Remote wind farm’s £300m to stop producing too much power

By the Editorial Team · Monday, September 14, 2026

The Moray East offshore wind farm near Wick has experienced frequent output curtailments—up to 60% this year—due to inadequate grid capacity, resulting in over £321 million in constraint payments from UK consumers since 2021. This highlights the urgent need for major transmission upgrades to accommodate renewable energy and avoid escalating costs, as current limitations force reliance on expensive gas generation despite the UK’s clean energy targets.

Off the coast of Wick in northern Scotland, the Moray East offshore wind farm has faced significant operational constraints since opening in 2021. Initially celebrated as a key contributor to the UK’s clean energy transition, with the potential to supply 40 percent of Scotland's household electricity demand, the facility has been operating below capacity for a substantial portion of the time. Analysis by Octopus Energy shows that Moray East’s turbines have been curtailed nearly 40 percent of the time since commissioning, rising to 60 percent this year, due to the grid’s inability to absorb all the electricity generated.

This curtailment, known as constraint payments, arises when wind farms are asked to reduce output because the electricity transmission system cannot accommodate excess power. Over the past five years, UK consumers have paid more than £321 million to Moray East’s operator to lower its production— the highest such payment to any wind farm in the country. This issue reflects broader challenges across Britain's energy system, with total payments topping £1.2 billion this year to restrain wind generation and increase reliance on gas-fired power plants, despite government targets to transition the UK to nearly all low-carbon electricity by 2030.

The National Audit Office warns that these constraint costs could escalate to an estimated £7.8 billion annually by 2030, potentially adding about £100 to each household’s yearly energy bill. A spokesperson from the Department for Energy Security and Net Zero attributed these expenses to long-standing underinvestment in the electricity network, which has left the system reliant on costly fossil fuel backup generation.

Geographical factors compound the problem. The highest concentration of wind power is located in northern Scotland, far from major demand centers in the south. Moray East, positioned near the sparsely populated Highland Council area, lacks sufficient grid infrastructure to transmit its full output to consumers. Upgrading the transmission network to relieve these bottlenecks remains a key priority but has lagged behind the pace of wind farm development.

The origins of this issue date back to a 2010 government policy known as Connect and Manage. This initiative permitted wind farms to connect to the grid ahead of necessary transmission upgrades, with payments provided for the times they had to curtail output. The policy aimed to prevent delays in renewable energy deployment but underestimated the long-term costs, expecting only minimal impacts on household bills.

Experts highlight that grid enhancements have not matched the growth in wind capacity over the past decade and a half. Adam Bell, a former government energy adviser, compared the situation to past challenges in the water sector, where regulatory constraints hindered essential infrastructure investment, leading to inefficiencies and higher future costs.

Other Scottish offshore wind farms such as Moray West, Seagreen, and Neart na Gaoithe have also received substantial constraint payments, reflecting the systemic challenge of transmitting renewable energy from remote generation sites to consumption centers.

Regulator Ofgem has initiated investigations into potential overcharging by some wind farm operators, including Moray East, for curtailment services. Ocean Winds, the owner of Moray East, declined to comment on the matter.

The constraints faced by Moray East illustrate the complex balance between accelerating green energy deployment and ensuring the infrastructure can efficiently integrate renewable sources into the national grid. Without significant investment to expand transmission capacity, the UK risks incurring growing costs from paying generators not to produce clean electricity while still relying on fossil fuel backup.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.