Wind and solar save UK from £5.9bn of gas imports during Hormuz crisis

KUALA LUMPUR, 1 OCTOBER 2026 —

UK’s Renewable Surge Cuts £5.9bn Gas Import Bill as Middle East Crisis Drives Energy Prices to 2022 Highs

The United Kingdom has slashed its need for gas imports by an estimated £5.9 billion since the escalation of the Hormuz crisis in February 2026, as record wind and solar power generation displaced fossil fuel dependence in the country’s electricity grid.

With wholesale gas prices now averaging 189p per therm—the highest since the 2022 energy shock—clean energy’s rapid expansion has shielded British households from even steeper bill hikes, while exposing the fragility of global fossil fuel markets amid geopolitical tensions.

The shift marks a pivotal moment in the UK’s energy transition, where renewables now account for 41% of electricity generation in 2026—double the 25% share of gas—according to analysis by Carbon Brief. The data reveals how surging clean energy output, up 14% year-on-year, has directly reduced gas-fired power by nearly 10% since the start of the year.

Without this renewable boost, the UK would have required the equivalent of over 100 additional LNG tanker deliveries to meet demand, exacerbating supply chain strains already tightening due to the Middle East conflict.

September 2026 alone saw wind and solar output hit nearly 10 terawatt-hours (TWh), delivering £1.3 billion in avoided gas import costs—a figure that has compounded over the crisis. The timing is critical: gas prices, which had already tripled from pre-2019 levels to average 90p per therm in 2023, have since surged further.

Since March, when the US-Iran war erupted, prices climbed to 134p per therm, before spiking to 189p in September—levels last seen during the 2022 energy crisis triggered by Russia’s invasion of Ukraine. The looming winter demand surge and Europe’s depleted gas storage reserves further threaten to push prices higher, forcing competition with Asia for scarce LNG supplies.

The economic ripple effects are starkly uneven. While UK households face a 33% increase in gas bills—adding £200 annually from October—electricity costs have risen by just 4%, according to think tank Nesta. The divergence underscores the "breaking link" between electricity and gas prices, as Andrew Sissons, Nesta’s director for sustainable futures, noted in a social media post.

"The link between electricity and gas prices has already begun to break," he observed, highlighting how renewables are decoupling power costs from volatile global fossil fuel markets. Yet the relief is not universal: diesel prices have hit record highs of £2 per litre, while oil and refined fuel imports across Europe have cost an extra €100 billion since the crisis began, disproportionately straining lower- and middle-income nations.

Political leaders have seized on the renewable success as evidence of the need for accelerated clean energy expansion. In her Labour Party conference speech, Energy Secretary Miatta Fahnbulleh framed the UK’s exposure to global fossil fuel markets as the root cause of high bills. "We are exposed to global fossil-fuel markets," she stated, signaling a push to further reduce dependence on imported energy.

Prime Minister Andy Burnham echoed this in his own address, crediting renewables and nuclear for easing electricity price pressures. "We are already taking more control of our electricity prices with a massive expansion of home-grown renewables and nuclear," he said. "I have asked Miatta to speed up the breaking of the link between what we pay for power at home and the international gas market, to get bills down."

The UK’s experience offers a microcosm of broader regional challenges. Southeast Asia, including Malaysia, faces similar vulnerabilities as a net energy importer, with LNG prices already volatile due to supply chain disruptions and geopolitical risks. The Hormuz crisis has intensified these pressures, as global LNG demand outstrips supply, pushing prices upward.

For Malaysia, where gas accounts for nearly half of primary energy consumption, the UK’s renewable-driven resilience serves as both a cautionary tale and a potential model. The country’s own renewable capacity, while growing, remains far behind the UK’s 41% clean energy share, leaving it exposed to fossil fuel price shocks.

Domestically, the UK’s renewable surge has not been without challenges. Intermittency remains a hurdle, with wind and solar output dependent on weather conditions. However, the integration of battery storage and grid flexibility measures has mitigated some risks. Meanwhile, the government’s push to fast-track renewables and nuclear projects—including the controversial Sizewell C nuclear plant—aims to further reduce reliance on gas.

Yet critics argue that without deeper structural reforms, such as grid modernization and policy stability, the UK’s clean energy gains could stall.

As winter approaches, the UK’s renewable record will be tested. If wind and solar output remains strong, gas import savings could climb further, easing pressure on households. But if generation dips, the country may face renewed strain on its energy system. For now, the data underscores one undeniable truth: in a world where fossil fuel prices are once again spiraling, renewables are not just an environmental imperative—they are an economic lifeline.

The question for Malaysia and other energy-importing nations is whether they can replicate this shift before the next crisis strikes.