Growing energy demand in Scotland could help lower long term bills, says NESO chief executive.
NESO has today (13 May 2026) said that growing electricity demand in Scotland could help lower long‑term energy bills for consumers across Great Britain.
Speaking in Glasgow, NESO Chief Executive Fintan Slye said it could make sense for large electricity users, including AI data centres, to be located in Scotland so they can be powered by the country’s abundant renewable energy.
Scotland generates large volumes of clean, home‑grown electricity. At times, the electricity network does not have enough capacity to move all of this power to where it is needed. When this happens, wind farms may be paid to reduce output, while power stations elsewhere are paid to increase generation to keep the system balanced. These balancing costs are ultimately paid for by consumers.
Creating more demand closer to where renewable power is generated could reduce the need for both actions. This would help keep turbines turning, lower overall system costs and support a more affordable and reliable electricity system.
Decisions on where and when major new demand connects need to be part of a joined‑up, whole‑system approach to planning the energy system. NESO is developing a series of long‑term strategic plans out to 2050 for Scotland and the rest of Great Britain, examining how demand, networks and generation can work together more efficiently.
Fintan Slye, Chief Executive Officer of NESO:
“Scotland produces significant amounts of clean, home‑grown electricity that is vital for Britain’s energy security.
“There is the opportunity to harness that energy to fuel growth in Scotland. With clearer, long‑term planning of where demand grows – including for infrastructure like data centres – we can actually reduce pressure on the network, cut costs paid by consumers and make better use of our renewable energy.”
NESO is looking at data centre location as part of its role in planning Britain’s future energy system and reforming how new demand connects to the network. NESO analysis suggests that, with sufficiently strong locational signals, up to 20% of future data centre demand could be located in Scotland, helping to reduce network constraints.
As well as helping to lower costs, data centres could also provide flexibility to the electricity system, supporting reliability as more renewable power connects.
Mr Slye was in Glasgow to speak at the All‑Energy Exhibition and Conference, before visiting Whitelee Wind Farm on Eaglesham Moor, the UK’s largest onshore wind farm, operated by ScottishPower Renewables.
At Whitelee, he discussed progress on clean power with Charlie Jordan, Chief Executive Officer of ScottishPower Renewables, and Gillian Noble, Managing Director for Onshore Origination and Development.
Charlie Jordan, CEO, Scottish Power Renewables:
“Whitelee windfarm, one of the largest in Europe, is a jewel in the UK’s renewables crown, powering Greater Glasgow and beyond with clean, green power for almost two decades. It was a pleasure to welcome Fintan and discuss the future of renewables, particularly as we look ahead to repowering some of these older onshore sites to retain the vital wind capacity and help drive future economic opportunities for growth.”