Are we in for a cold winter in the energy markets?
October 1, 2025
GLEG UK Energy Market Update…
October 6, 2025
Recent data shows that the UK has paid over £1 billion this year to curtail (i.e. switch off) wind turbines, despite high wind output. That eye-watering figure exposes a fundamental mismatch in our energy system: we are generating clean power that we can’t fully use — and passing the cost on to consumers.
What’s Going On?
- Why turbines get shut off When wind farms generate more electricity than local grid capacity can transport, the system operator orders them to stop output. At the same time, more expensive generation (typically gas plants) is turned on in areas of demand. That paradoxical approach leads to wasted energy and higher costs.
- Year-on-year growth in curtailment costs In 2024, the same point in the year had cost ~£734 million. Now we’ve already exceeded £1 billion.
- Bottlenecks in the grid A major culprit is inadequate transmission infrastructure, especially between Scotland (where much of the wind is generated) and demand centres in England. Without timely upgrades to cables, storage, or interconnectors, curtailment will remain a drag.
- Impacts on households The cost of managing these grid constraints is reflected in consumer bills — an added £15 or more annually for an average household.
Political Fallout & Policy Framing
Ed Miliband’s plan to double onshore wind capacity by 2030 is being challenged as fiscally imprudent given current grid inefficiencies. Critics warn the cost of curtailment could swell to £8 billion per year under his proposed scale-up.
At the same time, Labour’s outright ban on fracking has drawn fire from opponents who argue that domestic gas is a necessary “bridge fuel” to stabilise costs.
Takeaway
That £1 billion spent curtailing wind is a stark reminder: generating clean energy is only half the battle. Without a grid and market structure aligned to renewable realities, the system becomes wasteful and costly. The opportunity lies in policy, investment, and innovation — turning wasted wind into usable, affordable, and sustainable power.