{"id":803669,"date":"2026-10-15T19:00:13","date_gmt":"2026-10-15T19:00:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/803669\/"},"modified":"2026-10-15T19:00:13","modified_gmt":"2026-10-15T19:00:13","slug":"cost-of-balancing-great-britains-power-grid-reaches-nearly-50m-a-day-energy-industry","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/803669\/","title":{"rendered":"Cost of balancing Great Britain\u2019s power grid reaches nearly \u00a350m a day | Energy industry"},"content":{"rendered":"<p class=\"dcr-1s160rg\">The cost of balancing Great Britain\u2019s power grid has soared to near-record highs of almost \u00a350m a day after windfarms were turned off because of bottlenecks in transmitting power around the country.<\/p>\n<p class=\"dcr-1s160rg\">The grid operator paid \u00a347.9m on Wednesday to turn windfarms off in areas with an oversupply of electricity and turn gas plants on in areas where supplies were tight.<\/p>\n<p class=\"dcr-1s160rg\">The costs, which are levied <a href=\"https:\/\/www.theguardian.com\/business\/2026\/sep\/11\/speed-up-electricity-grid-upgrade-or-else-face-higher-bills-warns-uk-watchdog\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">on to household energy bills<\/a>, included a \u00a31.6m payment for one half-hour period, and were some of the highest recorded since the early months of the Ukraine crisis in 2022.<\/p>\n<p class=\"dcr-1s160rg\">They add to the increasing costs of balancing the grid, which reached a total of \u00a3505m in September alone, the highest monthly cost recorded, and are expected to reach \u00a33.2bn over the next year.<\/p>\n<p class=\"dcr-1s160rg\">The costs underline the growing concerns over the pace of <a href=\"https:\/\/www.theguardian.com\/business\/ng-interactive\/2026\/sep\/13\/mapped-150bn-megaproject-aims-to-protect-britain-from-energy-shocks\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">Great Britain\u2019s \u00a3150bn power networks upgrade<\/a>, which is failing to keep up with new renewable energy projects being connected to the grid.<\/p>\n<p class=\"dcr-1s160rg\">Overall, windfarms and hydropower plants with about 9 gigawatts of capacity were paid to not generate on Wednesday, according to the consultancy LCP Delta, enough to power more than 8m typical households.<\/p>\n<p class=\"dcr-1s160rg\">Instead, the grid operator was forced to pay for a string of gas and biomass plants to fire up and bought more electricity imports from Europe via high-voltage subsea power cables.<\/p>\n<p class=\"dcr-1s160rg\">The record costs have come to light days after the National <a href=\"https:\/\/www.theguardian.com\/environment\/energy\" data-link-name=\"in body link\" data-component=\"auto-linked-tag\" rel=\"nofollow noopener\" target=\"_blank\">Energy<\/a> System Operator (Neso) was forced to call for \u201clast resort\u201d emergency assistance from its counterpart in France, which agreed to send last-minute power supplies to the UK on Monday and Friday last week.<\/p>\n<p class=\"dcr-1s160rg\">\u201cThe system overall wasn\u2019t tight in terms of power supplies,\u201d said Shivam Malhotra, the head of power trading at LCP Delta. \u201cIt\u2019s the age-old story of a lack of infrastructure to transport power to where it\u2019s needed, leading to lots of windfarms being turned off.\u201d<\/p>\n<p class=\"dcr-1s160rg\">Typically, windfarms in Scotland are paid to turn off because there is not enough high-voltage cabling connecting the country to areas of growing electricity demand further south.<\/p>\n<p class=\"dcr-1s160rg\">\u201cTo resolve the energy needs in the south of the country Neso had to use one of their last resorts. It\u2019s quite surprising for this time of year,\u201d Malhotra said.<\/p>\n<p class=\"dcr-1s160rg\">During the summer Neso faced severe grid challenges when a high-pressure heat dome led to a drop in renewable energy output and surging electricity demand to power air conditioning and refrigerators.<\/p>\n<p class=\"dcr-1s160rg\">Neso was forced to bring in independent investigators to look into whistleblower claims that its staff were involved in a cover-up of a near-blackout during record high temperatures in late June.<\/p>\n<p><a data-ignore=\"global-link-styling\" href=\"#EmailSignup-skip-link-15\" class=\"dcr-76akua\">skip past newsletter promotion<\/a>Free newsletter |Every weekday<\/p>\n<p class=\"dcr-vf9hps\">Sign up to Business Today<\/p>\n<p class=\"dcr-djbwnz\">Get set for the working day \u2013 we&#8217;ll point you to all the business news and analysis you need every morning<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/10\/1792090813_81_500.jpg\" alt=\"\" loading=\"lazy\" decoding=\"async\" class=\"dcr-gx9601\"\/><\/p>\n<p id=\"EmailSignup-skip-link-15\" tabindex=\"0\" aria-label=\"after newsletter promotion\" role=\"note\" class=\"dcr-76akua\">after newsletter promotion<\/p>\n<p class=\"dcr-1s160rg\">The accusations, which were <a href=\"https:\/\/www.linkedin.com\/feed\/update\/urn:li:activity:7481433263375572992\/\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">raised in parliament last week<\/a> by the shadow energy secretary, Claire Coutinho, included claims that senior bosses at Neso were \u201crisking blackouts to protect Neso\u2019s reputation\u201d.<\/p>\n<p class=\"dcr-1s160rg\">Fintan Slye, Neso\u2019s chief executive, told an industry conference on Wednesday that there would be \u201clessons to be learned\u201d coming out of a review into that period by the industry regulator <a href=\"https:\/\/www.theguardian.com\/business\/ofgem\" data-link-name=\"in body link\" data-component=\"auto-linked-tag\" rel=\"nofollow noopener\" target=\"_blank\">Ofgem<\/a>.<\/p>\n<p class=\"dcr-1s160rg\">Asked how he thought Neso handled the situation, Slye said: \u201cThrough that period, no customers were disconnected [and] frequencies stayed within statutory limits. But undoubtedly, it was a really challenging period for the system and right across Europe we saw power systems \u2026 under strain.<\/p>\n<p class=\"dcr-1s160rg\">\u201cI think the control room and teams that were in it did an absolutely superb job managing what was a really difficult situation through the week.\u201d<\/p>\n<p class=\"dcr-1s160rg\">A Neso spokesperson said Great Britain\u2019s energy supplies were \u201csecure\u201d during both calls for emergency assistance, and that the \u201cseparate incidents\u201d were \u201cnot signs of a wider problem with Britain\u2019s electricity system\u201d.<\/p>\n<p class=\"dcr-1s160rg\">\u201cIn both cases, our control room responded quickly to changing conditions and used established tools to keep the system running securely,\u201d they said.<\/p>\n<p class=\"dcr-1s160rg\">\u201cWhile Neso continues to deliver savings through operational reforms and innovation, the single biggest opportunity to reduce balancing costs is the timely delivery of new infrastructure by transmission owners, which could halve balancing costs by the end of the decade.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The cost of balancing Great Britain\u2019s power grid has soared to near-record highs of almost \u00a350m a day&hellip;\n","protected":false},"author":2,"featured_media":803670,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,59,56,54,55],"class_list":["post-803669","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-gb","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/803669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=803669"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/803669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/803670"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=803669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=803669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=803669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}