Rising Costs of Bottlenecked Wind Energy as Gas Reliance Grows

The soaring costs of managing bottlenecks in Britain’s electricity transmission network have reached alarming levels, with consumers bearing the brunt of these inefficiencies. In the first two months of 2025, the cost of mitigating grid constraints surged by 60 per cent, hitting over £250 million. This increase reflects the challenges posed by the rapid expansion of offshore wind farms and the slow pace of necessary grid upgrades.

While wind power promises affordable, clean energy, the current network struggles to transmit it effectively from northern Scotland, where many wind farms are located, to demand-heavy regions like England. When power cannot be delivered due to bottlenecks, the electricity system operator is forced to compensate wind farms to switch off, while also paying gas-fired power plants to generate electricity closer to where it is needed. These costs, ultimately passed on to consumers, are rising at an unprecedented rate.

Data from Wasted Wind, a resource monitoring this issue, shows that while payments to wind farm operators to curtail their output fell year-on-year, the cost of replacement power from gas plants more than doubled. Over £210 million was spent on gas generation during this period, driven by escalating wholesale gas prices. This highlights the financial penalties of relying on fossil fuels to bridge the gap.

Critics argue that accelerating the modernisation of Britain’s grid infrastructure is essential to mitigating this inefficiency. Some advocates, such as Octopus Energy, are calling for the introduction of regional electricity pricing to address the issue. Under this system, areas with surplus renewable energy could offer lower prices, incentivising industries like data centres to relocate and make use of cheaper, greener power. This approach, proponents say, could ease the need for costly grid expansions while reducing energy prices for consumers.

The National Energy System Operator has defended its efforts by highlighting that costs associated with wind farm curtailment have halved, suggesting some progress in this area. However, critics remain vocal about the inefficiencies persisting within the system. Campaigners like Britain Remade have criticised the government for failing to capitalise fully on wind energy’s potential and for wasting resources on gas-fired alternatives. The quarter-of-a-billion mark for balancing costs was breached twice as quickly in 2025 compared to 2024, underscoring the urgent need for reform.

As energy prices remain a critical issue for households, addressing these inefficiencies could bring relief to consumers and allow Britain to better utilise its renewable energy capabilities. Expediting grid investments, alongside exploring innovative solutions like regional pricing, could help tackle this growing crisis and ensure a cleaner, more efficient energy future.