The third quarter of 2023 saw Britain achieve an astounding milestone in renewable electricity generation, reaching unprecedented levels. According to the latest data from EnAppSys, the combined power generated from wind, solar, biomass, and hydro stations soared to an impressive 26.2 terawatt-hours (TWh), marking a historic high for this period.
Wind Power Takes the Lead
The driving force behind this record-breaking performance in renewable energy was a substantial surge in wind generation, contributing a remarkable 16.2TWh to the total. This surge not only boosted renewable energy but also had a significant impact on lowering wholesale energy prices throughout the quarter.
Wholesale Prices Experience a Dip
In Q3, wholesale energy prices experienced a substantial 12% decrease compared to the previous quarter. The average day-ahead price in the EPEX auction stood at £78.08 per megawatt-hour (MWh), with a slightly higher average of £78.36/MWh in Nordpool.
This decline in prices had actually begun in Q4 2022, resulting in the lowest quarterly average since Q3 2021. However, it's worth noting that wholesale prices did exhibit fluctuations within the quarter, primarily due to robust wind output, diminished demand, and volatile fuel prices.
Declining Demand Trends
Q3 recorded a total demand of 50TWh, marking the lowest level for any Q3 in recent years. This aligns with an ongoing trend of declining demand witnessed throughout the year. Reduced demand is a significant factor in the overall shift in the energy landscape.
Interconnector Flows and Britain's Energy Mix
Another noteworthy development during Q3 was the contribution of interconnector flows, which added a net import of 3.7TWh to Great Britain. This reflects a notable reduction from the 7.4TWh reported in the previous quarter. This decrease can be attributed to diminished exports from France, leading to Norway emerging as the primary power exporter to Britain during Q3.
The impressive surge in renewable energy, particularly from wind power, and the resulting dip in wholesale prices underscore the growing importance of sustainable energy sources in Britain's energy mix. As the country continues its transition towards cleaner and more renewable energy options, these milestones become significant markers of progress in the journey towards a more sustainable future.