Wind farms cut power prices by almost a third in 2025
Data shows growing trend of renewables cutting day-ahead wholesale prices by pushing out gas power plants
By Jess Ralston
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The average price of electricity traded on day-ahead markets last year was around £83 per megawatt-hour (MWh), but could have been as high as £121 per MWh, were it not for British windfarms limiting the role of gas power plants in setting prices, according to new analysis by the Energy and Climate Intelligence Unit (ECIU). [1]
The saving of around £38 per MWh amounts to a price cut of 31% (almost a third). Put another way, prices could have been about 46% higher without wind power.
These results build on savings of 25% in 2024, and are part of a longer-term trend of rising savings as Britain’s growing fleet of wind farms push gas power plants off the system.
Jess Ralston, Energy Analyst at the Energy and Climate Intelligence Unit, said:
“With the rollercoaster of gas prices over the past few years having hit British industry hard, and households still carrying debt from the gas crisis, this is a reminder that more renewables means more stability.
"The current turmoil surrounding Venezuela contrasts with more British renewables supplying homegrown energy and even helping to supress prices by edging gas – which will increasingly need to be imported as the decades-long decline of the North Sea continues – off the system. Once you have a wind turbine or a solar panel, you don’t have to pay another country for the wind or sun.”
Britain currently has over 29 GW of operational wind capacity, and almost 10 GW under construction. [2] The results for offshore wind in the current auction (AR7) for Contracts for Difference (CfDs) are due to be announced this week.
Notes to editors:
1. The analysis used the same public data sources and methodology as in the report Marginal Gains(ECIU, Oct 2025). The analysis considers power generation, storage and interconnection connected to the GB transmission grids, but not smaller sites connected to distribution grids.
2. Renewable Energy Planning Database (DENSZ, Oct 2025)
3. A recording of today's media briefing ahead of the results of the latest round of renewable energy auctions, or Contracts for Difference Allocation Round 7 (AR7), is available to download here: https://we.tl/t-vJIVtwG65J
For more information or for interview requests:
George Smeeton, Head of Communications, ECIU, Tel: 07517 407687, email: george.smeeton@eciu.net