The UK was forced to pay exceptionally high prices for emergency electricity imports during this week’s heatwave after domestic power supplies fell short of demand.
The National Energy System Operator (NESO), which is responsible for balancing Britain’s electricity network, paid up to £1,379 per megawatt hour for imported electricity on Wednesday evening.
Wholesale electricity prices are normally around £80 per megawatt hour, meaning emergency imports cost around 17 times the usual price.
Industry estimates suggest the extra balancing measures added approximately £11 million to electricity system costs in a single evening.
Demand for electricity increased significantly as businesses, shops and offices relied more heavily on air conditioning during the exceptionally hot weather.
At the same time, domestic electricity generation was lower than expected. Some gas-fired power stations were unavailable because of planned summer maintenance, while four of Britain’s remaining nuclear reactors were offline due to planned and unplanned repairs. Solar panels also become less efficient during periods of extreme heat, reducing electricity output.
To keep the lights on, NESO secured additional electricity from other countries, mainly the Netherlands, using existing cross-border agreements.
Energy analysts have suggested electricity demand during the heatwave exceeded forecasts by as much as three gigawatts, roughly equivalent to the output of three nuclear power stations.
NESO said it successfully maintained a secure and resilient electricity system throughout the period using its standard operational procedures.
The incident has renewed debate over Britain’s future energy security.
The Government has stopped issuing new licences for oil and gas exploration in the North Sea as part of its energy policy, arguing that future investment should focus on cleaner forms of electricity generation while existing fields continue production.
Critics argue that reducing future domestic production could increase Britain’s reliance on imported energy, particularly as demand for electricity continues to grow. They also point out that neighbouring Norway continues to produce oil and gas from the North Sea, with much of its gas exported to Britain.
Supporters of greater North Sea production say producing more energy domestically could strengthen energy security and reduce dependence on imports. They also argue that transporting oil and liquefied natural gas from overseas can involve higher transport emissions than producing energy from fields much closer to the UK.
The Government maintains that expanding renewable energy, alongside investment in electricity networks and energy storage, will provide a more secure and sustainable energy system over the long term.
With Britain experiencing frequent periods of extreme weather, the latest events are likely to add to the ongoing debate about how the country can ensure affordable, reliable and secure energy supplies in the years ahead.
