Business · Energy & Commodities · 4 hrs ago

UK Grid Balancing Costs Hit Record Highs Amid Transmission Bottlenecks

UK Grid Balancing Costs Hit Record Highs Amid Transmission Bottlenecks

The UK is paying record sums to keep its electricity grid balanced as power struggles to reach where it is needed.

Many of the country’s wind farms are in Scotland, while major demand centres, including London, are farther south.

Transmission lines have not kept pace with wind farm construction, so abundant generation in one area cannot always supply another.

On one day, urgent imports added costs equivalent to $51.2 million, even as the UK exported electricity generated in the south to neighbouring countries.

The previous month’s grid-balancing bill reached about £500 million, or $666 million, and could be surpassed this month.

The bottlenecks are adding costs despite available power, contributing to the UK’s high electricity bills.

There is no quick fix, and some costs from the location of existing wind farms may last for generations.

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Jason MannManaging director at FTI Consulting
These wind farms were built with very limited consideration of where that electricity would be consumed
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Those costs are locked in for generations
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