The cost to consumers arising from constraints on Britain’s electricity network surged by 60 per cent to £253 million in the first two months of 2025, as wind farms were paid to switch off and gas plants were paid to replace them, according to analysis by Wasted Wind. This marks a sharp increase from £158 million in the same period last year.
At the root of the issue is the rapid expansion of offshore wind farms, built faster than Britain’s transmission infrastructure can be upgraded. Power generated on windy days in northern Scotland – where electricity demand is low – faces bottlenecks when attempting to reach users in England, where consumption is higher. If the network cannot transmit excess power, the National Energy System Operator compensates wind farms to shut down and simultaneously pays gas-fired power stations, usually closer to the demand centre, to fire up.
The cost paid directly to wind farm owners fell year-on-year despite higher volumes of unused wind energy, but the cost of paying gas stations to replace lost wind power more than doubled, nearing £210 million. Analysts attribute this to the increase in wholesale gas prices over the past year.
Wasted Wind, a tracking initiative operated by employees of Octopus Energy, supports the introduction of regional electricity (“zonal”) pricing to reflect network constraints more accurately. The idea is that if power were cheaper in regions such as Scotland, where wind output is plentiful, energy-intensive businesses (such as data centres) would be incentivised to set up there, thereby reducing the need to “curtail” or switch off wind farms.
“Households in Britain pay some of the highest energy prices in Europe, while billions are spent shutting off cheap, green power,” said Clementine Cowton, external affairs director at Octopus Energy. “Zonal pricing would cut costs, slash the need for new pylons, and give renewable-rich areas like Scotland and northern England among the cheapest prices in Europe.”
Meanwhile, the National Energy System Operator reports that the costs of paying wind farms to shut down have halved on its own metrics, and that it is constantly exploring new ways to balance supply and demand.
Sam Richards, from pro-growth group Britain Remade, described the current system of constraint payments as “out of control” after the threshold of a quarter of a billion pounds was reached twice as quickly as last year. He added, “The government needs to fix this urgently … Instead of wasting wind, we should be letting cheap power cut energy costs directly and encourage new factories or data centres to locate here.”
The government is facing pressure on multiple fronts to facilitate a more efficient electricity network – one that can handle the accelerated pace of wind farm construction, reduce reliance on gas peaking plants, and help stabilise energy bills for businesses and households alike.
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Lack of grid capacity pushes ‘wasted wind’ costs to £250m