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

The price of gas in the United Kingdom was 80.1 British pence per therm in the third quarter of 2025. It is anticipated gas prices will increase to 85.4 pence in the first quarter of 2026 before gradually falling to just under 77.6 pence by the second quarter of of the year. Surging energy costs and the cost of living crisis At the height of the UK's 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. Although prices fell to more expected levels by 2024, an uptick in inflation is forecast for 2025, with prices rising by 3.7 percent in the third quarter of the year. 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.

The average wholesale electricity price in September 2025 in the United Kingdom is forecast to amount to*******British pounds per megawatt-hour, a decrease from the previous month. A record high was reached in August 2022 when day-ahead baseload contracts averaged ***** 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.

UK Gas fell to 72.60 GBp/thm on December 2, 2025, down 1.67% from the previous day. Over the past month, UK Gas's price has fallen 11.75%, and is down 40.33% compared to the same time last year, 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 December of 2025.

UK Electricity decreased 23.24 GBP/MWh or 22.68% 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.

The United Kingdom power market, valued at approximately £X billion in 2025 (assuming a logical estimation based on the provided CAGR and market trends), is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) exceeding 7% from 2025 to 2033. This expansion is driven by several key factors. Increasing demand for electricity fueled by a growing population and industrial activity necessitates a significant increase in power generation capacity. Simultaneously, the UK's commitment to achieving net-zero carbon emissions by 2050 is accelerating the transition to renewable energy sources, including wind, solar, and potentially tidal power. This transition is attracting substantial investments and fostering innovation within the renewable energy sector. Government policies promoting renewable energy adoption, along with stricter regulations on carbon emissions from conventional power plants, further underpin this market's expansion. However, challenges remain. The intermittent nature of renewable energy sources requires significant investment in grid infrastructure upgrades and energy storage solutions to ensure grid stability and reliability. Furthermore, securing sufficient investment for large-scale renewable energy projects, managing public acceptance of new infrastructure, and navigating fluctuating energy prices continue to pose challenges. Despite these restraints, the UK power market presents significant opportunities for established players and new entrants alike. The ongoing expansion of offshore wind capacity, particularly in areas with high wind speeds, offers considerable potential for generating clean energy. Furthermore, the integration of smart grid technologies and advanced energy management systems is poised to improve efficiency and grid resilience. Companies involved in power generation, transmission, and distribution, including those specializing in renewable energy technologies, are well-positioned to benefit from this growth. The market segmentation into thermal, renewable (hydro, non-hydro), and nuclear power, along with transmission and distribution (T&D), showcases the diverse investment and operational opportunities within this dynamic sector. Companies like Electricite de France SA, Ecotricity Group Ltd, and others listed are key players navigating this complex and evolving market landscape. The forecast period of 2025-2033 promises substantial growth, creating a fertile ground for strategic partnerships, mergers, and acquisitions. Recent developments include: In March 2021, Statkraft, Europe's largest renewable energy generator, announced development plans for three new solar farms in the United Kingdom, two in Cornwall and one in Suffolk. The solar energy farms aim to provide 125.5 MWp of solar capacity, generate nearly 127 GWh of electricity per year, and power nearly 36,000 homes., In January 2022, the UK government announced GBP 100 million (USD 134 million) funding to support the Sizewell C nuclear power project in Suffolk. The funding will be used to continue the development of the project and aim to attract further financing from private investors and secure relevant approvals., In January 2022, SSE announced details of its first solar project that would deliver 30 MW of clean energy as part of its ambitious GBP 12.5 billion investment program to power change toward net-zero. The 30 MW solar farm at Littleton Pastures is located near Evesham, Worcestershire. Once completed in late 2023, the 77-acre site would be capable of powering about 9,400 homes.. Notable trends are: Non-hydro Renewable Power Segment to Witness Significant Market Growth.

The electricity delivery process has experienced a major shift in recent years, driven by a push to reduce emissions. Governments across Europe are actively moving away from conventional sources of electricity generation, leading to a decline in the continent's dependency on fossil fuels. According to the International Energy Agency (IEA), renewables accounted for 41.7% of electricity generation in Europe in 2022, up from 32.9% in 2017. The rise of renewables has spurred an influx of renewable generators and necessitated increased investment in electricity networks. This has lifted revenue for transmission and distribution network operators. Revenue is forecast to rise at a compound annual rate of 8.7% over the five years through 2025, reaching €2.8 billion. Falling wholesale prices and a reduction in overall electricity consumption spurred a drop in revenue during the pandemic. Excess demand for natural gas as economies loosened pandemic-related restrictions spurred a strong rebound in wholesale electricity prices in 2021, translating to a jump in revenue. Wholesale prices recorded a renewed spike following Russia’s invasion of Ukraine, spurring a surge in revenue generated by electricity producers and suppliers. Renewable generators were able to rake in extra profit from electricity sold to wholesale markets at inflated prices, counterbalancing a significant rise in costs for fossil fuel generators and electricity suppliers. Wholesale prices have since come down as Europe has diversified its fuel mix away from Russian gas. Revenue is forecast to decline by 5.1% in the current year. Revenue is forecast to increase at a compound annual rate of 0.3% over the five years through 2030 to €2.9 billion. The revised Renewable Energy Directive of the EU has set a goal for 69% of electricity to be generated from renewables by 2030. Electricity generators will continue expanding their renewables capacity, while investment in upgrading the electricity network to accommodate the rapid shift to renewables will boost income for transmission and distribution network operators. Rising renewable electricity generation will place downward pressure on wholesale prices, though the electrification of heat and transport is set to spur an uptick in demand for electricity across the continent.

The price of gas in the United Kingdom was *** British pence per therm in the fourth quarter of 2024. It is anticipated gas prices will increase to *** pence in the second quarter of 2025 before gradually falling to just under ** pence by the second quarter of 2027.
Surging energy costs and the cost of living crisis At the height of the UK's cost of living crisis in 2022, approximately ** 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 **** percent, in October of that year. Food and energy, in particular, were the main drivers of inflation during this period, with energy inflation reaching **** percent, and food prices increasing by **** percent at the height of the crisis. Although prices fell to more expected levels by 2024, an uptick in inflation is forecast for 2025, with prices rising by *** percent in the third quarter of the year. 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.

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.

This statistic displays the primary energy demand shares in the United Kingdom (UK) by 2035, by fuel type. It is forecast that by 2035, oil and gas will have a combined share of ** percent of the UK energy mix. The share of renewables and waste is expected to be ** percent.

Forecast: Electricity Distribution or Control Apparatus Parts Market Size Value in the UK 2023 - 2027 Discover more data with ReportLinker!

Forecast: Electricity, Gas, Steam and Air Conditioning Supply Gross Value Added in the UK 2022 - 2026 Discover more data with ReportLinker!

This dataset includes the future CfD generation weighted average strike prices (£/MWh) estimated by LCCC using 2020 real prices. It also includes the weighted average strike prices for the whole CfD portfolio including bespoke contracts, investment contracts, CfDs awarded under different allocation rounds to date and annual forecast market prices estimated by DESNZ (Annex m price growth assumption 16 May 2019) This dataset is updated following the end of each financial year.

Electricity prices in Europe are expected to remain volatile through 2025, with Italy projected to have some of the highest rates among major European economies. This trend reflects the ongoing challenges in the energy sector, including the transition to renewable sources and the impact of geopolitical events on supply chains. Despite efforts to stabilize the market, prices still have not returned to pre-pandemic levels, such as in countries like Italy, where prices are forecast to reach ****** euros per megawatt hour in September 2025. Natural gas futures shaping electricity costs The electricity market's future trajectory is closely tied to natural gas prices, a key component in power generation. Dutch TTF gas futures, a benchmark for European natural gas prices, are projected to be ***** euros per megawatt hour in July 2025. The reduced output from the Groningen gas field and increased reliance on imports further complicate the pricing landscape, potentially contributing to higher electricity costs in countries like Italy. Regional disparities and global market influences While European electricity prices remain high, significant regional differences persist. For instance, natural gas prices in the United States are expected to be roughly one-third of those in Europe by March 2025, at **** U.S. dollars per million British thermal units. This stark contrast highlights the impact of domestic production capabilities on global natural gas prices. Europe's greater reliance on imports, particularly in the aftermath of geopolitical tensions and the shift away from Russian gas, continues to keep prices elevated compared to more self-sufficient markets. As a result, countries like Italy may face sustained pressure on electricity prices due to their position within the broader European energy market. As of August 2025, electricity prices in Italy have decreased to ****** euros per megawatt hour, reflecting ongoing volatility in the market.

Forecast: Electricity, Gas, Steam and Air Conditioning Supply Gross Value Added Per Employee FTE in the UK 2024 - 2028 Discover more data with ReportLinker!

The United Kingdom Renewable Energy Market Report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utility, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

UK Geothermal Energy Market size was valued at USD 700 Million in 2023 and is projected to reach USD 2100 Million by 2031, growing at a CAGR of 15 % from 2024 to 2031.

Key Market Drivers: Government Commitment to Net Zero Targets and Clean Energy Transition: The UK government's Energy Security Strategy (2022) aims to achieve 100% zero-carbon electricity by 2035. Geothermal energy is predicted to generate up to 2% of the UK's heat consumption by 2030, or around 25 TWh per year, thereby assisting the clean energy transition. Rising Energy Costs and Need for Energy Security: The UK's home energy prices climbed by 54% in April 2022 and 27% in October 2022, highlighting the need for energy security. Geothermal energy provides a domestic, reliable heat source capable of supplying up to 20% of the UK's heating needs, potentially reducing reliance on imported energy.

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Demand Response (DR) Market Size 2025-2029

The demand response (dr) market size is forecast to increase by USD 3.3 billion, at a CAGR of 8.4% between 2024 and 2029.

Major Market Trends & Insights

North America dominated the market and accounted for a 59% growth during the forecast period.
By the Product - Hardware and software segment was valued at USD 4.36 billion in 2023
By the End-user - Industrial segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 87.49 billion
Market Future Opportunities: USD USD 3.3 billion 
CAGR : 8.4%
North America: Largest market in 2023

Market Summary

The market is witnessing significant growth as businesses and utilities seek innovative solutions to address the increasing gap between electricity supply and demand. According to recent studies, the global DR market is projected to reach a value of USD38.3 billion by 2026, expanding at a steady pace. This expansion is driven by the integration of renewable energy sources and the growing adoption of smart grid technologies. DR programs enable energy consumers to adjust their electricity usage in response to changes in the grid's conditions. By reducing peak demand, these programs help prevent power outages and improve grid stability. In the industrial sector, DR has gained traction due to its potential to reduce energy costs and improve operational efficiency. For instance, a study by the Lawrence Berkeley National Laboratory found that DR programs could save the US industrial sector up to USD20 billion annually. Moreover, the advent of the Internet of Things (IoT) is expected to further fuel the growth of the DR market. IoT-enabled devices can provide real-time data on energy usage, enabling utilities to optimize energy distribution and consumers to adjust their usage accordingly. However, the increasing threat of cyberattacks on IoT devices poses a challenge to the market's growth. Despite this, the benefits of DR far outweigh the risks, making it an essential component of modern energy systems.

What will be the Size of the Demand Response (DR) Market during the forecast period?

Explore market size, adoption trends, and growth potential for demand response (dr) market Request Free SampleThe market represents a significant opportunity for businesses to optimize energy usage and reduce costs without fail. According to recent data, approximately 20% of the total electricity consumption in the US is currently managed through DR programs. Looking forward, future growth is anticipated, with expectations of a 15% compound annual increase in DR participation over the next five years. A comparison of key numerical data highlights the potential impact of DR. For instance, DR programs have led to an average of 10% reduction in peak electricity demand, providing essential network congestion relief. Furthermore, DR technology deployment has resulted in an average of 12% system efficiency gains, contributing significantly to grid reliability improvement. These figures underscore the substantial benefits of DR, including emissions reduction, cost savings, and grid service provision. By integrating advanced metering infrastructure, load control devices, and energy management systems, businesses can effectively participate in capacity market bidding and event-driven load control. Additionally, DR aggregator platforms enable real-time data acquisition and building controls optimization, offering energy arbitrage opportunities and industrial automation system enhancements. In conclusion, the DR market offers businesses a valuable opportunity to optimize energy usage, reduce costs, and contribute to grid reliability. With increasing participation rates and continuous technological advancements, the potential for growth and innovation is significant.

How is this Demand Response (DR) Industry segmented?

The demand response (dr) industry 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. ProductHardware and softwareServiceEnd-userIndustrialResidentialCommercialGovernment BuildingsHospitalsData CentersAgricultureSolution TypeResidential DRMSCommercial DRMSIndustrial DRMSDeployment TypeAutomated Demand Response (ADR)Conventional Demand ResponseApplicationPeak Load ManagementGrid BalancingRenewable Energy IntegrationGeographyNorth AmericaUSCanadaEuropeFranceGermanyUKMiddle East and AfricaUAEAPACChinaIndiaJapanSouth AmericaBrazilRest of World (ROW)

By Product Insights

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

In the market, microgrid optimization and dynamic pricing mechanisms have emerged as key trends. Predictive load forecasting an

[Updated 28/01/25 to fix an issue in the ‘Lower’ values, which were not fully representing the range of uncertainty. ‘Median’ and ‘Higher’ values remain unchanged. The size of the change varies by grid cell and fixed period/global warming levels but the average difference between the 'lower' values before and after this update is 1.2.]What does the data show? A Cooling Degree Day (CDD) is a day in which the average temperature is above 22°C. It is the number of degrees above this threshold that counts as a Coolin Degree Day. For example if the average temperature for a specific day is 22.5°C, this would contribute 0.5 Cooling Degree Days to the annual sum, alternatively an average temperature of 27°C would contribute 5 Cooling Degree Days. Given the data shows the annual sum of Cooling Degree Days, this value can be above 365 in some parts of the UK.Annual Cooling Degree Days is calculated for two baseline (historical) periods 1981-2000 (corresponding to 0.51°C warming) and 2001-2020 (corresponding to 0.87°C warming) and for global warming levels of 1.5°C, 2.0°C, 2.5°C, 3.0°C, 4.0°C above the pre-industrial (1850-1900) period. This enables users to compare the future number of CDD to previous values.What are the possible societal impacts?Cooling Degree Days indicate the energy demand for cooling due to hot days. A higher number of CDD means an increase in power consumption for cooling and air conditioning, therefore this index is useful for predicting future changes in energy demand for cooling.In practice, this varies greatly throughout the UK, depending on personal thermal comfort levels and building designs, so these results should be considered as rough estimates of overall demand changes on a large scale.What is a global warming level?Annual Cooling Degree Days are calculated from the UKCP18 regional climate projections using the high emissions scenario (RCP 8.5) where greenhouse gas emissions continue to grow. Instead of considering future climate change during specific time periods (e.g. decades) for this scenario, the dataset is calculated at various levels of global warming relative to the pre-industrial (1850-1900) period. The world has already warmed by around 1.1°C (between 1850–1900 and 2011–2020), whilst this dataset allows for the exploration of greater levels of warming. The global warming levels available in this dataset are 1.5°C, 2°C, 2.5°C, 3°C and 4°C. The data at each warming level was calculated using a 21 year period. These 21 year periods are calculated by taking 10 years either side of the first year at which the global warming level is reached. This time will be different for different model ensemble members. To calculate the value for the Annual Cooling Degree Days, an average is taken across the 21 year period. Therefore, the Annual Cooling Degree Days show the number of cooling degree days that could occur each year, for each given level of warming. We cannot provide a precise likelihood for particular emission scenarios being followed in the real world future. However, we do note that RCP8.5 corresponds to emissions considerably above those expected with current international policy agreements. The results are also expressed for several global warming levels because we do not yet know which level will be reached in the real climate as it will depend on future greenhouse emission choices and the sensitivity of the climate system, which is uncertain. Estimates based on the assumption of current international agreements on greenhouse gas emissions suggest a median warming level in the region of 2.4-2.8°C, but it could either be higher or lower than this level.What are the naming conventions and how do I explore the data?This data contains a field for each global warming level and two baselines. They are named ‘CDD’ (Cooling Degree Days), the warming level or baseline, and 'upper' 'median' or 'lower' as per the description below. E.g. 'CDD 2.5 median' is the median value for the 2.5°C projection. Decimal points are included in field aliases but not field names e.g. 'CDD 2.5 median' is 'CDD_25_median'. To understand how to explore the data, see this page: https://storymaps.arcgis.com/stories/457e7a2bc73e40b089fac0e47c63a578Please note, if viewing in ArcGIS Map Viewer, the map will default to ‘CDD 2.0°C median’ values.What do the ‘median’, ‘upper’, and ‘lower’ values mean?Climate models are numerical representations of the climate system. To capture uncertainty in projections for the future, an ensemble, or group, of climate models are run. Each ensemble member has slightly different starting conditions or model set-ups. Considering all of the model outcomes gives users a range of plausible conditions which could occur in the future. For this dataset, the model projections consist of 12 separate ensemble members. To select which ensemble members to use, Annual Cooling Degree Days were calculated for each ensemble member and they were then ranked in order from lowest to highest for each location. The ‘lower’ fields are the second lowest ranked ensemble member. The ‘upper’ fields are the second highest ranked ensemble member. The ‘median’ field is the central value of the ensemble.This gives a median value, and a spread of the ensemble members indicating the range of possible outcomes in the projections. This spread of outputs can be used to infer the uncertainty in the projections. The larger the difference between the lower and upper fields, the greater the uncertainty.‘Lower’, ‘median’ and ‘upper’ are also given for the baseline periods as these values also come from the model that was used to produce the projections. This allows a fair comparison between the model projections and recent past. Useful linksThis dataset was calculated following the methodology in the ‘Future Changes to high impact weather in the UK’ report and uses the same temperature thresholds as the 'State of the UK Climate' report.Further information on the UK Climate Projections (UKCP).Further information on understanding climate data within the Met Office Climate Data Portal.