A UK newspaper report has claimed that wind power developers are being deterred from pushing schemes forward after National Grid demanded hefty financial guarantees to allow connection to the power network.

The Daily Telegraph newspaper reports that the financial guarantees – known as ‘final sum liabilities’ – could total up to GBP500 million for the grid operator, which is determined to protect itself against making investment in capacity enhancement that is subsequently unused.

The newspaper reports that companies that are successful in connecting to the grid will get their liabilities refunded, but the wind power industry is concerned that the imposition of the charges in putting additional strain on the bottom lines of windfarm developments before a single rotor blade has turned.

In the face of this pressure, National Grid is considering introducing phased charges to help ease some of the burden, the report says, and it is advising wind power firms to site their scheme in clusters to benefit from single main connection to the grid.