Jun 13, 2025
UK Pays Unprecedented Amounts to Wind Power Operators to Shutdown
The UK's grid operator has reported a significant increase in balancing costs as more wind farms in Scotland are compensated for not generating electricity to prevent overloading the constrained network in that area.
When wind energy production is high in constrained regions like Scotland, the National Energy System Operator (NESO) must reduce wind output and activate backup energy from unconstrained areas to maintain system balance. It's crucial for grids to balance electricity supply and demand to prevent blackouts.
In the financial year 2024/2025, NESO's total balancing costs reached $3.7 billion (£2.7 billion), marking a 10% rise from the previous year, according to their annual report released on Thursday.
NESO noted that "wind curtailment is currently a major driver of balancing costs," highlighting that a significant amount of wind capacity in Great Britain is located in Scotland, which is currently constrained.
During the 2024/2025 fiscal year, wind curtailment volumes climbed to 13% of the potential wind output had there been no curtailment, as stated by NESO.
The levels of wind power curtailment were worsened by increased congestion in the system, partly due to scheduled outages in Scotland and high wind generation over the summer when transfer capacity was at its lowest.
In 2024, wind power surpassed natural gas to become the UK's largest source of electricity generation for the first time in a full year, according to NESO data.
However, the high costs associated with curtailments highlight the inefficiency of the current power generation and supply system. With excess electricity going to waste and rising costs for network operators, household bills are increasing as the operator compensates wind farms for remaining inactive.
When wind energy production is high in constrained regions like Scotland, the National Energy System Operator (NESO) must reduce wind output and activate backup energy from unconstrained areas to maintain system balance. It's crucial for grids to balance electricity supply and demand to prevent blackouts.
In the financial year 2024/2025, NESO's total balancing costs reached $3.7 billion (£2.7 billion), marking a 10% rise from the previous year, according to their annual report released on Thursday.
NESO noted that "wind curtailment is currently a major driver of balancing costs," highlighting that a significant amount of wind capacity in Great Britain is located in Scotland, which is currently constrained.
During the 2024/2025 fiscal year, wind curtailment volumes climbed to 13% of the potential wind output had there been no curtailment, as stated by NESO.
The levels of wind power curtailment were worsened by increased congestion in the system, partly due to scheduled outages in Scotland and high wind generation over the summer when transfer capacity was at its lowest.
In 2024, wind power surpassed natural gas to become the UK's largest source of electricity generation for the first time in a full year, according to NESO data.
However, the high costs associated with curtailments highlight the inefficiency of the current power generation and supply system. With excess electricity going to waste and rising costs for network operators, household bills are increasing as the operator compensates wind farms for remaining inactive.