A new report indicates that prices could become more volatile starting in 2026.
Today, researchers warned that volatile prices will be here to stay through 2030 if current energy strategy is not changed.
This worrying finding is based on the new Benchmark Power Curve Report by consultancy Cornwall Insight. It predicts that prices will become more volatile starting in 2026.
According to the report’s authors, this could lead to a spike in prices of up to PS95/MWh between summer and winter.
The forecasts also indicated that prices could rise to PS120/MWh between seasons by 2030.
This is a result of an increased dependence on energy imports that are “unsecure”, increased weather risks caused by climate change, and a decrease in coal power plants and nuclear.
Tom Edwards, Senior Modeling Consultant at Cornwall Insight commented that “without significant changes in the way we procure and supply energy, we are likely see many years of boom and bust energy pricing here in the UK.”
“Policy makers need to look further ahead and realize that market designs for the next 20-30 year cannot be based on stable economic, geopolitical or ecological systems.
“A higher focus on resilience and risk over efficiency and low cost across the economy is necessary.”
