The UK has spent more than £1.03 billion on payments to wind farms that have been asked to reduce their output this year.
Grid constraints continue to limit the amount of renewable electricity that can be transported and stored.
Wind supplied around 32% of the UK’s electricity in 2025, making it the country’s largest source of power. However, much of the generation is concentrated in Scotland, while demand is higher in areas further south.
When transmission networks cannot accommodate the available electricity, the National Energy System Operator (NESO) can instruct wind farms to reduce generation and compensate them for lost revenue through constraint payments.
The costs are already more than £300 million higher than at the same point last year. Industry forecasts suggest annual payments could rise to more than £3 billion by 2027 if grid capacity does not keep pace with renewable generation.
Greater investment in electricity transmission and energy storage could help reduce wasted wind power, allowing more renewable electricity to reach consumers when it is needed.
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