When the wind blows, the money flows: Scotland’s Local Constraint Market explained

What are Local Constraint Markets and how do they work?

Scotland generates a lot of renewable electricity—especially from wind. But sometimes, there’s more clean energy being produced than the grid can handle in that area. This creates a local bottleneck.

Traditionally, the solution has been to “curtail” wind farms—shutting them down temporarily. That means wasted energy, lost income for generators, and higher costs for consumers. In fact, curtailment happened on around a quarter to a third of all days in 2023, costing bill payers over £300 million.

So why can’t we just send that extra electricity elsewhere? The simple answer: the grid isn’t built for it. Transferring large volumes of power over long distances requires major infrastructure—which takes years to build. In the meantime, we need smarter solutions.

That’s why local constraint markets (LCMs) were introduced in 2024 by National Grid. Instead of wasting clean energy, the grid now pays flexible energy users—like homes with batteries, EV chargers, or smart heat pumps—to use more electricity when there’s too much supply in their area.

By absorbing this energy at the right time, your home helps stabilise the grid—and you get rewarded for it. And you don’t need to lift a finger. Capture handles everything in the background.

Local Constraint Markets are part of a broader grid services stack

LCMs are part of a broader set of flexibility services available through Capture. Here’s how they stack up:

1. Local Constraint Markets (LCMs): High-value, hyper-local services available in parts of Scotland.
2. Demand Flexibility Services (DFS): Get paid to reduce usage during national peaks.
3. Balancing and Frequency Services: React quickly to sudden grid changes.
4. Capacity Markets: Earn just by being on standby during rare stress events.

These services are stackable—you can earn from multiple markets using the same device.

How much can I earn?

Across all grid services—including Local Constraint Markets, Demand Flexibility, and Balancing Services—a typical household with a 10 kWh home battery could earn £200 to £1,000 per year. Local Constraint Markets (LCMs) are one part of that opportunity—but a valuable one.

In the LCM, average rewards have been around 20p per kWh used during an event. That means if your system shifts 1 kWh when the grid is constrained, you get 20p straight to your account. Typical annual earnings from LCM alone:

• Home battery (10 kWh): Up to £100/year
• EV charger (7 kW): Around £50–£75/year

Actual rewards depend on your location, the flexibility of your devices, and how often LCM events occur in your area. But the opportunity is real—and growing.

Capture AI tracks every event, every kWh shifted, and every pound earned—so you can see your earnings add up in real time.

How can I participate in Scotland’s Local Constraint Markets?

You don’t need to apply or bid yourself. You just need to:

• Have a compatible device (home battery, EV charger, or heat pump)
• Let us connect it to our Capture platform
• Sit back while we monitor the market and schedule your usage for maximum benefit

We act as your aggregator, pooling devices to meet market thresholds, placing bids on your behalf, and managing your share of the revenue.

If you live in a qualifying Scottish postcode, we’ll get you up and running in minutes.