Growing share of GB energy now independent of gas price

The 10GW of renewables covered by the Contracts for Difference (CfD) scheme means 15% of British power generation is now priced independently from gas.

Research by energy think-tank Ember forecasts that figure is set to grow to a third by 2030.  Although gas usually sets the price of power under the market’s marginal pricing structure, renewables priced under the CfD scheme are not subject to this, and have the price of power fixed through competitive auctions.

Ember pointed out prices under the CfD scheme have fallen since the scheme was introduced. The 2025 price auctions settled at £65.20/MWh for solar and £91.20/MWh for offshore wind.

It said this means new solar power is far below the price of gas power, though offshore wind remains similar to the pre-crisis average cost of gas power in 2026 (£89.30/MWh in Jan-Feb).