Wind farm paid £1.2 million to produce no electricity

A wind farm has been paid £1.2 million not to produce electricity for eight-and-a-half hours.

By Edward Malnick and Robert Mendick

9:00PM BST 17 Sep 2011

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The amount is ten times greater than the wind farm’s owners would have received had they actually generated any electricity.

The disclosure exposes the bizarre workings of Britain’s electricity supply, prompting calls last night for an official investigation into the payments system.

The £1.2 million will go to a Norwegian company which owns 60 turbines in the Scottish Borders.

The National Grid asked the company, Fred Olsen Renewables, to shut down its Crystal Rig II wind farm last Saturday for a little over eight hours amid fears the electricity network would become overloaded.

The problem was caused by high winds buffeting the country in the wake of Hurricane Katia.

In total, 11 wind farms were closed down last week, receiving a total of £2.6 million. The money – detailed in calculations provided by National Grid – will be added on to household bills and paid for by consumers.

As Britain pushes for more and more wind farms, critics claim the size of the ‘constraint payments’ will grow accordingly – raising serious concern about the long-term suitability of wind power to meet Britain’s energy needs.

Crystal Rig received by far the largest single payment because the National Grid runs an auction, inviting energy companies to say how much they want in compensation for switching off.

Crystal Rig’s owners asked for £999 per megawatt hour of energy they would have produced had they been switched on. Incredibly, the figure Crystal Rig had bid was accepted by the National Grid.