Following the announcement of the record-breaking amounts of wind energy secured at the latest Contracts for Difference (CfD) auction, solar, onshore wind and tidal power projects have shown similar success. In this month’s Bryt Insight, we explore what the latest results of the CfD auction mean, and also highlight the new records set by renewable energy, both in the UK and on a global scale.

In our Bryt Energy Market Update, we also address the market impacts of the ongoing conflict in Iran and the Gulf Arab states, with a number of areas having been impacted by the recent missile strikes.

We explore these updates, alongside other sustainability-related news, in March’s Bryt Insight. Read more below:

You will likely have seen that missile strikes were recently launched on Iran by the US and Israel, with retaliation following, and a number of targets having been hit across the region. As a result, both short- and long-term gas and power prices rose significantly at the start of March, and market liquidity (the ability for trades to be made) has declined. While our primary concern is with those affected by the situation, we also want to ensure you’re kept informed about the market developments that may impact your business.

What is causing the increase in energy prices?

Qatar is one of the world’s leading producers of Liquefied Natural Gas (LNG), accounting for 20% of global supply¹, and the Middle East is the largest producer of oil. The production of LNG and oil has been heavily impacted by the conflict, with Qatar’s state-owned energy company, QatarEnergy, temporarily halting production at some of its facilities², including Ras Laffan – an onshore gas processing base – and Mesaieed, another important site for its natural gas output. Qatar’s LNG exports pass through the Strait of Hormuz, which has also been directly affected by the situation, and as a result, flows from the region are currently constrained along this key shipping route.

Europe remains heavily dependent on LNG imports. Gas markets across the world are interlinked, so any disruption, or risk of disruption, to LNG supply directly impacts European gas and electricity pricing and has resulted in a price increase. As a substantial proportion of the UK’s electricity is generated from gas (26.8% in 2025³), this price increase meant that wholesale electricity prices have also increased, affecting the price achievable for all other sources of electricity generation. Initial price movements have already been significant, and prices could continue to be volatile whilst this situation unfolds.

At this stage, it’s not clear whether this conflict will be short-term or develop into something more prolonged. However, for now:

• Electricity prices are likely to remain elevated and volatile
• Liquidity will most likely be reduced
• Bid/offer spreads (the gap between what buyers are willing to pay and sellers are willing to accept) are expected to widen

Even if the conflict de-escalates, prices may still remain high, due to uncertainties around any peace deals that may be agreed. It is also likely that there will be a delay in restarting production from the sites that were closed.

Other forward-looking factors

Alongside the impact of the conflict, Europe’s gas storage will need to be refilled after more gas than usual was used over the winter months due colder weather. If warm weather comes early this year, as was seen in the last couple of years, higher demand for air conditioning in Asia may increase demand for LNG, competing with European demand and impacting how quickly Europe’s gas storage could restock. With less LNG supply available, coal may also be used across Europe to fulfil demand for electricity generation. As coal prices are currently high, this would also increase the cost of electricity imports through European interconnectors to the UK, which could cause the UK’s electricity prices to increase in turn.

Looking further back, at the start of February, short-term wholesale electricity prices decreased rapidly. This was caused by these factors:

• Gas and coal prices decreased due to warmer forecasted weather, and an expectation of less demand for heating.
• Carbon allowance prices also fell, a change from the previous rise since the start of the year. This was due to political intervention to reduce them, following pressure from businesses over the high energy costs across Europe⁴.

The cost of carbon, gas and coal still impacts electricity prices, with fossil fuels still making up part of the UK’s fuel mix⁵.

Short-term wholesale electricity prices remained low throughout February, with reduced demand for heating due to warmer weather, and increased supply due to strong renewable energy generation. As a result, higher coal prices towards the end of the month didn’t impact wholesale electricity prices.

Following the gradual decrease in the cost of Renewable Energy Guarantees of Origin (REGO) certificates over the last few months, the last week of February saw prices rise, due to a brief increase in demand. REGO prices have now started to decrease again in March.

Record-breaking amounts of solar power projects have been awarded funding in the seventh allocation round (AR7) of the Contracts for Difference (CfD) auction⁶, as well as onshore wind and tidal projects. 4.9 gigawatts (GW) of solar capacity across 157 projects secured CfD contracts, alongside 1.3GW of onshore wind and 20.9MW of tidal projects. Combined, these solar, onshore wind and tidal projects have the installed capacity of 6.2GW of renewable energy, will generate £5 billion of investment into these projects from the private sector, and could create up to 10,000 direct and indirect jobs.

CfDs are one of the UK Government’s regulatory methods of supporting investment in new renewable and low-carbon electricity generation. They are long-term agreements with the Government that secure a fixed price for the power the renewable electricity generator produces. This aims to create greater price certainty for investors and developers, and encourages the development of new generation projects.

Tidal energy projects that have secured funding through the CfD scheme has now reached 140MW – meaning the UK is in a world leading position on this emerging technology, with half of the world’s operational deployment in the UK’s waters⁷. Combined with the record-breaking 8.4GW of offshore wind energy projects that were announced in January, 14.7GW of renewable electricity capacity across 201 projects have secured contracts in the AR7 round of the CfD scheme.

With this increased investment in UK renewables, this latest CfD round means that US gas imports may be halved by 2030⁸, strengthening the UK’s energy independence. All solar and onshore wind projects that secured funding in AR7 are due to be operational by the end of 2029, ensuring that they will be key contributors to the UK Government’s Clean Power 2030 Action Plan.

Increased investment in decarbonising the national’s grid will create significantly more financial returns and allow the UK to reach its 2050 net zero goals, compared to current levels of planned investment, according to recent research from Arup. The study analyses two different pathways from 2025-2040. In one pathway, investment levels in the national electricity grid remains the same; in the other, investment increases by an additional £34 billion, responding to meet rising electricity demand from data centres and the electrification of heat and transport industries. Currently, the energy system faces challenges that require significant investment, such as addressing delays in lead times for components like transformers and high-voltage cables, which can delay projects for as much as four years and increase costs. In 2024, the UK relied on imported energy for 43.8% of its electricity, in part due to such constraints and challenges.

The report found that return on investment is much higher in the second scenario, unlocking £194 billion for the economy – a 4:1 return. £95 billion of this return would be in the services industry, £33 billion in property, and £20 billion in the construction industry. This could also generate on average 68,000 additional jobs every year, compared to the other scenario. This large financial return is mostly due to improvements in efficiency; renewable energy generators and data centres would be more quickly connected to the grid, which would unlock jobs and income at a quicker rate and reduce costs from delays. Returns could also be seen in lower energy bills from less constraint and curtailment costs (which happens when insufficient infrastructure and grid congestion means that renewable energy generators must be paid to be turned off), for both homes and the private sector, enabling a more reliable and affordable electricity system.

The research makes it clear that a joined-up approach will be necessary in this scenario, across generation, storage, transmission, distribution and demand side flexibility, to fully unlock these benefits. You can read more about the report’s findings, here⁹.

Those with Radio Teleswitch Service (RTS) meters urged to exchange their meters as phase out reaches final stage

The phase out of the technology that supports Radio Teleswitch Service (RTS) meters has entered its final stage, and aims to reach completion in summer 2026. Positively, 300,000 meters have been exchanged since last year. However, EnergyUK and Ofgem are urging the remaining 146,000 customers with RTS meters to exchange their meters by reaching out to their supplier to make an appointment, before the RTS technology is switched off¹⁰, to avoid any disruption.

You can find out more about the phase out of RTS meters and how to identify if you have one in our blog, here, or in our Bryt Minds episode on the topic, here.

The UK’s wind energy surpasses monthly generation record

Between England, Scotland and Wales, a record 10.6 terawatt-hours (TWh) of wind energy was generated in January 2026, mainly due to stormy weather and increased wind capacity, according to analysis from think-tank Ember. This achievement is a result of consistent year-on-year increases in wind capacity. The record surpassed the previous record of 10.4TWh, which was set in December 2023.

According to the analysis, this generation helped to reduce the need to purchase gas, which saved £164 million. The analysis also found that 0.5TWh of electricity was generated from solar power in January. Together, this brings the energy generated by wind and solar in the UK to a record-breaking 11.1TWh, which is 5% higher than the previous record.

Read more about the new record in wind generation, here¹¹.

Global wind and solar energy pipelines reach new high

Whilst the UK’s wind energy is breaking records, on a more global scale, wind and large-scale solar capacity also reached new highs in 2025, according to recent research. 4.9TW of wind and large-scale solar capacity is now in development, either in building or planning stages. This includes 2.7TW wind energy and 2.2TW large-scale solar projects. This pipeline has grown by 500GW (11%) in 2025.

Just as it is positive to see the UK’s progress, it’s encouraging to see similar progress being made on a more global scale, in increasing renewable energy generation. You can read more about the report’s finding, here¹².

The UK signs new agreement with California to collaborate on renewable energy investment

The UK and California have signed a Memorandum of Understanding (MoU) agreement, to cooperate on a transatlantic investment in renewable energy, the climate and the environment. The UK’s Energy Secretary, Ed Miliband, and California’s Governor, Gavin Newsom, recently signed this partnership together.

It is hoped that this agreement will help to strengthen the partnership between the two regions, as they share expertise about protecting the environment and building resilience, whilst connecting businesses and researchers across the two economies. This agreement will also help to drive innovation and investment, supporting the creation of skilled job opportunities in the UK. You can read more about the UK and California’s new agreement, here¹³.

Statkraft’s solar farm project is awarded funding at the AR7 round of the Contracts for Difference (CfD) scheme

Following on from our update about the recent AR7 auction results, Statkraft’s Kitland Solar Farm project has also successfully secured funding through the CfD scheme. The solar farm is in North Somerset and is a 39.9MW project that is located alongside a Battery Energy Storage System (BESS), allowing the solar energy to be stored and dispatched when needed. Once operational, the solar farm will generate enough renewable electricity to power 13,000 homes, and will help to improve the local biodiversity, with six hectares of new woodland and four new ponds, alongside a community orchard.

To read more about this milestone from Statkraft, visit here¹⁴.

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 here.