Britain strengthens links with Europe: approves five new subsea cables

The United Kingdom has approved five new electricity interconnectors to Ireland and continental Europe, worth a total of approximately £7 billion. According to the British regulator, these links will increase grid flexibility as the use of renewable energy grows.

Britain’s energy regulator Ofgem said the projects, which will increase consumers’ electricity bills by £2 to £5 a year between 2030 and 2055, will support the North Sea wind industry and address the problem of intermittent electricity supplies from renewable energy sources.

Two of the five projects, being developed by National Grid, will connect the United Kingdom directly to wind farms in Belgium and the Netherlands. The other three will connect England with Germany (Tarchon), Wales with Ireland (MaresConnect), and Northern Ireland with Scotland (LirIC).

All the projects, with a combined transmission capacity of just over 6 GW, are expected to be commissioned by 2032. This will bring the United Kingdom’s interconnector transmission capacity to a total of 18 GW.

The United Kingdom has introduced a 25-year revenue regulation mechanism for interconnectors known as the cap and floor regime. It gives developers certainty that their costs will be covered and provides a regulated return if revenues are low in a given year, while limiting potential profits when revenues exceed the cap.

Two of the interconnectors, LirIC and MaresConnect, initially received a negative assessment from the regulator, which found that they had not been shown to benefit consumers. Ofgem later reconsidered its assessment and approved the regulatory framework on Tuesday.

Interconnectors are an important part of the UK energy system

Connecting transmission systems across Europe is an essential part of the energy transition, as it helps maintain grid balance despite the variable output of renewable energy sources. The new interconnectors will help the United Kingdom export surplus electricity on windy days, or import it when renewable power generation falls.

The United Kingdom currently has nine interconnectors in operation, with two more under construction. According to the Department for Energy, 13% of UK electricity consumption was imported via interconnectors in the second quarter of this year.

According to Dieter Helm, an energy markets expert at the University of Oxford, the United Kingdom’s energy plans for 2030 envisage meeting around 20 to 25% of electricity consumption through interconnector links and active demand management.

Helm added that the United Kingdom is outside the EU’s internal energy market, creating bureaucracy around the use of interconnectors and raising questions about whether the EU would be willing to supply electricity to the United Kingdom in the event of unexpected disruptions.

“If there is a problem, will EU countries continue sending their electricity to the United Kingdom, or will they reserve it for their domestic markets?” Helm said.

The United Kingdom imported a record 12.1 TWh of electricity this quarter, a year-on-year increase of 31%, but also exported 2.9 TWh, up 75% year on year. Ofgem forecast that by 2030, when more wind farms are operating in the United Kingdom, the country will become a net exporter of electricity.

“As we transition to a clean energy system that relies more on intermittent wind and solar power, these new connections will help unlock the huge potential of the North Sea,” said Akshay Kaul, head of infrastructure at Ofgem.

He added that this infrastructure will play a key role in reducing electricity prices in the United Kingdom and its dependence on volatile foreign gas markets, along with the associated price fluctuations.