Wind power in the UK has faced criticism for years, with detractors claiming it wastes subsidies and is inefficient. However, a recent study by University College London (UCL) reveals the opposite: between 2010 and 2023, wind energy has generated approximately £104.3 billion in net benefits for British consumers.
The research team employed a model known as the Long-Term Merit Order Effect to simulate what would have happened if the UK had not developed wind power over the past fifteen years and had instead continued to build gas-fired power plants. The results indicate that the construction of these new gas units and the fuel required for their operation would have significantly increased overall electricity costs. Wind power not only replaced expensive gas-generated electricity but also avoided larger investments and fuel expenditures.
Overall, wind power has led to a reduction in electricity prices of about £14.2 billion over thirteen years, benefiting consumers directly in the UK. The study also highlights that the rapid development of wind energy in Europe has suppressed natural gas demand and prices across the region. As part of the European gas market, the UK has indirectly saved approximately £133.3 billion. Without these wind energy investments, Europe’s daily gas demand would have increased by over 270 million cubic meters, equivalent to the shortfall caused by Russia’s supply cuts in 2022, resulting in even higher gas prices.
The research also reveals an unusual distribution of benefits: while the subsidies for wind power are borne by electricity consumers, the suppression of gas prices means that the largest beneficiaries are households and industries that use gas for heating. In total, gas users have received over 80% of the benefits, while electricity users account for less than 20%. This highlights the inequity of the current ‘green levy’ system: those who pay contribute little to the benefits, while those who do not pay reap the rewards.
Regarding the commonly cited issue of ‘curtailment waste,’ the figures show that the problem is far less severe than imagined. According to data from the National Grid and OFGEM, between 2010 and 2023, the compensation paid for wind power curtailment in the UK amounted to approximately £4 to £5 billion, representing only about 4% to 5% of the overall economic benefits of wind power. This is a cost that should be minimized but does not affect the overall gains. With upgrades to the grid and increased investments in energy storage, the capacity for wind power transmission and scheduling will continue to improve, and the issue of ‘curtailment’ is expected to gradually ease.
UCL’s research reminds us that wind power is a long-term public investment that not only provides clean energy but also reduces energy costs for the entire region. The truly expensive choice is not wind, but the missed opportunity to harness it.
