The cost of paying wind farms to switch off during periods of gale-force winds and grid congestion has reached £1 billion this year, a figure achieved two months earlier than in 2025. These so-called 'constraint payments' are ultimately passed on to consumers through energy bills.
The issue arises when wind farms generate more power than the national grid can transport, particularly from remote areas like Scotland to regions with higher demand, such as the south of England. In such instances, wind farms are paid to cease operations, while more expensive gas-fired power plants closer to urban centers are activated to compensate. These constraint payments, introduced in 2010, are compensation for wind farm operators whose transmission service agreements are affected.
This year's total has hit the £1 billion milestone earlier than usual, partly due to increased gas prices following geopolitical events. The total for 2025 neared £1.5 billion, and current projections suggest 2026 will set a new record. The National Energy System Operator (Neso) forecasts that constraint costs could escalate to £3.2 billion over the next 12 months and potentially reach £8 billion by 2030.
The website Wasted Wind, supported by the energy supplier Octopus Energy, tracked the £1 billion figure. Octopus Energy founder Greg Jackson described the current system as "bonkers," advocating for local use of wind power to provide cheaper energy to nearby communities instead of incurring costs for discarding the generated electricity. He suggested this approach could offer relief to households and businesses facing rising living costs.
Multibillion-pound upgrades to reinforce the national grid are underway. However, these projects can temporarily exacerbate the problem by requiring cables to be taken out of service, further limiting transmission capacity. Neso had previously warned that the existing electricity market was not designed for the demands of net-zero emissions and had called for regional pricing adjustments. These proposals were reportedly rejected under the previous government due to concerns about creating a 'postcode lottery' for energy costs.
A Neso spokesperson stated that the organization is committed to minimizing constraint costs but emphasized that long-term reductions depend on market reforms and continued network expansion, factors outside of Neso's direct control.