Interconnection

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The government has insisted its proposed £1.5 billion package of payments to communities hosting grid projects will have only a negligible impact on wider bills, while also admitting it offers only a slightly better than even chance of thwarting delays.
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The annual application windows proposed by the Electricity System Operator as part of long-term reforms to the connections process may not work for some types of projects, the government and energy regulator have cautioned. The comments were included in the six-point Connections Action Plan issued by the Department for Energy Security and Net Zero (DESNZ) and Ofgem.
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The government will manage a “triage” process for prioritising the connection of strategically important energy projects as part of its joint action plan with Ofgem for speeding up grid connections. Working with the regulator, the Department for Energy Security and Net Zero (DESNZ) will establish a Connections Delivery Board to oversee the implementation of the six-point plan, which aims to cut the average wait for a connection from 5 years to 6 months.  
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Latest in Interconnection

Total Energies has acquired a minority stake in an ambitious project to link the UK grid with wind and solar farms in Morocco via subsea cables running along the west coasts of Europe and Africa. The French oil supermajor’s £20 million investment comes after Octopus Energy Group took a stake in the project last year as part of a partnership that could eventually see Octopus’ retail arm obtain offtake rights for the power imported to the UK.
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Energy UK has called on the government to “press ahead” with linking the UK Emissions Trading Scheme (ETS) to its European Counterpart to drive up the carbon price, increasing revenues and avoiding huge export taxes for UK businesses. It comes as analysis by the trade association has revealed that between April and the beginning of October this year, the UK ETS raised over £1bn less for the Treasury than if prices had remained at 2022/23 levels.
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Ofgem has rejected a code modification proposal which would have effectively capped the amount the UK spends on buying energy from other countries. The proposal – tabled by Saltend Cogeneration Company – urged Ofgem to amend code P443 to cap interconnector trades at the Value of Lost Load (VoLL). However, in its final ruling Ofgem states that introducing such a cap would weaken Britain’s energy security.  
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The biggest challenge facing the UK’s networks and their partners in delivering the energy transition is the unprecedented and ever-growing queue for new connections. How can innovative practical approaches manage the queue and get low carbon technologies and new sources of electricity demand onto the grid in time to meet the UK’s net zero targets?
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The new UK energy secretary has signed a series of pacts with the Irish government to promote post-Brexit gas and electricity co-operation, including the development of interconnectors to directly plug new wind farms into the two countries’ grids. To mark British-Irish Energy Day, Claire Coutinho and Irish minister for environment, climate and communications Eamon Ryan signed two new energy Memorandums of Understandings (MoUs).
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National Grid and SP Energy Networks have selected a consortium to deliver the next phase of works for a £2.5 billion subsea transmission cable. The Eastern Green Link 1 (EGL1) will be a 525kV, 2GW high voltage direct current (HVDC) link from East Lothian in Scotland to County Durham in England. Once completed, the 190km cable is expected to carry enough power to supply more than 2 million homes across the UK.
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The government has decided to legislate to re-establish a single Great Britain day-ahead clearing price for interconnector-traded electricity in a move that could help recouple the wholesale market with the EU’s. Since Brexit, when the UK had to leave the EU's Internal Electricity Market (IEM), traders have been required to physically book day-ahead capacity on grid interconnectors with neighbouring countries and then participate in power auctions every day to determine the prices of electricity.
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The proposed Eastern Green Link 2 project has now secured all the planning consents required for all onshore and offshore elements of the project, including new converter stations and onshore and offshore cables. The link, which will be delivered in partnership by SSEN Transmission with National Grid Electricity Transmission (NGET), will see the creation of a 2GW subsea transmission cable from Peterhead in Scotland to Drax in Yorkshire, England.
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Fuel poverty campaigners have accused the government of betraying the most vulnerable people in society after failing to include a previously promised social tariff in energy market reforms. Also in the latest round-up of the weekend news, prime minister Rishi Sunak confirms millions of pounds of funding for a carbon capture project in Scotland and a new poll commissioned by the Liberal Democrats finds a quarter of swimmers may avoid the seas this year because of concerns over sewage dumping.
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The British and Danish power grids have been physically connected for the first time after the final length of cable was laid and joined for the delayed 1.4GW Viking Link interconnector. Stretching 475 miles between Bicker Fen in Lincolnshire and Jutland in Demark, the subsea cable will become the world’s largest interconnector once it is fully completed by the end of this year.
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High energy prices are predicted to keep UK gas demand low for a second consecutive winter. However, in its first Winter Review, National Gas Transmission has predicted that strong exports to Europe will keep overall demand for British gas at a steady level.
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Plans for an electricity “superhighway” between Scotland and the UK have moved a step closer to reality, following approval of the scheme’s marine licence. The link, which will be delivered in partnership by SSEN Transmission with National Grid Electricity Transmission (NGET), will see the creation of a 2GW subsea transmission cable from Peterhead in Scotland to Drax, Yorkshire in England.
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