Constraint Payments for Wind Farms: an example of market failure!
Author: Dr Alan Jones, PhD., C.Eng., F.I.E.T. 29 November 2021 Executive Summary Many readers may assume that constraining generation from a free, natural, unlimited and renewable resource such as wind would have little impact on the electricity consumer, but in practice the reverse is true. Unlike constraining fossil-fuel generation, constraining Scotland’s distributed wind fleet increases the cost to the consumer and as Great Britain (GB) transitions to Net Zero this burden on the consumer is expected to increase significantly over the next decade as more onshore and offshore wind comes on stream in Scotland. Fixing the problem by making the GB transmission network fit for purpose, which in itself is a challenging, lengthy and expensive operation, but a Net Zero strategic priority, will also cost the consumer heavily - an estimated additional 7% on the average annual electricity bill over the next 40 years. Laying to one side the need for a move to Net Zero this discussion p