Brexit delays hinder UK’s efforts to build new power cables to France

Bloomberg

Some projects to develop new power cables between the UK and France are on hold because of uncertainties related to Brexit, throwing into question the delivery of infrastructure intended to reduce electricity costs in the UK.
Work continues on two new interconnectors that were already under construction between the countries. However, talks on 3 other subsea power lines have been suspended due to the prolonged wrangling between the UK and the European Union over their divorce.
The pause, caused by the French energy regulator’s decision not to rule on the benefits of new interconnectors with the UK until the final conditions of Brexit have been clarified, could mean higher power prices on the British market for several years.
“As the UK often benefits from low power prices from France, less interconnection with that country can inadvertently translate to higher power prices,” said Andreas Gandolfo, a London-based analyst at BloombergNEF.
Increased connectivity with neighbouring countries is becoming more important as the European power market undergoes rapid change. Utilities are becoming reluctant to invest billions to replace coal-fired and nuclear plants that are edging closer to retirement age, while wind and solar power can experience significant fluctuations.

ON PAUSE
Ofgem, the UK energy regulator, has so far approved nine interconnectors, which would more than triple capacity from the current 5 gigawatts, a spokeswoman said. Developers will need to work with governments and regulators in connecting countries to ensure that final approval is granted in those countries, she said.
French regulator CRE’s concern over Brexit uncertainty is delaying progress of the Fab Link, Aquind and GridLink.
Prime Minister Theresa May is still struggling to gather enough support to get her EU withdrawal agreement thro-ugh a vote in House of Commons.
If her deal fails for a th- ird time, the UK will be forced to choose between a potentially long delay to its departure and falling out of the EU without a deal on April 12. Either of those outcomes would deepen the uncertainty that’s affecting the development of this vital infrastructure.
“There is a pause on talks for new interconnectors in development to France until Brexit is sorted,” National Grid Plc said in response to questions from Bloomberg.
The UK power-grid operator said it’s continuing with projects that are already underway, amounting to as mcuh as 2.1 billion-pound ($2.8 billion) investment in cables to France, Norway and Denmark.
“There are significant benefits for consumers from greater interconnection, no matter what the Brexit outcome,” National Grid said.
The construction of Fab Link, a 1.4-gigawatt subsea link between the South of England and the Normandy region in France, is due to start in 2020 and to be completed in 2023, according to its website.