Is there electric light at the end of the Channel tunnel?
Could piping electricity through the channel tunnel help protect the UK from blackouts?
When outgoing head of energy regulator Ofgem Alistair Buchanan warned the country could face a squeeze on its electricity generating capacity, it prompted media predictions of ‘ life threatening blackouts‘.
Over the weekend, the Telegraph suggested that the regulator will issue more warnings on the subject, and that the government’s energy plans could cause problems for ensuring security of electricity supply by the middle of the decade.
But a new report by the Institute of Public Policy Research (IPPR) argues that the situation might not be so bad because Ofgem have underestimated the benefits of connecting the UK to Europe’s electricity grid.
Keeping the lights on
Gas has become an increasingly uncompetitive source of electricity – because coal is currently cheap. This has led energy providers such as Centrica and SSE to temporarily shut down some of their gas plants – known as mothballing.
But coal isn’t expected to stay cheap forever, and perhaps more pressingly, a significant amount of coal-powered generation is scheduled to close in the next few years. Ofgem has previously said energy reserves could be “uncomfortably tight” within the next few years if existing gas plants aren’t kept online.
IPPR’s new report suggests plans to help countries share electricity should absorb much of the impact, however. It says that while concerns over a ‘capacity crunch’ are valid, Ofgem has underestimated the benefits of building new interconnectors.
Supergrid
The European electricity market is becoming increasingly connected as more cables are laid across borders. The aim is to create a European ‘supergrid’ which allows countries to buy and sell electricity to balance supply and demand.
Connecting the UK to more countries means that when there’s a crunch on electricity supply – for instance if the wind isn’t blowing and everyone puts the washing on – National Grid could more easily import electricity, rather than paying to bring more power plants online. Other countries could benefit in the same way, meaning Europe-wide electricity prices could converge.
Connecting to the European grid could theoretically save consumers money, the report argues, if converging electricity prices meant UK prices fell. (It looks to us like UK electricity prices for consumers were roughly average for Europe in 2011.)
The UK currently shares about four gigawatts of interconnection capacity with Ireland, France and the Netherlands, with six gigawatts planned by 2020.
One possibility is laying power cables through the Channel Tunnel. Because the tunnel already exists, the UK could be enjoying flexible French electricity in the very near future, the government’s Chair of the Office for Renewable Energy Deployment told us last month.
The map below shows some ideas for where the UK could be hooked up to by 2020:
IPPR says interconnections:
“… present a cost-effective and convenient way of dealing with electricity shortages. In addition, in the long terms, it would help to balance variable renewable energy… and also increase overall competition in Europe’s electricity market, which could lower prices.”
It says Ofgem should reconsider its sceptical interconnector stance. Ofgem tells us it has been looking at the issue closely and will publish the results of a consultation “very soon”.
Political will
There are still a number of obstacles to making the supergrid a reality, however.
As with all major energy infrastructure projects, there will need to be some serious investment. The European Commission says governments will need to invest £200 billion by 2020.
That could be hard to come by as some countries are going to benefit much more than others. While the UK and France have a lot to gain, Scandinavian countries could lose out, says IPPR. This is because they currently have lower prices than other countries, so any price convergence could actually increase consumer costs.
IPPR admits making the interconnections happen relies on political objections being resolved. Elements of the UK have traditionally be quite hostile to Europe – whether this will extend to importing more power from the continent remains to be seen.
Coping with a crunch
Balancing the grid is a tricky business, but the National Grid is optimistic the UK will find ways to cope.
Getting the UK hooked up to a European supergrid could be one way to ensure there’s plenty of electricity – particularly when the wind isn’t blowing, it’s cold outside, Sizewell B has an outage and everyone’s rushing to get a cup of tea.