The latest Contracts for Difference (CfD) round has resulted in an unprecedented number of offshore wind energy projects achieving funding, securing future growth in the industry. However, it is essential that our grid is able to accommodate growing levels of renewable energy supply if the UK is to reach its target of a decarbonised grid by 2030 – especially as energy curtailment reached new heights in 2025, due to connection constraints.

We explore these stories in February’s Bryt Insight, alongside innovative developments in renewable energy and sustainability. Read more below:

Short-term wholesale electricity prices increased at the start of January, becoming more volatile as the month progressed before stabilising towards the end of the month.

The initial rise in short-term wholesale electricity prices was due to:

• Cold weather, which caused an increase in demand for heating.
• Reduced electricity imports from Europe, partly due to unplanned outages in some of the French nuclear fleet, reducing availability of supply.
• Rising carbon prices, which impact the cost of fossil fuels. This was due to higher demand of carbon allowances, following recent changes to the rules for both the UK and EU’s emissions schemes, which introduced more industries into the scheme.
• Increased gas prices, due to depleted gas storage (following a cold winter that caused greater demand for heating) and increased demand for Liquified Natural Gas (LNG) from Asia, decreasing supply in the UK. Gas prices continue to impact electricity prices, so this contributed to an increase in wholesale electricity prices.

As the month continued, prices became more volatile, before stabilising towards the end of January. This stability was due to an increase in supply levels, when traders sold back and reintroduced supply to the market in later January.

Tension had also eased in the Middle East, contributing to this market stability. The appointment of a new US Federal Reserve Chair, who is responsible for setting interest rates for the US, also increased confidence amongst traders and helped to stabilise electricity prices.

Long-term wholesale electricity prices followed a similar trajectory to short-term prices, increasing at the start of January before decreasing again back to levels seen at the beginning of the month. These prices were influenced by many of the same factors as short-term prices.

Long-term wholesale electricity prices for the near season (Summer 2026) increased more than seasons that are further away.

Wholesale electricity prices for the future may be volatile for similar reasons as seen for the initial price rises in January, and demand for LNG in Asia looks as though it may also continue, causing less to arrive in the UK, reducing supply levels, and increasing electricity prices.

However, weather may have less of an impact on wholesale electricity prices as temperatures warm in future months, especially on long-term wholesale electricity prices. Although tensions have eased in the Middle East, unforeseen geopolitical factors may still have an impact on wholesale electricity prices in the future.

The cost of Renewable Energy Guarantees of Origin (REGO) certificates continued the downward trend seen in the last few months. This was due to lower demand and the increased number of REGO certificates, following windy conditions and new offshore wind farms increasing renewable energy supply.

In the UK’s latest Contracts for Difference (CfD) auction, Allocation Round 7 (AR7), record amounts of offshore wind energy secured funding, marking the event as Europe’s largest ever offshore wind auction. The 8.4 gigawatts (GW) secured is enough to provide energy for the equivalent of more than 12 million homes, and the projects span across Scotland, England and Wales.

CfDs are one of the UK Government’s regulatory methods of supporting investment in new renewable energy generation. They are long-term agreements with the Government that secure a fixed price for the power the renewable energy generator produces. This means that if prices are low, the Government will supply the difference, and if prices are high, the generator will pay the excess. This aims to create greater price certainty for investors and developers, and encourages the development of new generation projects.

The price per megawatt hour of producing offshore wind is 40% lower than prices needed for building and operating new gas power plants¹, which may have been a strong contribution to its popularity in this auction. Amongst those who received funding is Berwick Bank wind farm². This project is set to be one of the largest wind farms globally, with as many as 307 wind turbines, and could deliver 4.1GW of installed capacity.

The outcome of the latest auction will be a crucial contribution towards the UK’s Clean Power Action Plan targets, which aim to have 43-50GW of offshore wind constructed or contracted by 2030, compared to current capacity of 16.6GW.

The auction’s results for solar and onshore wind will be released in March, and you can read more about the outcome of the latest auction, here³.

Great Britain has seen unprecedented levels of renewable energy curtailment in 2025, driven by constraints in grid connections, according to recent research. Curtailment occurs when grid operators limit renewable electricity generation, often due to too much supply available compared to demand, or inefficient grid infrastructure, which means that electricity can’t be distributed to where it’s needed.

Compared to 2024, curtailment has increased by 22%, resulting in 10TWh of renewable energy being curtailed. The research found that 98% of curtailed volumes were from generators in Scotland, and that only 61% of potential renewable energy in Northern Scotland was able to be connected to the grid in 2025.

Renewable energy has been developing faster than the grid has been able to keep up. In order to achieve a stable electricity system that is powered by renewables, and to limit curtailment costs, it’s essential that grid infrastructure receives the necessary upgrades and expansions to facilitate the renewable energy that is ready to be generated. Positively, Ofgem recently announced £28 billion of funding for energy network companies to expand the grid’s capacity and ensure a reliable and safe system, and we anticipate that this funding will help to make future curtailment less frequent. Increasing energy storage will also be a key solution to this challenge, being able to store and dispatch renewable energy when needed, as well as increased levels of demand flexibility, which will help to balance supply and demand. In fact, the National Energy System Operator (NESO) predicts that we will need four-to-five times more flexibility by 2030, in order to reach the UK’s Clean Power targets⁴.

Find out more about the report’s findings on renewable energy curtailment in Britain and Ireland, here⁵.

Discounts of up to £120,000 will be applied to electric trucks

The UK Government has agreed to provide discounts of up to £120,000 on new electric trucks and lorries, as part of their newly announced £18 million investment to extend the Plug-in Truck Grant to March 2026⁶. This announcement is part of the Government’s plans to decarbonise transport whilst making it more financially accessible for businesses.

This additional discount means that these are the new grant levels, determining the discounts based on the size of the vehicle:

• smaller trucks could access discounts of up to £20,000
• mid-sized trucks could save up to £60,000
• larger trucks could save as much as £80,000
• the largest lorries could access discounts of up to £120,000

This increase in funding for electric trucks means that a growing number of businesses may now be able to decarbonise their fleets, contributing to the UK Government’s wider goal of achieving net zero carbon emissions by 2050.

People living in extreme heat set to double by 2050

The amount of people who are living in extreme heat is set to double by 2050, if the global temperature reaches 2°C above pre-industrial levels, according to new research⁷. This means that 3.79 billion people, almost 41% of the global population, will experience dangerously extreme heat, with the most affected populations residing in India, Nigeria, Indonesia, Bangladesh, Pakistan, and the Philippines.

No part of the world will be unaffected, according to the research; at 2°C of global heating, the amount of ‘uncomfortably hot days’ in the UK will increase by 150%, compared to 1°C of global heating, which has already been reached. With the UK’s infrastructure aging and traditionally more built to protect against the cold, it’s imperative that climate adaptation and mitigation efforts accelerate, in order to limit impacts on health and infrastructure.

10,000 companies have verified emissions reduction targets with the Science Based Targets initiative (SBTi)

The Science Based Targets initiative (SBTi) has reached a significant milestone, with 10,000 organisations across the world having verified emissions reduction targets. This achievement demonstrates the growing number of businesses who want to follow a science-based trajectory to reduce their emissions.

These companies make up over 40% of global business wealth, representing more than 90 countries, across various sectors and sizes. Japan now has the largest number of companies with validated targets, followed by the UK.

With climate action more important than ever, it’s encouraging to see the growing number of businesses committing to take emissions reductions through accountable targets, just like our own SBTi targets. Find out more about SBTi’s milestone, here⁸.

New pioneering hydropower system begins generating electricity in Devon

A new high-density hydro system located in Devon⁹, the first ever of its kind, is now operational and generating electricity. The hydro system is unique due to its gentle inclines and declines in height, rather than the typically steep, large drops from mountains that are usually required for hydropower dams. The system is embedded underground, and could be a cheaper and quicker alternative to traditional hydro systems. The mineral-rich fluid used in this hydropower system is more than double the density of water, allowing the moderate slopes to generate the same amount of electricity as steeper hydropower stations. This means that less space is needed to generate the equivalent amount of electricity, compared to traditional models.

Hydro projects function like a battery, driving water upwards to utilise surplus renewable energy, then releasing the water to generate dispatchable electricity when it is needed during times of high demand. This means that the system can be used as a storage facility, as well as a generator of renewable energy.

The innovative combination of generation and storage in this project’s design will be valuable in balancing supply and demand as we move towards a grid powered by renewables, and we look forward to seeing similar projects expand across the UK and around the world.

The UK agrees to join Europe’s plan for groundbreaking offshore wind farm

The UK is amongst 10 European countries who have agreed to build an offshore wind farm and power grid in the North Sea¹⁰, which will be able to transport energy to countries through high-voltage cables under the sea. This project will generate 100GW of wind electricity, and aims to turn the North Sea into a ‘clean energy reservoir’.

Energy ministers from the UK, as well as France, Germany, Denmark, and other European countries, joined in Hamburg and signed the declaration that committed to the plan. This committed them to installing 15GW of offshore wind capacity together, each year from 2031 to 2040, by encouraging and supporting private sector investments. In addition, over 100 industry companies have signed a declaration, committing to generate 91,000 jobs in this sector and limit offshore wind costs by 30% by 2040, compared to 2025 levels, driven by increased scale, further industrialisation and lower capital costs.

Following the monumental result from the recent CfD auction, it is encouraging to see that the UK’s commitment to wind energy will extend throughout the 2030s. We know that we cannot reach a sustainable energy future alone, so it’s encouraging to see the UK working together with its European neighbours to mitigate the global impacts of climate change.

New scholarship students have been granted the STEM Scholarship Fund with Statkraft

Two new students have benefitted from Statkraft’s STEM Scholarship Fund, in partnership with the University of the Highlands and Islands. Statkraft’s scholarship fund provides £3,000 per year for the duration of the accepted students’ academic journey, as they pursue courses in science, technology, engineering or mathematics subjects, allowing them to access education that may have otherwise been out of reach.

The STEM Scholarship Fund demonstrates Statkraft’s commitment to investing in communities that are at the heart of their renewable energy projects, ensuring that they are a ‘good neighbour’ to those nearby¹¹.

This funding will provide the new recipients with the funds to pay for the costs associated with their university courses, allowing them to fully focus on their academic progress. The fund is now supporting a total of six students, representing a minimum investment of £72,000 over the course of the scheme.

To find out more, read here¹².

If you have any questions about how these updates might affect you or would like to find out more, our team of experts are happy to provide further insight. You can contact them on 0330 053 8620 or at heretohelp@brytenergy.co.uk.