quote
menu

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

DCP228 and Business Electricity

What is DCP228? DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way busin...

Read More
energy news

DCP 161 – Excess Capacity Charges

If your business uses a Half Hourly (HH) meter for its energy supply, make sure you’re ready for DCP 161...

Read More
Scottish Power logo

Total Gas & Power

Total Gas & Power is a business energy supplier, wholly owned by Total SA. It has been a leading business ...

Read More
Excellent, 9.8 / 10

Mark W was really helpful and gave…

"Mark W was really helpful and gave excellent advice and customer focused service. Thanks you."

This review was posted by Adam on the 25th of April 2018

Really helpful

"Really helpful, clear advice from their assistant Bhavni, and an easy switch to a new electricity provider. Many thanks!"

This review was posted by Mrs Farley on the 25th of April 2018

Friendly, helpful staff

"Cheryl was really helpful and nothing was to much trouble as it took a few calls to finalise the switch to new supplier. Hope to save a few pounds with new provider."

This review was posted by Mary Southwell on the 23rd of April 2018

I had a really good experience with Ian…

"I had a really good experience with Ian Howell ext 2884 who works there. Great service, great price, recommended !"

This review was posted by Stephane vander elst on the 24th of April 2018

Fantastic service from Jess Purnell…

"Fantastic service from Jess Purnell today. Having used your very straightforward website I had an immediate phone call, Jess was very knowledgeable, professional and easy to deal with. She talked me through the options, explained the different elements of the quotes, and was able to secure me a good rate on a 2 year contract. Thank you"

This review was posted by Jackie Gilmore on the 24th of April 2018