Affordable home-grown onshore wind power could save billpayers £3 billion a year, says trade bodies

1/09/26 | News release
Onshore wind

New analysis by RenewableUK and Scottish Renewables shows that building new onshore wind farms to reach the UK Government's target of 29GW of onshore wind by 2030 would save UK billpayers £3 billion a year, compared to the cost of producing the same amount of electricity from new gas-fired power stations.

Research by the Energy and Climate Intelligence Unit (ECIU) has also revealed that in 2025 the wholesale price of electricity would have been 31% higher without wind power, if the UK had relied on more expensive gas instead.

The UK currently has 16.4GW of onshore wind fully operational, generating 12% of the UK’s annual electricity needs. Most operational onshore wind projects are in Scotland (10.7GW), and the Scottish Onshore Wind Sector Deal, signed in 2023, committed to 20GW of operational capacity by 2030.

The UK Government wants to see capacity increase in England and Wales from 4.2GW to 8.6GW by 2030. However, analysis by Aurora Energy Research shows that projects representing only half the capacity needed to meet the 29GW target have grid connection offers so far (only 10.4GW in Scotland and 2.6GW in England and Wales).

Tara Singh, CEO of RenewableUK, said:

"Hitting the UK’s onshore wind target by 2030, which will bring billions in benefits to all parts of the country, can only be achieved if we can get new projects connected to the grid faster and enable older turbines to be replaced by much more powerful new ones, which enjoys a high level of public support.

"As onshore wind is one of our cheapest forms of new power, and one of the fastest to build, this will cut bills and strengthen the UK’s energy security by delivering more homegrown power at the lowest cost. It also creates opportunities for us to grow our supply chain, creating jobs and boosting our economy further."

Angela Hepworth, CEO of Scottish Renewables, added:

"Scotland will be fundamental to delivering the UK’s future energy system. We already have a mature onshore wind sector supporting thousands of jobs, local supply chains and communities, with a significant opportunity to build on that success.

"Maximising Scotland’s onshore wind opportunity means bringing forward new projects while repowering our existing fleet with more efficient technology. Doing both can deliver more home-grown, affordable electricity while extending the jobs, investment and community benefits that have grown alongside the sector.

"But ambition must be matched by delivery. Planning, grid connections, transmission charging and routes to market need to work together to give investors confidence and turn Scotland’s onshore wind potential into lasting value for billpayers."

The research is being released at the Onshore Wind Conference 2026, co-hosted by RenewableUK and Scottish Renewables, on September 1-2 in Edinburgh. 

Michael Shanks MP, Minister for Energy, said:

"Onshore wind is a vital part of how we bring down energy bills and reduce our exposure to volatile fossil fuel markets. It's also an industrial opportunity creating good jobs across the country. 
 
“That's why we've lifted the ban on onshore wind in England, backed new projects across GB and consulted on how we make community benefits work even better for local people."

Stephen Gethins MSP, Minister for Europe, External Affairs and Energy, added:

"Most renewable electricity generated in Scotland comes from onshore wind, the product of decades of sustained support by this Government for one of the cheapest forms of power we can build.

"Onshore wind is helping to deliver jobs, drive economic growth and bring lasting benefits for communities across Scotland. By continuing to work with industry, we can build on that success and realise the full potential of Scotland’s renewable energy resources."

Ends

Notes to editors:

  • The Department for Energy Security and Net Zero reported that the Allocation Round 7 (AR7) onshore-wind clearing price was £72.24/MWh, while the a cost of £147/MWh for a new CCGT operating at a 30% load factor, both stated in 2024 prices for plants commissioning in 2030. The difference is £147 − £72.24 = £74.76/MWh.
  • The UK has 16GW of onshore wind fully operational. An additional 13GW of onshore wind is needed to reach 29GW by 2030. This additional capacity generates 42.1TWh operating at a 37% load factor in 2030, according to DESNZ. Multiplying by the additional annual wind output: 42,135,600MWh × £74.76 = £3.15 billion a year.
  • RUK and SR also note that the £147/MWh estimate by DESNZ uses its central long-term gas-price assumptions, which are around 70p/therm - 71p/therm in 2030, falling to 66p/therm by 2040. This is less than half current wholesale gas prices, i.e. the saving would be even higher if higher prices continued.
  • As wind and solar rely on the weather, adding more renewables to the grid incurs some integration costs to balance supply and demand. Publicly available sources indicate that the integration costs of 1GW of onshore wind could be roughly £20m a year, equating to around £260 million a year for a 13GW expansion, in a moderately flexible energy system.
  • Baringa notes that this statistic does not take account of the wholesale price decreases expected from additional onshore wind capacity, as well as the cost of supporting this capacity, but that they would expect wholesale price reductions to offset these additional costs from a consumer perspective.
  • These general integration costs should not be confused with transmission "constraint" costs. National Energy System Operator (NESO) analysis shows that major grid upgrades currently under construction, such as new subsea power cables, will unlock these bottlenecks to a large extent. NESO expects GB-wide thermal constraint costs to drop by around 60% as these key reinforcements come online around 2030.