market is segmented by End User (Residential and Commercial and Industrial).