Anya Kussé
As a leading player in the energy market, we unburden companies in their energy policy and develop future-proof energy strategies. Our team of experts negotiates, manages and optimizes our customers' energy contracts in a continuous and transparent manner. Supported by AI-driven software, we provide insight into the current and future cost of each MWh. We integrate sustainability into our overall approach and work pragmatically and solution-oriented to support you in the energy transition. Together, we create the most ideal energy landscape for your business.
Curtailment is being used more and more structurally: what does that mean for companies?
The energy transition is leading to a rapid increase in renewable energy, with offshore wind being a key pillar in Belgium. However, this evolution brings with it new challenges. In its recent study on the impact of curtailments in the eastern offshore zone, CREG shows that the deliberate reduction of production—known as curtailment —is no longer a marginal phenomenon, but is becoming a structural part of the electricity system.
It is important for companies to understand exactly what is happening here, why this phenomenon is increasing, and how to deal with it strategically.
What is curtailment and why is it increasing?
Curtailment means that the electricity production of a plant is deliberately reduced, not for technical reasons relating to the plant itself, but as a result of market signals or instructions from the grid operator.
The CREG notes that the volume of curtailed offshore wind energy has risen sharply: from 53 GWh in 2021 to 262 GWh in 2024. This remains relatively limited compared to total offshore production, but the trend is clearly upward.
The main explanation lies in the increasing need for flexibility, especially at times when solar production is high, for example. Offshore wind is then used as controllable capacity to compensate for imbalances in the system.
Economic reality: balancing takes precedence over production
A striking conclusion from the study is that curtailments usually occurred when electricity prices were positive. In other words, technically speaking, the electricity could have been sold perfectly well.
Nevertheless, curtailment does occur, because it is more economically advantageous for BRPs to temporarily reduce offshore wind output than to use other—often more expensive—flexibility options. Offshore wind thus plays an active role in the balancing markets.
For the market as a whole, this contributes to stability, but it also means that valuable, low-carbon electricity is not being utilized.
What does this mean for businesses?
The study focused on offshore wind, but the underlying mechanism can be applied more broadly: flexibility is increasingly becoming an economic factor in the energy system.
For companies, this means:
⚡Price signals on the electricity market are becoming more volatile
⚡Negative or low prices are becoming more common at specific times
⚡Flexible consumption, storage, or control is becoming increasingly valuable
Companies that do not have insight into this may miss out on opportunities or run greater price risks.
What is the role of your Energy Account in relation to curtailment?
As Energy Accountants, we help companies translate this complexity into clear, well-founded decisions.
⚡Analysis of consumption profiles in relation to market prices, imbalance, and flexibility
⚡Evaluation of contracts and market exposure, ensuring that curtailment effects and balancing costs are correctly taken into account
⚡Strategic choices regarding storage, control, or electrification, always with a focus on financial impact
We don't primarily focus on technology, but on figures. This ensures that flexibility does not remain an abstract concept, but a manageable component with a positive impact on your energy costs.
Conclusion
The CREG study makes it clear that curtailment is no longer a temporary exception, but a structural consequence of the energy transition.
By approaching energy like accounting—with insight, monitoring, and control—Odot helps companies maintain control in an increasingly dynamic energy landscape.
Would you like to know what flexibility and curtailment mean for your company in concrete terms?
We would be happy to discuss this with you.