UK grid costs set to soar even higher. Grid integration costs are already forecast to triple from £8bn to £25bn by 2030/31. Now NESO is asking for another £89bn of grid spending beyond 2030. Why this matters for your bills...A thread 🧵 (1/9)
Grid integration costs consist of backup from the capacity market, grid balancing and grid expansion. All set to soar over the next few years. (2/9)
Capacity Market costs exploded from under £10m in 2017 to over £1.6bn by 2026. Monthly costs forecast to double to £250-370m in October 2026. (3/9)
Grid balancing costs already over £3.1bn for the last financial year and on an upward trend. Set to rise to £6.4-£8.3bn by 2030. (4/9)
Transmission charges to triple from £4.2bn to over £13.6bn by 2031. NESO seeking extra £89bn grid spending beyond 2030. (5/9)
NESO’s grid map shows the main cost is integrating intermittent renewables, especially offshore wind. These costs are added to everyone’s electricity bills. (6/9)
UK already has the highest industrial electricity prices in the developed world. Further grid cost rises will push bills higher and hurt competitiveness. (7/9)
This is unsustainable. To deliver competitive electricity prices, costs must be slashed. Cutting £30bn from a grid delivering 300TWh would reduce costs by 10p/kWh. This is the scale of cuts required to improve competitiveness and save British industry (8/9)
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(9/9) davidturver.substack.com/p/grid-costs-s…
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