While this is worthwhile, I think that the parent post may be referring more to the "UK Electricity price" to consumers, and how this is calculated. It is related, but not quite the same as "roll out more renewables faster and so burn less gas"
> "If we actually paid the average price of what our electricity now costs to produce, our bills would be substantially cheaper."
> In simple terms: the price in the electricity market on any given day is dictated by the most expensive source of generation available, which in the UK would be its gas-fired power plants.
I support "roll out more renewables faster" and pricing reform. Linked article makes it clear that the UK has "one of the most expensive electricity markets in the world" and this impacts consumers and businesses.
Which does raise the question: who benefits from the current pricing arrangement, and why do they have the deciding vote?
It being more expensive in Britain doesn't mean it doesn't work the same way (just come out with a lower price) elsewhere in the world.
From your electricinsights article:
> Most markets work in this way: Saudi Arabia’s oil is cheap to produce but gets a very similar price to higher-cost oil from the North Sea. The underlying economic principle is so widespread that it’s known as the Law of One Price.
We did not start to push for renwable energy to get prices lower, this is mainly a mitigation against previously unaccounted-for externalities (CO2 emissions and air pollution).
Complaining about transition costs, to me, is like complaining that industrial waste disposal was cheaper back when we just dumped everything into the next river.
At this point, there's not that much other non-renewable generation on the UK grid, so expanding renewables will reduce the impact of gas on prices (though it'll likely be non-linear).
Gas complements renewables really well because gas can readily be tapped “on-demand” whilst renewables can only be tapped “on supply”.
It’s relatively easy to turn off gas when renewables are supplying energy to the grid at near zero cost marginal cost. But also easy to turn on gas when the renewables aren’t supplying energy, or when demand spikes in a manner uncorrelated to renewable generation.
Batteries are a more elegant solution long term, of course.
Gas complements everything well. It's relatively cheap, easy to store power in large amounts and completely dispatchable. Nothing else can do all 3.
Batteries work well for short term day-to-day storage but they're impossibly expensive for seasonal storage which we will need a solution for for the last ~5-10% of decarbonization.
Probably the only way to fully decarbonize will eventually be to synthesize gas.
Gas can be used two ways: Gas in a conventional base-load steam turbine generator power plant is not easy to tap on demand. For peaking plants using gas turbine generators it is, but those are also less efficient.
The article mentions at the same site they're building a gas plant using the same tech as a large ship engines, which is an attempt to hit a sweet spot for future usage as they have high efficiency at part load.
https://www.theguardian.com/business/2025/apr/20/why-the-uks...
> "If we actually paid the average price of what our electricity now costs to produce, our bills would be substantially cheaper."
> In simple terms: the price in the electricity market on any given day is dictated by the most expensive source of generation available, which in the UK would be its gas-fired power plants.
I support "roll out more renewables faster" and pricing reform. Linked article makes it clear that the UK has "one of the most expensive electricity markets in the world" and this impacts consumers and businesses.
Which does raise the question: who benefits from the current pricing arrangement, and why do they have the deciding vote?