Interconnections with overseas electricity grids allow more flexible generation and distribution, and facilitate competition, improving energy security and prices. National Grid estimates that doubling the UK’s current interconnector capacity would result in savings of £1bn a year. However, investment into interconnectors may be delayed if the European Investment Bank will no longer support UK projects, and the operation of interconnectors may become more difficult if UK-EU regulations diverge.
Depending upon Brexit negotiations, the UK will also no longer be subject to the EU's target for all Member States to have 10% interconnection capacity by 2020. This note would discuss the benefits and disadvantages of interconnection and the potential effects of Brexit on interconnection investment and policy.
For further information on this project, or to contribute, please email Jack Miller.