What the Heatwave Reveals About Britain's Electricity System

Despite last week's high temperatures, electricity demand in Britain was not exceptionally high, yet the system came under pressure due to low wind and insufficient solar output during evenings. Gas-fired generation remains crucial for flexible capacity, but much of the fleet is aging and less reliable. Summer maintenance and limited new capacity have tightened margins and raised prices. To ensure stability, policymakers need to retain and refurbish existing gas plants, as low-carbon alternatives are not yet scalable. The upcoming Capacity Market Auction is a key opportunity to address these challenges.