“It’s absurd that Britain pays Scottish wind farms to turn off when it’s windy, while simultaneously paying gas-power stations in the South to turn on.“
British households and businesses have been hit with an “absurd” £1 billion bill this year to switch off wind turbines, as the national grid struggles to handle the power generated during high winds.
In the first 11 months of 2024, wind power curtailment reached 6.6 terawatt hours (TWh), according to official figures. This is a sharp increase from 3.8 TWh for the entirety of 2023 and 1.9 TWh just five years ago. Curtailment involves paying wind farms to shut down temporarily to prevent the grid from being overwhelmed.
The cost of these payments has surpassed the £945 million spent in 2022 and the £779 million recorded last year, according to market data analysed by Octopus Energy.
Infrastructure Fails to Keep Up with Renewables Boom
The surge in curtailment is being blamed on the rapid expansion of wind farms, particularly in Scotland and the North, outpacing the development of infrastructure needed to transport electricity to areas with higher demand, such as the South.
Clem Cowton, director of external affairs at Octopus, criticised the inefficiency of the current system, telling the Telegraph:
“It’s absurd that Britain pays Scottish wind farms to turn off when it’s windy, while simultaneously paying gas-power stations in the South to turn on. We need to change the rules that govern our system to make the most of our homegrown energy and get bills down for British households and businesses.”
Experts have suggested adopting a regional pricing system, which would incentivise wind farm development closer to high-demand areas, reducing the need for costly transmission across hundreds of miles of cables.
However, such proposals are controversial. Critics argue it could lead to higher energy costs for homes and businesses in the South while lowering prices in the North, deepening regional disparities.
Curtailment Costs Could Soar to £6bn
Jason Mann, an electricity markets expert at FTI Consulting, said the current pricing system is exacerbating the problem:
“Congestion costs are an inevitable problem under the current market design we have in Britain. Increasing transmission capacity can alleviate the issue, but it won’t eliminate it entirely. At some point, you have to consider incentivising greater demand in the North, for example through lower prices.”
The National Energy System Operator (Neso) has warned that curtailment costs could reach £6 billion annually by 2030 unless significant reforms are made.
The government is reportedly examining options for market reform, with Neso urging ministers to act quickly to provide clarity and certainty for electricity generators.
Pushback from Industry Groups
However, manufacturers’ body MakeUK and renewable energy lobby group RenewableUK have raised concerns about regional pricing. They argue it could jeopardise planned wind farm developments, threatening the Government’s ambitious target of achieving a “net zero” power system by 2030.
Critics fear that uncertainty over pricing could deter the unprecedented investment and infrastructure building required to meet this goal.
Government Response
A government spokesman defended the progress being made, saying:
“The National Energy System Operator’s report shows we can achieve clean power by 2030 with cheaper electricity, even factoring in constraint payments, and a more secure energy system for Britain.
“We achieved a record-setting round of renewables projects, with enough power for the equivalent of 11 million homes – essential to give energy security to families across the country.
“We will work with industry to rewire Britain, upgrade our outdated infrastructure to get renewable electricity on the grid, and reduce constraint payments.”*
The Cost of Doing Nothing
While the transition to some renewable energy sources has made significant strides, the escalating costs of curtailment highlight the urgent need for modernising the grid and overhauling outdated pricing systems. Without swift action, British consumers could face even higher energy bills as the country grapples with the inefficiencies of Labour’s planned green energy overhaul.
