News

Ofgem Proposes Approving Three New Electricity Interconnectors

Publication date:          6th March 2015

Information type:          Press releases

Policy area:                  Electricity - transmission

  • Consultation on proposed interconnectors
    • Three new interconnectors would provide 3.4GW of additional capacity 
    • Ofgem’s new regulatory framework is securing greater interconnection to further boost GB’s energy supply
    • Ofgem does not propose to take forward one project as it does not provide sufficient value for consumers

Ofgem is today consulting on proposals to approve the need for three new electricity interconnectors. These could be built by 2020 and provide around 3.4GW of electricity capacity. 

Two of the interconnectors (FAB Link and IFA2) will connect GB’s electricity system with France and one (Viking Link) with Denmark. More electricity interconnection can lower GB consumer bills by creating access to cheaper generation and further boost Britain’s energy supply. These three interconnectors are estimated to provide around £8 billion of benefits to GB consumers over 25 years. 

Ofgem is consulting on not progressing the application for an interconnector between GB and Ireland (Greenlink), as proposals did not demonstrate enough value for GB consumers. 

Martin Crouch, Ofgem’s senior partner for electricity transmission, said: “Ofgem is helping to deliver greater interconnection. These three interconnectors would further boost Britain’s energy security and reduce pressure on bills. To date, under our cap and floor regime, we are looking at adding around 5GW to Britain’s energy supply.”  </ends>

Notes to editors

1. About interconnection and Ofgem’s cap and floor regime

Interconnectors are transmission cables that allow electricity to flow from one country to another and they can offer significant benefits for consumers. There are currently four interconnectors between GB and Europe, providing around 4GW of electricity capacity. This represents around 4% of Britain’s electricity supply.

There are five interconnectors which have been assessed under the first application window for the cap and floor regime. Through this approach, if developers’ revenues exceed the cap, then revenue above the cap is returned to consumers. If their revenues fall below the floor then consumers top up revenues to the level of the floor. Consumer gains and costs are passed on through the network costs element of their energy bills. Developers are protected by the revenue floor from the full financial risks of the project, while consumers are protected by the revenue cap from underwriting excessive profits.

Find out more information in our factsheet on interconnectors. 

Find out more about Britain's energy use and supply in our Infographic: Energy security

2. Details of the proposed interconnectors

Ofgem’s consultation is open until 02 May 2015.

Project Name

Developers

Connection Locations

Capacity

FAB Link

Transmission Investment and RTE (the French transmission system operator)

Menuel in France and Exeter in Devon, England, via the island of Alderney.

1.4GW

IFA2

National Grid Interconnector Holdings (NGIH) and RTE

Tourbe in France and Chilling in Hampshire, England

1GW

Viking Link

NGIH and Energinet.dk (the Danish transmission system operator)

Revsing in Denmark and Bicker Fen in Lincolnshire, England

1GW

Greenlink

Element Power

Great Island in Ireland and Pembroke in Wales

0.5GW

For further press information contact:

Lisa O’Brien 020 7901 7426
Dafydd Wyn 020 3263 9943
Out of hours media contact number 07766 511470

 


Posted by ARE Communications Department on 6th March 2015