British businesses are battling extreme electricity price volatility, with costs fluctuating by nearly a hundredfold in a single day. A new white paper from Wattstor, a leader in renewable energy solutions, reveals the scale of the problem—and how companies can turn uncertainty into a competitive edge.

Titled Electricity Price Volatility: How to Turn a Market Challenge into a Business Opportunity, the report highlights the growing turbulence in the UK energy market. On 12 October 2024, for instance, wholesale electricity prices swung from -£0.31 per megawatt-hour (MWh) to £114.97/MWh in just a few hours. Such wild fluctuations can wreak havoc on business budgets, making energy one of the most unpredictable operating costs.

Negative Pricing on the Rise

The report also highlights the rapid increase in negative pricing events—periods when electricity prices dip below zero. In 2022, the UK recorded 29 hours of negative pricing. By 2024, this number had surged to 149 hours, and projections suggest it could reach 1,000 hours annually by 2027.

While negative pricing might seem beneficial, it presents challenges for businesses with their own renewable energy generation. Companies that produce surplus electricity may be forced to sell it back to the grid at a loss or even pay to offload excess energy when demand is low.

Businesses Are Taking Action

With no signs of stability in sight, UK businesses are adapting. Many are prioritising energy independence, investing in storage, and leveraging smart energy management to protect themselves from price swings.

“Without energy storage, businesses are vulnerable to extreme price swings,” says Stephan Marty, CEO of Wattstor. “When renewable generation dips, costly gas-powered energy fills the gap. This dependence on gas, combined with global supply uncertainty, makes the UK energy market increasingly volatile.”

However, businesses that embrace energy storage and smart management are gaining control. One mid-sized UK manufacturer using Wattstor’s onsite solar, battery storage, and energy management system (EMS) slashed its energy bill by 40% in a single volatile day in December 2024. By storing electricity when prices were low and using it when grid prices spiked, the company avoided unnecessary costs and demonstrated the benefits of a decentralised energy strategy.

Solutions for Stability

Wattstor’s white paper outlines key strategies businesses can adopt to stabilise energy costs and improve resilience:

• Onsite renewable generation – Reduces reliance on volatile wholesale energy prices.
• Battery storage solutions – Allows businesses to buy electricity at lower rates and avoid peak pricing.
• AI-driven energy management systems – Predicts price trends and automates cost-saving decisions.
• Fully dynamic energy tariffs with price caps – Enables companies to benefit from price drops while protecting against extreme spikes.

With energy market uncertainty showing no signs of easing, businesses that take control of their electricity strategy will be best positioned to thrive.

The full Wattstor report is available for download here