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Wind Farm Behind Massive Blackout Awarded £100,000 In Compensation Day After Powercut

The Daily Telegraph

The wind farm which contributed to a massive blackout was awarded nearly £100,000 in compensation after being ordered to reduce its output the day immediately after the power cut, the Telegraph can reveal.

Nearly one million homes and businesses were left without electricity last Friday when Hornsea Wind Farm and Little Barford gas-fired station went off grid within minutes of each other.

After getting back online, National Grid ordered Hornsea to reduce the electricity it supplied the network on Saturday night and Sunday morning entitling its owners, Orsted, to compensation.

Although National Grid, a private FTSE 100 company, insisted the decision to cut Hornsea’s supply was not related to any role it may have played in the earlier outage, the restrictions were the first to be imposed on the plant since it went live in February.

National Grid, which owns the country’s electricity infrastructure, makes millions of pounds of so-called “constraints compensation” payments every year. The system pays out if a supplier with a contract to produce a certain amount of power is then told less is required. While this affects home and business owners’ bills, National Grid insists it is the most effective way of cutting costs because it avoids the need to build more energy infrastructure. 

The payout has emerged as National Grid prepares to reveal to energy regulator Ofgem and ministers what triggered the blackout.

People waiting inside King’s Cross station during the powercut CREDIT: PA

The report is expected to focus on how the failure of the generators – one offshore in the North Sea and the other in Bedfordshire – unleashed such a massive power failure across huge swathes of the UK.

An energy expert claimed it is a “striking coincidence” that Hornsea was told to reduce supply in the two days immediately after it apparently contributed to the once in a decade power cut, particularly having never been asked to cut power before.

Dr John Constable, director of the Renewable Energy Foundation, a charity which analyses the green energy market, said: “This compensation raises important questions about the way wind farms receive payment for reducing output, particularly so soon after being involved in a blackout which is still under investigation.

“Our analysis shows there was a drop in system frequency to below normal operating limits on Saturday night, just before Hornsea was told to reduce output. It raises the further question of whether this event was another near-miss.”

A National Grid spokesman said it continuously “balances the system second by second”, adding how limiting Hornsea’s supply was “business as usual” and not related to any involvement in the blackout.

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