Record-high renewable energy production in the UK caused a significant drop in wholesale electricity prices during the first quarter of 2024, according to a report by Montel EnAppSys.

Average prices plummeted by 22% compared to the previous quarter, with EPEX auction and Nordpool reporting average day-ahead prices of £64.57/MWh and £64.45/MWh, respectively.

Renewable energy production hit an all-time high of 35.40TWh, making up nearly half (47%) of Britain’s energy mix for the quarter. Wind power led the pack at 25.2TWh, followed by biomass (6.7TWh), solar (1.9TWh), and hydro (1.6TWh), exerting significant downward pressure on electricity prices.

This surge in renewables notably impacted the usage of Combined Cycle Gas Turbine (CCGT) plants, which saw a decrease from 23.5TWh to 21.8TWh compared to Q1 2023.

Furthermore, outages in Britain’s nuclear fleet resulted in a drop in nuclear power generation from 9.6TWh to 7.9TWh compared to the same period last year.

Imports into the UK saw a remarkable 75% surge, contributing 9.1TWh, with France emerging as the primary supplier at 4.8TWh.

Declining gas prices throughout the quarter also played a role in the overall decline in electricity prices.