The rise of renewable energy is pushing gas-fired electricity out of Britain’s power mix, with gas generation in 2024 hitting its lowest level in 20 years.
According to a new report from Montel Analytics gas-fired output dropped to 72.6TWh, down from 86.8TWh in 2023 and a significant fall from 111.4TWh in 2022.
Renewables, meanwhile, contributed 45% to Britain’s overall power generation, delivering 118.1TWh last year, slightly up from 116.9TWh in 2023.
Wind power was the star performer, making up 70% of renewable output. Average wind generation reached a record 9.43GW, however transmission constraints forced some wind generation to be curtailed, limiting its full potential.
Electricity imports also played a role in pushing gas-fired power out of the mix. GB interconnectors saw record net imports averaging 3.8GW, up 40% from 2023.
France and Norway were the top contributors, supplying 2.2GW and 1.1GW respectively.
Falling gas demand came alongside lower gas prices, which averaged £28.63/MWh, down 16% from 2023. Electricity prices mirrored this trend, falling 23% to an average of £72.58/MWh, driven by the surge in renewables.
The rise of renewables also brought a surge in negative pricing hours, with 139 recorded in 2024, the most since negative prices were first observed in 2019.
This highlights the growing dominance of renewables in the energy market, even as challenges like transmission capacity constraints remain.
Phil Hewitt, Director at Montel Analytics said: “Renewable output would have been higher because almost 10% of potential wind output could not be used because of transmission system constraints. Meanwhile, the importance of electricity transfer though the interconnectors has been accentuated following Ofgem’s recent approval of five major new undersea energy links.
“The initial decline in gas prices was driven by elevated wind generation as a consequence of storms Isha and Jocelyn in the early part of 2024, although prices generally rose during the rest of the year.
“At this time of year, gas price spikes are not uncommon as additional gas reserves are often needed to meet higher-than-usual demand during periods of cold, calm weather. “
