Britain’s grid balancing costs have jumped 25% this year, hitting £2.1 billion between January and September — the fastest rise since the 2022 energy crisis.
New analysis by the Nuclear Industry Association (NIA) using National Energy System Operator (NESO) data shows the country reached the £2 billion mark sooner than in any year over the past decade.
The spike reflects Britain’s heavy reliance on gas to plug gaps in variable generation. Gas-fired plants still set the power price 97% of the time — the highest rate in Europe.
With gas costs swinging wildly, households and businesses are footing the bill.
Balancing costs are what NESO pays to keep supply and demand aligned in real time. When renewables overproduce or underperform, gas plants are brought online near demand centres. That adds huge costs without creating any new capacity or jobs.
Energy UK estimates these system costs add £32 to an average household bill. The trade body warns they could double by 2030 if the system stays tied to fossil fuels.
The NIA says the answer is more predictable, low-carbon baseload power from nuclear.
Tom Greatrex, Chief Executive of the NIA, said: “Every pound spent on balancing costs adds to bills, but creates no jobs, generates no power nor any long-term value. Consumers are paying the price for historic underinvestment in nuclear.”
He said investment in new projects such as Sizewell C and a fleet of small modular reactors would provide “dependable, low-carbon power for generations” while creating high-skilled jobs and improving energy security.
The NIA argues that building more nuclear capacity would cut Britain’s reliance on gas and stabilise prices.
Baseload generation, it says, can balance variable renewables like wind and solar without triggering expensive system interventions.
With grid costs spiralling and gas setting the price almost all the time, the case for steady, price-predictable nuclear energy is becoming harder to ignore.
Step up nuclear to cut balancing costs appeared first on Energy Live News.