Gas to matter less for UK energy prices as CfDs reshape the power mix

Stacked bar chart showing Britain’s expected 2028 electricity generation by type, distinguishing contracted-price CfD and RO output from gas-driven market-priced generation.

UK energy prices have been heavily influenced by gas-fired generation, but this link is set to weaken as a growing share of Britain’s electricity output moves onto fixed-price Contracts for Difference. The analysis shows that as more renewable and low-carbon projects shift into CfDs, less of the system will be exposed to gas-driven wholesale prices, easing cost pressures on households. […]

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