FT: “Energy prices for British consumers would fall by £1bn a year if electricity interconnectors between continental Europe and the UK were doubled by 2020, according to the operator of the UK’s gas and electricity networks.”
“The £1bn price saving could be achieved for an investment of £3bn,” said Steve Holliday, chief executive of National Grid.
….The UK has four so far, linking the British mainland to France, Ireland, the Netherlands and Northern Ireland. These total 4,000 megawatts, about 5 per cent of existing electricity generation capacity. Importing cheaper power reduces the UK’s wholesale prices and would benefit consumers if lower prices are passed on by retailers.
National Grid already jointly operates two of these cables, to France and the Netherlands. The power company is also working with government backing on what would be the world’s longest interconnector, to Norway, aimed at tapping the country’s surplus of hydroelectric power. Other key projects are a 1,000MW link to Belgium and an additional 1,000MW supply line to France – an established swing supplier of energy to the UK market.He said there was evidence of an increased commitment to interconnection by policy makers at the EU summit last month.”
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