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.

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.

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

Wholesale electricity prices in the European Union (EU) increased in 2024 after recovering from the global energy crisis in 2023. This was the result of a myriad of factors, including increased demand in the “post-pandemic” economic recovery, a rise in natural gas and coal prices, and a decline in renewable power generation due to low wind speeds and drought. Nuclear power's critical role In 2023, nuclear and wind were among the leading sources of electricity generation in the EU, accounting for more than one-third of the output. Nuclear energy continues to play a crucial role in the European Union's electricity mix, generating approximately 619 terawatt-hours in 2023, which accounted for about 20 percent of the region's power production. However, the future of nuclear power in Europe is uncertain, with some countries like Germany phasing out their nuclear plants while others maintain their reliance on this energy source. The varied approaches to nuclear power across EU member states contribute to the differences in electricity prices and supply stability throughout the region.

Renewable energy's growing impact As Europe strives to decarbonize its energy sector, renewable sources are gaining prominence. Wind power in Europe, in particular, has seen significant growth, with installed capacity in Europe reaching 257.1 gigawatt hours in 2023. This expansion of renewable energy infrastructure is gradually reshaping the electricity market, potentially leading to more stable prices in the long term. However, the intermittent nature of some renewable sources, such as wind and solar, can still contribute to price fluctuations, especially during periods of low output.

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 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.

Germany's electricity prices have experienced an increase in the latter half of 2024 and the beginning of 2025, reaching an average of 140.42 euros per megawatt-hour in February 2025. This marks a notable decrease from the record high of over 469 euros per megawatt-hour in August 2022, yet remains above pre-pandemic levels. The ongoing volatility in energy prices continues to impact German households and businesses, reflecting broader trends across Europe's energy landscape. Electricity price recovery German electricity prices began recovering back to pre-energy crisis levels in 2024, a period driven by a complex interplay of factors, including increased heating demand, reduced wind power generation, and water scarcity affecting hydropower production. The rise in natural gas and coal prices, exacerbated by the economic recovery post-COVID-19 and the Ukraine conflict, further contributed to the spike. Despite Germany's progress in renewable energy sources, with over 50 percent of gross electricity generated from renewable sources in 2023, the country still relies heavily on fossil fuels. Coal and natural gas accounted for approximately 40 percent of the energy mix, making Germany vulnerable to fluctuations in global fuel prices. Impact on consumers and future outlook The volatility in electricity prices has directly impacted German consumers. As of April 1, 2024, households with basic supplier contracts were paying around 46 cents per kilowatt-hour, making it the most expensive option compared to other providers or special contracts. The breakdown of household electricity prices in 2023 showed that supply and margin, along with energy procurement, constituted the largest controllable components, amounting to 40.6 and 11.6 euro cents per kilowatt-hour, respectively. While prices have decreased since the 2022 peak, they remain higher than pre-crisis levels, underscoring the ongoing challenges in Germany's energy sector as it continues its transition towards renewable sources.

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.

Electricity Production in the United Kingdom increased to 49720 Gigawatt-hour in the third quarter of 2024 from 49675 Gigawatt-hour in the second quarter of 2024. This dataset has Electricity Production values for United Kingdom.

Non-domestic consumers with consumption between 500 megawatt-hours and 2,000 megawatt-hours tended to pay higher electricity prices than those users with consumption greater than 20,000 megawatt-hours. As of 2023, electricity prices for these consumers amounted to 32.17 pence per kilowatt-hour and 27.07 pence per kilowatt-hour, respectively. Generally, for both consumption rates, electricity prices presented a trend of growth with a peak in 2023.

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.

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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

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.

Greater awareness about the effects of climate change has driven an aggressive decarbonising strategy spearheaded by renewables. Government targets and incentives encourage major investment in renewable assets among UK energy giants. Technology developments have boosted potential generating capacity, particularly in offshore wind, which has grown the fastest of all renewable energy sources. According to the Department for Energy Security and Net Zero, the share of electricity generated by major power producers from renewables surged from 34.5% in 2019-20 to 42.4% in 2023-24. Renewable generators' revenue is slated to climb at a compound annual rate of 8.7% over the five years through 2024-25 to reach £14.5 billion. Growth has been underpinned by the UK’s rapid expansion of renewable generating capacity. Offshore wind has recorded the most significant expansion in generation volumes as investors look to take advantage of technological advancements to tap into the UK's abundant natural resources. Soaring wholesale prices have added to revenue growth since H2 2021-22; however, operators of renewable generation assets that operate under a Contract for Difference (CfD) have been required to pay back the difference between wholesale prices and CfD strike prices, limiting the impact of a surge in wholesale prices on operating profit. Inflation-linked increases to fixed price mechanisms have also boosted growth. Revenue is forecast to jump by 11.4% in 2024-25. Revenue is forecast to swell at a compound annual rate of 11.1% over the five years through 2029-30 to reach £24.6 billion. The UK already has a strong pipeline of renewable assets set for delivery in the coming years, with ongoing government support likely to fuel further investment. In the short term, increased capacity is set against a backdrop of falling strike prices, though the extent of capacity expansion should support further growth. Hikes in strike prices secured in the most recent CfD allocation round will also boost growth in the longer term. Rising battery storage capacity should help support growth in renewables' share of the UK energy mix by reducing barriers associated with intermittent supplies of renewable power.

Have timely access to reliable Natural Gas price assessments in United Kingdom:

• Natural Gas, wholesale spot price, UK NBP Hub

Each assessment includes Natural Gas price history for the past 10 years, current prices, and short-term forecasts. Price assessments are updated on the 3rd business day of every month and are accessible via online charts, an Excel Add-In, and an API. Free previews for all assessments are available at Intratec website.

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Great Britain's hourly wholesale electricity price in a year, Open Power System Data platform

The default energy tariff price cap for direct debit customers in the United Kingdom is forecast to surpass 6,600 British pounds in April 2023. This projection continues an increasing trend in the energy tariff price cap, which has risen considerably since 2021 amid a surge in wholesale energy prices. The default tariff price cap is set by Ofgem, the United Kingdom's energy regulator.