Ofgem proposes approving three new electricity
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.”
Interconnectors are transmission cables that allow electricity to flow
from one country to another and there are currently four interconnectors
between GB and Europe, providing around 4GW of electricity capacity. This
represents around 4% of Britain’s electricity supply.
FAB Link
The European Commission to be invested in key energy infrastructure to
enhance security of supply across Europe. This included €75 million for
UK projects with cross-border benefits, including electricity interconnection
(enabling electricity to be transferred between countries), smart grid
and gas storage projects. €40 million went to two projects, one of
which was FABLINK.
On the EU Award Energy Secretary Edward Davey said:
“This is excellent news for the UK and Europe. The
Commission’s decision to fast-track funding is a real boost to getting
these projects built. The €40 million awarded to interconnector projects
linking the UK to Norway and France will help strengthen energy security
and deliver lower energy bills.”
FABLink holds potential to connect to future tidal generation
being developed off the Alderney coast.
IFA2
This is a joint venture between National
Grid plc, and Frances counterpart Réseau de Transport d'Electricité
(RTE), the French Transmission System Operator. IFA2 is being developed
as a 1000MW HVDC link. In England, it will connect to the transmission
system at a 400kV substation at Chilling Lane (cable sealing-end compound
for the Fawley-Chilling cables) in Hampshire. The submarine route has already
been surveyed and is around 207km in length, so altogether the onshore
& offshore cable route will be nearly 240km long.
The UK landing point for the sub-sea cables
is near Folkestone, Kent and the French landing point for the sub-sea cables
is near Calais, from where underground cables connect to Les Mandarins
converter station and then on to the French transmission system where it
will connect to the transmission system at the Tourbe 400kV sub-station
in North Normandy, some 28km inland
VIKING Link
Viking Link is an HVDC submarine power cable
with a capacity range of 700MW to 1,400MW, currently in the early stages
of planning and development with desk studies ongoing to establish feasible
converter sites, onshore and offshore HVDC cable routes, and landing points.
The interconnector is expected to be approximately 650km in offshore cable
length.
It is likely to connect Bicker Fen, southwest
of Boston, Lincolnshire in the UK, to Revsing in Denmark. Bicker
Fen was in the News recently over residents opposition to RWE's plans to
build a substation in the area to connect Triton Knoll Offshore windfarm
to the grid.
It is likely to connect Bicker Fen, southwest
of Boston, Lincolnshire in the UK, to Revsing in Denmark. Bicker
Fen was in the News recently over residents opposition to RWE's plans to
build a substation in the area to connect Triton Knoll Offshore windfarm
to the grid.
Currently RWE are going through a period
of consultation with statutory bodies, landowners and communities on the
electrical system.
The Interconnector strengthens RWE's case in many respects, and if both
projects (Triton Knoll and Viking Link) proceed to completion will make
Bicker Fen a power hub bringing up to 2GW of Electricity to the region.
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.
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.
The provision of additional HVDC interconnections to the European power
network offers a number of potential benefits to GB and the end consumer.
The degree of benefit depends in some cases on the location of the interconnector,
and the technology employed.
To meet carbon reduction targets, the UK needs to introduce significant
volumes of low-carbon generation, such as offshore wind and tidal generation,
to replace conventional generation that relies on burning coal and gas.
Interconnectors will also play a significant role in meeting the carbon
reduction targets. The European Commission set a target of having interconnection
capacity of a minimum of 10% of generation capacity by 2020 and proposals
to increase this to 15% by 2030.
The annual UK Future Energy Scenarios (FES)1 published by National Grid
is designed to provide a credible and plausible analysis of energy scenarios
up to 2035 with additional analysis looking to 2050.
The key changes for the electricity sector are expected to be in the way
electricity is generated as mentioned above and how it is consumed. In
terms of consumption, the FES suggests that heat pumps and electric
vehicles are likely to create new demand for electricity. These changes
create a new electricity system landscape that is very different to what
the UK have been used to managing.
The dynamic operation of the transmission system is largely dependent on
the type of generation connected to it, as well as the nature of demand
on it. Some of the key impacts of these changes to the system as reported
by the System Operability Framework (SOF)2 are:
> A reduction in system inertia and system strength;
> A greater variability of power flows; and
> The ability to restore the system following a potential blackout.
The ability to deal with the impact of these changes is dependent on the
range of products and services available to the NETSO. Our analysis as
part of the SOF shows that the GB power system requires new tools for managing
these changes in order to ensure economic, efficient and coordinated system
operation.
The GB electricity system is classed as an islanded power system with few
links (known as interconnection) to other power systems. The GB system
currently has around 4GW of interconnection to Ireland (Moyle
and East-West;
1GW in total), France
(IFA link; 2GW), and to the
Netherlands (BritNed; 1GW). These links are currently operating as merchant
interconnectors and provide the capability for import/export of energy
to different systems.
Traditionally interconnectors have been primarily intended to provide capacity
for energy flows between different synchronous areas. Interconnectors currently
provide a range of services to the System Operator (SO) such as cross-border
balancing, trading, and SO-SO trades for network/system support.
Details of the proposed interconnectors
To
see project details for each of the projects mentioned above click this
link then select project for details
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