The UK energy market is currently undergoing the most significant transformation in its history.
The shift to clean power and the rise in renewable energy generation – alongside evolving demand patterns and grid constraints – are creating a more dynamic, complex and interdependent market environment than ever before.
For energy buyers, this changing landscape presents both challenges and opportunities.
Positive near-term signals include falling forward prices and booming liquefied natural Gas (LNG) supply, which offer some optimism around affordability, particularly for seasonal hedges and forward purchasing. But the road to 2030 is far from smooth.
New sources of demand from data centres, AI infrastructure and the electrification of transport and industry are rising sharply.
Supply growth, while impressive, remains vulnerable to geopolitical shocks, infrastructure delays and weather variability.
And long-term structural reforms under the government’s Reform of Electricity Market Arrangements (REMA) could shift how and where costs are felt, adding further complexity to procurement.
So how do you factor all this change and uncertainty into a robust energy-buying strategy?
Our latest update from our Optimisation Desk team, Navigating the Evolving UK Gas and Power Markets: An Outlook for Energy Buyers shares essential insight around the key changes – and recommendations for how to manage them. It covers:
- What’s driving value in the near-term forward curve
- The trajectory of the UK’s clean power push
- Why the road to 2030 will be bumpy for energy buyers
- The challenges of transitioning to new electricity infrastructure
- Why the weather is set to have a greater influence
- How policy support is essential for cost control
- The evolution of market structures
- Key new demand drivers
- The renewed role of nuclear power
- What all this means for energy buyers
New energy market outlook now available
This outlook is part of a suite of market intelligence we exclusively produce for flexible-purchasing customers that are served by our Optimisation Desk. But you can access a free copy for yourself here.