We need to free renewable energy from wholesale market volatility

Renewables recently passed another major milestone, producing over half of all UK electricity for the second year running. While this is a great achievement, renewables still only account for around 16% of final energy consumed - and remain heavily exposed to the very fossil fuel markets they’re meant to replace, like the recent price shocks as a result of the Middle East gas price crisis.

The problem isn’t renewable energy, it’s the market structure it operates within. The UK’s wholesale market runs on marginal pricing, where the overall cost of electricity is always set by the most expensive unit at any moment. More often than not, that’s gas. So even when renewable generation is abundant and low-cost, prices are still dictated by fossil fuels. With UK gas mostly imported, those prices are shaped by global events far beyond our control. Recently, geopolitical tensions in the Middle East have once again sent gas prices sharply higher, dragging electricity prices with them.

This means uncertain costs and revenues for renewable generators, ultimately undermining confidence from investors, businesses and consumers.

Towards a stable market model

Instead of relying on a gas-dominated market structure that keeps renewables tied to volatile pricing, we need energy markets that incentivise sustainable growth. We have been pioneering a new renewable energy operating system that delivers true price stability for consumers and generators, combatting energy poverty and making renewable energy viable without subsidies. Our goal is to cut out the middleman and connect users directly with renewable generators, providing a reliable supply of renewable energy for businesses.

In practice, this means that businesses can access structured, shaped volumes of renewable power at stable prices. Full 24-hour traceability of power sources allows businesses to see and prove exactly where the renewable generation they received came from. This has transformed transparency and allows businesses to meet stringent regulatory requirements and ESG targets with ease. Crucially, supply is regulated and guaranteed while the system forecasts consumption and generation, helping continually balance supply and demand at portfolio level. The result is something the current market cannot offer - transparency, stability, and genuine energy security.

Freeing renewables from volatility and uncertainty

Private markets can free renewables from exposure to the global volatility that characterises wholesale markets by offering access to buyers with long-term, predictable contracts. This provides more predictable renewable energy revenue and greater returns which unlock more investment opportunities in renewables. Our model also helps reduce the renewable industry’s reliance on state subsidies, replacing revenues that are subject to changing political winds with stable revenues from customers. In short, it gives renewable generators a dependable foundation to grow and scale with confidence - something that the current system rarely provides.

Making renewables mainstream

Since our commercial launch in 2022, we have grown to manage over a terawatt hour of power - enough to supply over 400,000 homes. The network has grown to include large infrastructure-grade renewable generators and major consumers from data centres and EV charge point operators to critical infrastructure. The company is growing internationally, entering new markets including the US and India.

The market model is now expanding to include batteries, electric heat and transport and green gas. Our goal is simple - to free market prices from the grip of fossil fuels and make renewable energy the mainstream market, dramatically accelerating the energy transition.