UK gas power generation surges in Q1 2025

Report: Demand rebounds, renewables falter

Gas-fired power generation played a crucial stabilizing role in Great Britain’s electricity market during the first quarter of 2025, as reduced wind output and an uptick in demand drove a sharp increase in gas burn. According to Montel Group’s latest GB Electricity Market Summary, CCGT generation jumped 44% year-on-year, averaging 8.6 GW—a level not seen since Q4 2021.

Montel Group, a leading provider of energy market data, news, and analysis across Europe, publishes regular updates tracking developments in power, gas, and emissions markets. Its Q1 report offers insights into the UK’s power system performance, price drivers, and fuel mix trends.

“Gas was again a key driver of security of supply in Q1, with CCGT output up sharply to compensate for reduced wind generation,” Montel analysts noted. The increase was most notable in January and February, when calm, cold conditions created what the report called “classic dunkelflaute periods” that exposed the intermittency of renewables.

Domestic electricity demand rose 2.7% year-on-year, showing early signs of recovery from the energy crisis-induced lows of 2022 and 2023. “Demand remained relatively flat in Q1, but a slight recovery year-on-year suggests the market could be past the worst of the post-crisis consumption slump,” the report said.

Day-ahead gas prices peaked at £49.30/MWh in early February, with Montel pointing to increased demand for flexible generation and cold weather conditions. However, average prices over the quarter declined from the previous year, creating some relief for end-users. “While gas prices remained firm, they were generally lower year-on-year—easing some pressure on both industrial and residential consumers,” analysts noted.

The report also highlights increased electricity imports via interconnectors, particularly from France and the Netherlands. “Despite higher import volumes, these remained modest in the context of tight continental supply and cold weather,” Montel said, adding that Britain continued to rely on gas-fired generation during most peak periods.

Montel’s Q1 summary paints a picture of a GB power system still navigating volatility in both supply and demand. “The market remains delicately balanced,” the analysts concluded, “with gas continuing to play a critical role in bridging the gap during periods of renewable underperformance.”

Latest News
Global Compression Services adds two executives to leadership team
Gary Killingsworth named Gulf Coast regional sales manager; Christy Hanson Stafford appointed vice president of human resources
FERC to consider 265,750-hp Mountain Valley Pipeline expansion
Proposed MVP Boost Project would add compression at three existing West Virginia stations and construct a new compressor station in Virginia, increasing natural gas transportation capacity by 600,000 Dth/d
Caterpillar expands 3600 engine production as gas compression demand grows
Winston-Salem facility will provide additional assembly and testing capacity as company targets nearly tripling large reciprocating engine production capacity by 2030
CONNECT WITH THE TEAM
Jack Burke Senior Editor Tel: +1 262 527 0815 E-mail: [email protected]
Kristin Pride Brand Manager – North America/European Sales Executive Tel: +1 720 298 8546 E-mail: [email protected]
CONNECT WITH SOCIAL MEDIA