Energy prices to peak in 2024

Based on its latest Benchmark Power Curve report, the energy market analysts then predict prices will fall to a low of just over £80 per megawatt hour by 2030. And, while this does mark a large decrease, it remains substantially higher than the pre-energy crisis levels of less than £50 per megawatt hour.  

Its analysts have also calculated that the government will miss its 2030 50 gigawatts offshore wind capacity target by nearly three gigawatts, increasing from 12.5 gigawatts in 2023-24 to 47.1 gigawatts with delays in offshore wind deployment in the short to medium term contributing to this.

Despite this, offshore wind is forecast to become the largest source of electricity in capacity terms by 2028 – making up 26% of the GB generation capacity by the end of the decade.  

Cornwall Insight senior modeller Tom Edwards said: “Offshore wind delays, spurred on by cost worries and project setbacks, pose a roadblock to reaching net zero.

“We can see the country is travelling in the right direction towards a renewables-based electricity system, however, our estimates continue to show it is simply not fast enough to deliver on government targets.  

“Time is of the essence, and it is critical that the government reassess its commitment to accelerating renewable energy adoption, which includes being more flexible when setting auction parameters to reach the UK’s offshore wind goals. 

“Rolling back our net-zero ambitions and slowing our transition away from fossil fuels is likely to be a costly delay that will not only see us fall further behind in decarbonising the country but will leave consumers shouldering the prolonged burden of high prices.

“Without a resolute commitment to a greener and more sustainable future, achieving net zero emissions and pre-crisis energy bills becomes an increasingly elusive goal.”