Power prices may not return to their pre-Covid levels before the late 2030s, according to a new report.
Cornwall Energy’s latest GB Power Market Outlook said that greater demand for power from electrification of heat, industry and transport will keep prices elevated for years ahead.
Although rising levels of renewable generation power sources will reduce UK wholesale prices to below £100/MWh by 2028 rising demand will keep prices relatively high.
Tom Edwards, a senior modeller at Cornwall, commented: “The challenges of rising power demand, increasing exports and reliance on gas continue to keep our power price forecasts above historical levels for many years to come.
“Despite these concerns, we continue to be optimistic about the positive impact of low-carbon, cost-effective energy sources and favourable gas price trends. We are pleased to see prices are expected to fall below £100/MWh sooner than previously anticipated, which offers consumers a glimpse of the benefits of the ongoing energy transition.”