GlobalData: UK grid constraint payments to exceed £1.8bn by 2025

Rising costs stem from power grid limits on managing Scotland’s wind energy flow to English cities, requiring balance payments.

The surge in costs is attributed to the limitations in the power grid’s capacity to handle the growing share of renewable energy, particularly wind power from Scotland to cities in England, necessitating payments to manage the supply and demand balance.

The constraint payments are projected to increase from £1.5bn in 2024 – an estimate from FTI Consulting – to more than £1.8bn in 2025, based on data from the UK’s nationalised energy system operator the National Energy System Operator (NESO).

Full article here (source): UK grid constraint payments to exceed £1.8bn by 2025 – GlobalData