There's a politician in the UK who has a simple solution to every problem. His last simple solution to our problems was to leave the EU, it would appear that didn't fix everything because he's back with some more simple solutions. One of them is to dump renewable energy and get back to good old reliable fossil fuels. Like with all his solutions it's based on a half truth at best. This site gives a breakdown of where the money from our electricity bills goes and in 2025 about 20% of our bills go on some kind of renewables subsidy. But go back to 2022 and closer to 5% of our bills were going to renewables because the price of gas was driving the wholesale price of electricity and gas prices had shot through the roof. Even in 2025, the biggest part of our bills comes from the wholesale price of electricity, which is still mainly driven by the price of gas.
But what will happen in the future as more and more renewables come online? We can make a good guess by analysing the generation data from NESO and the price data from Exelon. I've taken the data for 2025 and here's a graph of electricity price against the percentage of fossil fuels being used to generate it.
That big spike in price between 50 and 60 percent squashes the graph so it's difficult to see what the trend is from this graph, but I put it in because it show a couple of interesting things. First is that the price of electricity can fall below zero, but it only ever happens when we have a lot of renewables online. I guess it might be a good time to invest in batteries, charge them when prices are low or negative and and sell the electricity when prices have gone back up. The second thing to note is the insanely high prices when we don't have renewables available. That's gas fired power stations making a killing because they can...
So if we put this data in buckets of 10% we can get a clearer picture of what's going on
This makes it pretty clear that as less fossil fuels are used to produce electricity, the price drops. Building more renewable capacity and batteries will put us on the left of the chart more frequently so prices in general should be lower. I will caveat that statement by saying I am no expert on the workings of the electricity market, so can't guarantee things are that simple...
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