Renewable energy is at the centre of the debate about Britain's high electricity prices. Some argue that wind and solar power are driving up costs, requiring expensive subsidies, backup generation and upgrades to the electricity grid. Others point to the falling cost of
renewable technologies and argue that expanding them is the best way to bring down bills. So who's right?
In this episode, Helen Miller is joined by IFS researcher Peter Levell and Stephen Jarvis, Assistant Professor of Environmental Economics at the
London School of Economics, to explore the economics of renewable energy.
They explain why gas often determines the price of electricity, even as Britain generates more power from wind and solar, and examine how
investment in renewables has affected electricity costs over the past decade. They also discuss whether the government should slow down its plans to decarbonise electricity, how falling technology and battery costs could change the picture, and what growing demand from data centres might
mean for Britain's energy system.
This episode draws on new IFS research published as part of the 2026 Green Budget.
Host
Helen Miller
Helen joined the IFS in 2007. She has almost two decades of experience analysing UK fiscal policy and providing trusted advice to policymakers.
Participants
Peter Levell
Peter joined in 2009. He has published several papers on the microeconomics of household spending and labour supply decisions over the life-cycle.
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