A record £35 million was paid in balancing costs on Tuesday after strong winds generated more electricity than the UK grid could carry, The Telegraph reports.
The National Energy System Operator (NESO) ordered wind farms in the north of the UK to reduce generation, with gas-fired power stations brought online to replace some of the electricity.
The payments, known as balancing costs, are ultimately recovered through energy bills. Last Tuesday’s £35 million total exceeded the previous daily record of £32 million set on Friday and was around three times the typical daily cost.
A NESO spokesperson confirmed the pay out but insisted the necessary and correct action was taken.
They said: “Where network constraints arise, Neso must take action to maintain security of supply and protect the safe operation of the electricity network.
“Balancing the national electricity system is not optional, which is why Neso takes action to keep it secure second by second and while we are working hard to keep costs as low as possible for consumers, it would be wrong to draw wider conclusions from a single day’s activity.”
The UK spent almost £1.5 billion on wasted wind power in 2025, up from £1.23 billion in 2024. Some experts have warned annual costs could reach £8 billion by 2030 without greater grid capacity.
NESO has identified faster delivery of transmission infrastructure as the biggest opportunity to reduce balancing costs. New high-voltage cables would allow more electricity generated by renewable projects in northern Scotland to be transported to demand centres further south.
However, proposed pylons and substations have faced opposition from rural communities.
The costs highlight the challenge of expanding renewable generation faster than the electricity network needed to transport it. Around £50 of the average annual domestic electricity bill is currently attributed to balancing payments.
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