The cost of managing constraints on Britain’s electricity network has surged by 60% in the first two months of 2025, reaching £253 million, according to an analysis by Wasted Wind. This marks a sharp increase from £158 million during the same period last year, as wind farms were paid to switch off while gas plants were compensated to replace them.
The spike in costs is primarily due to Britain’s rapidly expanding offshore wind sector, which has outpaced the development of transmission infrastructure. Power generated in northern Scotland—where electricity demand is low—often cannot be efficiently transported to higher-demand regions like England. When bottlenecks occur, the National Energy System Operator pays wind farms to curtail production and simultaneously compensates gas-fired power plants, typically located closer to consumers, to make up the shortfall.
Gas Replacement Costs Drive Spending Surge
While direct payments to wind farm operators fell despite higher volumes of unused wind energy, the cost of replacing lost wind power with gas generation more than doubled, nearing £210 million. Analysts point to rising wholesale gas prices as the main driver behind the increase.
The Wasted Wind initiative—run by employees of Octopus Energy—has called for an overhaul of the pricing system, advocating for the introduction of regional electricity pricing or “zonal pricing.” This model would adjust electricity costs based on regional supply and demand, incentivizing energy-intensive industries to relocate to wind-rich areas like Scotland, thereby reducing the need for costly curtailment payments.
“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 some of the cheapest electricity prices in Europe.”
Calls for Urgent Government Action
The National Energy System Operator has pushed back on some of the criticism, stating that payments to wind farms have actually halved based on its own metrics and that it is continually working on new ways to balance supply and demand more efficiently.
However, Sam Richards of the pro-growth group Britain Remade described the soaring costs as “out of control,” warning that the government must act urgently to fix the system.
“Instead of wasting wind, we should be using cheap power to cut energy costs and attract new industries like data centres and factories to these regions,” Richards said.
The government now faces mounting pressure to reform Britain’s electricity network, ensuring it can handle the accelerating growth of wind power, reduce dependence on gas-fired plants, and stabilize energy prices for consumers. With the cost of constraint payments reaching a quarter of a billion pounds in record time, industry leaders and policymakers are urging swift action to unlock the full potential of Britain’s renewable energy resources.
