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Big Take

Why Wind Farms Are Paid Millions to Turn Off

Jan 31, 2024
16:16
Snipd AI
UK wind farms are sometimes paid to power off due to the unpredictability of wind. Investigation reveals that wind farm operators overestimate production forecasts, resulting in payment for power they wouldn't have produced. Consumers pay millions of pounds for this problem, which could escalate with the UK's plan to increase wind turbines. The surge in wind power is challenging the electricity grid. Overstated energy production by wind farms leads to industry and consumer implications. The energy transition presents challenges and concerns, but also combats climate change.
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Quick takeaways

  • Some wind farm operators in the UK routinely overestimate their production forecasts, resulting in unnecessary curtailment payments and costing consumers millions of pounds per year.
  • The overestimation of wind power output in the UK has led to additional costs for consumers amounting to 800 million pounds in 2022, highlighting the need for improved forecasting and tighter regulation in the green energy sector.

Deep dives

Wind Power Surges in the UK Driven by Subsidies

Over the last few decades, wind power capacity in the UK has significantly increased, largely due to deliberate policy measures and subsidies from the UK government. Subsidies were provided through long-term contracts that guaranteed revenue for wind power producers. As a result, wind power capacity has tripled, with over 40% of the UK's power being generated by wind. However, an investigation by Bloomberg revealed a problem within the green power industry. It was found that around a third of the wind farms overestimate their power output by at least 10%, leading to unnecessary curtailment payments and costing consumers millions of pounds per year.

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