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Britain will waste more than £16 billion this decade after regulatory and planning failures saw Scotland produce more wind energy than can be transported south.
The costs, calculated by think tank Carbon Tracker, are expected to find their way into higher electricity bills for cash-strapped households and businesses.
The problem arises because, although Britain is a wind power superpower, there are not enough cables to bring renewable electricity from Scotland, where most of it is produced, to England, where most of it is needed.
When bottlenecks arise, wind farms are paid to switch off their turbines, and petrol stations in England are paid extra to supply the electricity they need.
The system, known as containment, cost more than £700m in 2023, with a further £140m spent in January and February this year alone.
Problem: There are not enough cables to bring renewable electricity from Scotland to England
But costs are expected to skyrocket as offshore wind farms continue to grow while cable construction remains mired in drawn-out approval processes.
“Wind reductions could increase fivefold by 2030, costing £3.5 billion and generating electricity waste equivalent to the annual consumption of more than five million households,” says Lorenzo Sani of Carbon Tracker.
The price tag comes mainly from payments to gas suppliers, who have already earned almost £1.5 billion by ensuring Britain can keep the lights on when transmission cables can’t cope with Scottish winds.
Planning failures don’t just hit Britain’s pockets, however. They also mean that huge amounts of green energy – up to 20 percent in some months – are being replaced by fossil fuels. Steps are being taken to address the problem.
Last week, regulator Ofgem said it would fast-track a so-called ‘electricity superhighway’ between Scotland and England with a further £2 billion of funding. The proposed submarine cables could transport wind-generated electricity between East Lothian and County Durham.
And earlier this year, electricity grid operator ESO unveiled Beyond 2030, a £58 billion plan to ensure energy can be transported more effectively across Britain in the future. After 2030, it is estimated that electricity demand will be 65 percent higher in 2035 than it is today, fueled by a growing reliance on electric cars and heating.