Nearly £50m a Day: Cost of Balancing Great Britain’s Power Grid Reaches Record Levels

High costs from grid constraints

September’s balancing costs totalled £505m, a monthly record. They are forecast to reach £3.2bn over the coming year, with the charges ultimately affecting household energy bills.

Renewables paid to stand down

On Wednesday, wind and hydropower facilities with about 9 gigawatts of capacity were paid not to generate, according to consultancy LCP Delta. That capacity could supply more than 8m typical households.

Windfarms in Scotland are often paid to switch off because high-voltage cables linking the region to stronger demand further south are insufficient. Gas plants elsewhere may be turned on to meet demand.

Emergency supplies and scrutiny

Days before the costs came to light, the National Energy System Operator, or Neso, sought “last resort” emergency help from France. Its counterpart agreed to provide power to the UK on Monday and Friday of the previous week. Neso has also brought in independent investigators following whistleblower claims that staff covered up a near-blackout during record temperatures in late June. Chief executive Fintan Slye said the Ofgem review would offer “lessons to be learned.”