9th Mar 2015 12:24
LONDON (Alliance News) - UK gas and electricity regulator Ofgem Friday said it recommends the government moves forward with three new electricity inter-connectors that would connect Britain's electricity system with France and Denmark, including one which will be developed by National Grid PLC.
Inter-connectors are transmission cables that allow electricity to flow from one country to another. Currently, there are four inter-connectors between Britain and Europe, providing around 4 gigawatts of electricity capacity, representing around 4% of Britain?s electricity supply.
Ofgem is consulting on proposals for new electricity inter-connectors to other countries in an attempt to increase the country's electricity capacity, improve energy security and lower consumer bills by creating access to cheaper electricity generation and further boost Britain?s energy supply, said Ofgem.
Ofgem has recommended the FAB link inter-connector and the IFA2 inter-connector which would connect Britain's electricity system with France, alongside the Viking Link inter-connector, which would link the system with Denmark.
The regulator said the three inter-connectors would provide around GBP8 billion of benefits to British consumers over a 25 year period.
"Ofgem is helping to deliver greater interconnection. These three inter-connectors 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 5 gigawatts to Britain?s energy supply," said Martin Crouch, senior partner of electricity transmission at Ofgem.
Ofgem recommended not progressing with the Greenlink inter-connector, which would have linked Britain's electricity system with Ireland, as "proposals did not demonstrate enough value for Great British consumers," it said.
The FAB Link inter-connector will be developed by Transmission Investment and French transmission system operator RTE, whilst the IFA2 inter-connector will be developed by Interconnector Holdings, RTE and the National Grid. The Viking Link will be developed by Danish transmission system operator Energinet.dk and NGIH.
National Grid shares were up 0.2% to 866.80 pence per share on Monday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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