Grid Balancing Costs Hit £2.6 Billion A Year

By Paul Homewood

 

One of the hidden costs of the transition to renewables is the cost of balancing the grid.

NESO are projecting a cost of £2667 million this financial year. Last year they originally estimated £3190 million, but this was overestimated and £864 million is being clawed back this year.

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https://www.neso.energy/industry-information/charging/balancing-services-use-system-bsuos-charges

Taken over the two years as a whole, the total BSU0S charge averages £2960 million. That works out at £10.66/MWh.

NESO’s data shows how these costs have rocketed in the last decade.

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[2024 and 2025 averaged together]

In April 2014, for instance, the charge was £1.84/MWh.

So since then, costs have risen by £8.82/MWh, equivalent to £2460 million a year.

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June 26, 2025 at 06:00AM

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