Experts have warned that Britain is facing a decade of higher energy prices until costs can be brought back down by renewable energy generation. Prices are expected to hit as much as £5,000 a year for the average home in 2023 before they slowly fall back. This figure alone will be four times the prices seen in 2021, and research suggests that elevated prices are set to stay for several years to come.
Consultancy firm Cornwall Insight said that the record energy prices have been fuelled by the Ukraine war, and although renewable energy investment is being hastened, it will take time for consumers to really notice the difference.
Another vital development has been seen with new interconnectors that can transport energy between the UK and other countries, smoothing power transfer from sources that include wind and solar. This is a key development in renewable energy adoption, which can often be intermittent in the UK, particularly with technologies such as solar.
A spokesperson at Cornwell Insight, Tom Edwards, said that the huge increases in energy bills might be short-term, but they made it challenging to see the picture long-term. He said that the data suggested that power prices would dip by 2030, showing that governments and markets are meeting pricing challenges by investing in clean energy to boost energy supplies and energy security of demand.
Governments across Europe have been forced to look at their own energy supply security as Russian gas exports have declined. The hope is that the growth of green energy investment will increase competition and stabilise the market so that savings can be passed on to customers.
With projections suggesting that the average household may spend over £550 on energy this January, the move to green energy cannot come fast enough.