How much could your business save? Find out now!
Or, you can call us on: 0800 411 8830

European Supergrid takes shape with North Sea link


A ‘supergrid’ that includes links across the North Sea looks a step closer with a proposed Scotland to Scandinavia link set to receive European funds.

The link is a “top priority” for the European Commission, the Herald reported, quoting Commissioner Miguel Arias Cañete’s remarks to Scottish Tory MEP Ian Duncan. Funding will apparently be drawn from a recently established €315 billion (£220 billion) Investment Plan for Europe (to which the UK has pledged £6 billion). Nevertheless, that leaves the majority of the estimated €330 billion cost of the North Sea Offshore Grid (officially the North Seas Countries Offshore Grid Initiative or NSCOGI) to come from the private sector.

Towards low cost business electricity

The NSCOGI has been at the planning stage since 2009, when nine countries bordering the North Sea agreed to build the grid. The project was left stalled in the starting grid while EU states negotiated on new 2030 greenhouse gas (GHG) emissions targets.

The 40% GHG cut agreed in October 2014 saw the NSCOGI kick-started, with a consultation on plans for a consultation on an EU-wide energy union recently announced. This eventual aim of a single European market for energy supplies, purchases and consumption should make for a more secure, more efficient electricity supply network. Construction work on parts of the NSCOGI could begin within 18 months.

When finished, green energy produced in Scotland could be stored in Scandinavian pumped hydro storage schemes until demand peaked elsewhere in Europe. The NSCOGI could, thus, incentivise investment in renewable projects.

There are already signs of investor appetite for bilateral cable projects. The National Grid and Norway’s state grid company Statnett recently awarded £1.5 billion in contracts to build the first electricity link between the UK and Norway.

Comparing commercial electricity

One of the primary benefits of the link for the UK would be thousands of jobs. Arguably more important in the longer term, the NSCOGI should also make for cheaper business energy bills.

The UK currently has the most expensive wholesale electricity prices in Europe. Norway – where renewable-generated electricity dominates – has the lowest wholesale prices (around a fifth of the UK, according to the Herald).

While an 80% cut for UK businesses is clearly not on the cards, a significant reduction (likely a single-digit percentage) can be expected.

Yet these price cuts may take more than a decade. For an immediate solution, SwitchMyBuiness.com can offer a comprehensive comparison of business electricity deals and switch supplier in just 20 minutes. Just complete the form at the top right of this page or calling 0330 010 0251.

Related Articles

working from home

Can I have a business energy contract if I work from home?

The gig economy is showing no signs of slowing down and micro businesses are thriving, with 76% of UK business...

Read More
New design electricity pylon used in Nottingham

Energy News – 21/04/17

What with the announcement of a snap election and all the ensuing shenanigans it’s certainly not been a quie...

Read More
eco trees image

Earth Day Brainteaser – can you find the footprint?

Can you find the foot amongst the leaves? Challenge yourself with our brainteaser, created to celebrate Earth ...

Read More
Excellent, 9.7 / 10

Very easy

"Very easy. Bea Luseni very efficient & knowledgeable."

This review was posted by Alan Duffy on the 31st of March 2017

Super helpful and easy to work with

"Recommend this company in a heartbeat - Nicole Borneuf was super easy to talk to, was not pushy in the slightest, very helpful and replied with all my questions very professionally and did all she could to help. I had to deal with a few companies to sort my business energy out, all but Nicole were too pushy for my liking and I refused to follow through with them. Thank Nicole - you are a credit to your company, thank you for making the stressful energy change so easy."

This review was posted by Mia Drew on the 29th of March 2017

An Extremely Competent Company

"Switch my business has not only helped my SME secure a good energy deal for the second year running but Jessica swiftly found a alternative supplier for me when I was let down on the day of switching by the new contractual provider I had chosen some 4 months previously. Being suddenly out of contract and without provider is everyone's energy nightmare. Greatest thanks."

This review was posted by S McMillan on the 29th of March 2017

Helpful, friendly and we saved lots of money!

"Jessica Purnell was helpful and friendly, she made the whole process easy and simple AND we saved lots of money thanks Jess"

This review was posted by Melanie Baker on the 23rd of March 2017

Quick & Easy

"Kabibi was very helpful and the whole process was very efficient. The one small reservation I had was that I was phoned up by Kabibi almost immediately having received my online quote - which wasn't enough time for me to finish reading the quotes! Fortunately she was able to assist me in a greater savings on both Gas & Electricity, and so as long as the switchover is seamless I will remain very happy with the service."

This review was posted by Amanda Brown on the 21st of March 2017