Renewables Will Be Cheaper Than Gas by 2028, New Analysis Confirms
New analysis confirms renewables will beat gas on cost by 2028-2029, even with grid and storage costs — plus 145,000 new UK jobs.
The argument that renewables are too expensive just ran into some inconvenient maths.
New analysis by the Renewable Energy Association — a non-profit trade body — confirms that electricity from renewables will be the clear economic winner over natural gas by 2028-2029. Crucially, this assessment accounts for the full system costs: grid upgrades, transmission infrastructure, energy storage, and all other associated expenses.
"2028/29 is the pivotal moment in our analysis, when renewables move decisively ahead of natural gas on a full system-cost basis," said Matt Parry, head of power and energy demand at the REA. "From that point onwards, the economics flip."
The analysis also found that following the UK's Clean Power pathway would create nearly 145,000 new jobs.
Key Facts
- Renewables cheaper than gas on full system-cost basis by 2028-2029 (REA Report)
- Clean Power pathway creates nearly 145,000 new UK jobs
- Analysis by the Renewable Energy Association (non-profit trade body)
- Accounts for grid upgrades, transmission, and storage costs
Why This Matters
The energy cost debate has long centred on the headline price of generating electricity. Critics of renewables have pointed to the additional costs of grid infrastructure, storage, and managing intermittency. This analysis takes all of those costs into account — and renewables still win.
For consumers, this means that the transition to clean power isn't just environmentally necessary — it's the more affordable path. For policymakers, it removes one of the last economic arguments against aggressive renewable energy deployment.
What We Don't Know Yet
The analysis is specific to the UK context and assumes current policy trajectories continue. Global gas price volatility could shift the crossover point in either direction. The 145,000 jobs figure includes indirect and induced employment, not just direct renewable energy jobs.
Sources: Renewable Energy Association · Positive News
Published 2026-02-20 · Category: Environment & Climate
