Wind energy generates £100bn net financial benefit for UK consumers between 2010 and 2023
A new study conducted by University College London (UCL) has revealed that UK investment in wind energy has generated a net financial benefit of more than £100bn for energy consumers between 2010 and 2023. This challenges misconceptions about the cost of the green energy transition and highlights the positive impact of renewable energy on the country’s economy.
Published in UCL Open Environment, the study found that wind-generated energy reduced electricity bills by £14.2bn and natural gas costs by £133.3bn during the 13-year period. While consumers did pay £43.2bn in green subsidies through their bills, the overall result was a reduction of £104.3bn in energy bills for UK households.
As the world prepares for COP30 in Brazil, the report’s findings bring attention back to the UK’s green energy transition and challenge the belief that sustainability, affordability, and energy security are in conflict with each other. The study’s authors argue that investment in wind energy should be viewed as a public good, with government support directly benefiting consumers and the industry.
The researchers used a long-term Merit Order Effect (MOE) model to assess the financial impact of wind power on the UK energy market. This mechanism shows how introducing low-cost renewable energy can lower wholesale electricity prices. Unlike previous analyses that only considered short-term MOE, this approach takes into account the potential cost of constructing new gas capacity, providing a more realistic representation of the energy market’s response over time.
The study found that models that only considered short-term MOE estimated the net benefit at just £0.9bn. However, by considering the potential increase in gas demand and prices if the UK had continued to invest in gas instead of wind energy, the study showed that the expansion of wind capacity from 5 TWh to 80 TWh during this period actually pushed gas generators out of the market and lowered electricity prices for consumers.
Lead author Colm O’Shea (UCL Geography) stated, “Far from being a financial burden, this study demonstrates how wind generation has consistently delivered substantial financial benefits to the UK. To put it into context, this net benefit of £104bn is larger than the additional £90bn the UK has spent on gas since 2021 as a result of rising prices related to the war in Ukraine.”
While this is good news for consumers, it also means that wind generators earn less per unit of energy, limiting their own profitability as they compete with themselves in the market. However, the study proves that the profitability of the wind energy sector should not be seen as a measure of its financial value.
O’Shea added, “The simplistic assessment that the wind industry is a drag on the UK economy is deeply mistaken. It is perfectly possible for the wind industry to be consistently unprofitable without government support yet still deliver a net financial and economic benefit to the country. This study demonstrates why we should reframe our understanding of green investment from costly environmental subsidy to a high-return national investment.”
The study also raises questions about the current funding model, as electricity users pay 100% of green subsidies while only receiving 18% of the financial benefit. On the other hand, natural gas users, who do not contribute to wind investment, have enjoyed 82% of the benefit since 2010.
Co-author Professor Mark Maslin (UCL Geography) commented, “The study raises serious questions about the fairness of who funds our transition to renewables and who benefits. Right now, the biggest winners are not the investors, wind generation firms, or even electricity consumers who foot the bill for subsidies – it is natural gas consumers, who benefit from reduced household and industrial energy bills.”
He added, “We should look at wind power as a public good, like our schools and roads, where governments and citizens stand to spend a little and gain a lot. Investment in wind is not just environmentally sound, it is economically strategic and is one of the best investments the UK has made in the last decade.”
The study, ‘Modelling the Long-Term Financial Benefits of UK Investment in Wind Energy Generation’, will be published as a preprint for peer review in UCL Open Environment on Tuesday 28 October 2025 at 00:01 UK time and is under a strict embargo until this time. DOI: https://doi.org/10.14324/ucloepreprints.290.v1.
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