UK power plants awarded substantial compensation to ensure electricity supply throughout the upcoming winter | Energy Sector

div>More UK gas plants are set to receive windfall payments this winter to support electricity supply, following large payouts given to generators last winter. The UK’s energy system operator forecasts that winter power supplies will be the highest in five years, partially due to gas plants’ increased willingness to generate electricity during the colder months. Gas plants typically operate when wind and solar power are insufficient, and can demand high fees during cold still periods when energy demand peaks. In early January, two gas power plants in Hertfordshire and Flintshire were paid a total of £17.8 million to operate during peak electricity demand. The payments, up to 100 times higher than normal, have ignited industry concerns over potential excessive payments for gas power plants when renewable energy output is low. The higher availability of gas plants for the upcoming winter does not necessarily mean a greater reliance on gas power or record-high payments, as the National Energy System Operator (Neso) determines which power plants and sources to utilize to balance supply and demand. Additionally, the UK will have increased access to electricity imports through the Greenlink power cable connecting to Ireland and expanded battery power, according to Neso. Neso anticipates sufficient energy margins throughout the winter and considers European energy supplies to be adequate. Energy Secretary Ed Miliband emphasized the need for a transition away from fossil fuels, rejecting concerns over the feasibility of reaching the 2030 target of 95% low-carbon power, and promising to create jobs in offshore wind industries as part of the fight against net zero opponents.

Source: https://www.theguardian.com/environment/2025/jun/18/uk-gas-plants-in-line-for-large-windfall-payments-to-keep-lights-on-this-winter