Power prices in Britain are predicted to remain high until the late 2030s.
That’s according to the latest forecast unveiled by consultancy Cornwall Insight, which highlights the surging demand for power as a key factor driving this trend, which is due to the increased adoption of electric heating and transportation, which puts a strain on the grid.
Experts say that in the near term, the introduction of low carbon energy sources is expected to bring prices down.
It is projected that prices will fall below £100/MWh by 2028, two years earlier than previously anticipated.
Approaching 2030, the transition to cost-effective renewable energy sources will coincide with the expanding electrification of the economy.
Tom Edwards, Senior Modeller at Cornwall Insight, said: “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.”
