UK$Interconnection$in$a$post$Brexit$Europe$ Zac$Richardson$ Head$of$Business$Development 30$May$2018

Size: px

Start display at page:

Download "UK$Interconnection$in$a$post$Brexit$Europe$ Zac$Richardson$ Head$of$Business$Development 30$May$2018"

Virgil Pitts
6 years ago
Views:

1 UK$Interconnection$in$a$post$Brexit$Europe$ Zac$Richardson$ Head$of$Business$Development 30$May$2018 0

2 National(Grid(Plc

The$energy$transition$offers$new$opportunities Enormous$and$rapid$changes$ across$our$sector

Activities$in$competitive$markets$disruptive$to$the$ traditional$utility$model

scale renewables$such$as$solar$and$wind,$lng,$ etc.

3 The$energy$transition$offers$new$opportunities Enormous$and$rapid$changes$ across$our$sector Key$markets$for$National$Grid$outside$of$its$ regulated$core$ New$energy Activities$in$competitive$markets$disruptive$to$the$ traditional$utility$model distributed$energy,$aggregation$ &$optimisation Large,$discrete$commercial$projects Large?scale renewables$such$as$solar$and$wind,$lng,$ etc. Competitively=bid/originated$projects Assets$of$traditional$utilities$(transmission$and$ distribution),$electricity$interconnectors National$Grid$Ventures$has$been$established$to identify$and$capture$opportunities$outside$of$national$grid s$ regulated$core$businesses 2

4 Global&Transmission&- scope&of&interest Market'to'Market Electricity Interconnectors Offshore4Transmission Onshore4Transmission Transport4Power Gas4Interconnectors LNG Links&between&different&electricity markets&/&price& regions&where&arbitrage&exists.&most&likely&hvdc& and&inter-country&or&inter-state. GB&OFTO (Generator&Build,&OFTO&Build).&Other& country&ofto.&hvac&or&hvdc. Potential&for& partnerships&with&wind&developers.&intra-wind farm links&(most&likely&hvdc). Offshore&hubs&&&grids.& Island&connections CATO. HVAC&or&HVDC (e.g.&hinkley,&nwcc,& EasternLink) Connections&for&rail&electrification, and&high&speed& rail,&bulk&charging&infrastructure&for&evs. Bulk& transportation&&&storage&of&fuels&(cng,&hydrogen) GB-EU,&inter-country,&EU-EU Focused&around&Grain&and&GB&market.&Storage& capacity&increases downstream&offerings

5 Why$develop$Interconnectors? 4 Affordability Socio.economic2welfare benefit2for2consumers Help2to2bring2costs2down2for2 consumers2through2arbitrage Security2of2supply Reliable2and2available2technology22 to2supply2power2to2the2system2in2 a2stress2event Sustainability2 Shared2energy2resources,2 integration2of2renewables More2links2provide2increased2 flexibility2to2share2generation2 sources2and2manage variability2 brought2by2renewables /MWh GB Germany France Denmark$W Norway Belgium Investment2 considerations Markets Regulation Partners Programme Engineering Consents Land Supply2chain Politics Cost Risks Stakeholders Competition Saturation Grid2Access EU2/2IEM

6 National<Grid< Ventures< Interconnector< Portfolio Who$is$NGV Operating Key IceLink 2030* NSL 2021 VIKING 2022 Under$construction In development Eurolink 1.5GW 2025 BritNed 1GW 2011 Nautilus 2027 IFA2 1GW 2020 IFA 2GW 1986 NEMO 1GW

7 Competitor& Who$is$NGV Interconnector& Development Key Operating Under$construction In development North& Connect 2022 Neu connect 2022 Green Wire 0.5GW 2022 Grid& Link 2022 Eleclink 1GW 2019 FABLink 2020 Aquind 2GW

8 Interconnector(key(challenges Financing Technical Market, Access Supply, Chain Partnership Permitting Regulation System, Operator 7

9 Some%of%the%bombs%found.. British'spigot'mortar German'EMC'contact'mine German'500kg'SC'plane'bomb German'1000kg'LMB/GC'parachute'mine' German'EMA'contact'mine British'Elia'contact'mine 8

10 The$benefits$of$greater$interconnection! Provides$consumers$access$to$cheaper$electricity! Provides$cross$border$security$of$supply! Market$opportunities$across$national$borders$for$generators,$ suppliers! Supports$de<carbonisation,$electrification$&$renewable$targets! Encourages$innovation$(hybrid$projects,$North$Sea$grid)! Support$isolated$countries$to$become$involved$in$the$electricity$ market$(iceland)! Encourages$discussion$&$action$on$a$wider$geographical$scale$that$ our$own$national$interests 9

11 Brexit 10

12 Brexit'( NGV'view' It'is'key'to'maintain'the'benefits'of'continued'energy'cooperation'on'energy'post'Brexit.'The' negotiations'should:' Provide(early(clarity Allow(for(a(transition(period We'need'early'clarity(for(both(UK(and(EU( energy(markets(on(rules(and(arrangements(that' will'apply'post(brexit.'including'indication'as'what' a'transition'period'will'entail.' It'is'key'to'avoid'a'cliff'edge'situation'where'there'is' no'deal.'we'need'sufficient(time(for(eu(and(uk( markets(to(adjust in'case'current'arrangements' are'changed.'there'should'be'a'transition'period' where'we'maintain'current'iem'rules.'this'will'give' us'time'to'develop'(if'needed)'the'right'systems'to' manage'future'trading'arrangements.' Avoid(trade(barriers We'need continued(barrier;free(access( between(our(national(energy(markets: ( No'tariffs,'direct'or'indirect,'placed'on'energy' trading ( Future'arrangements'should'to'allow'TSOs''to' trade'energy'efficiently'across'borders'and' maintain'a'high'level'of'sos Enable(continued(cooperation(post(Brexit Continued'EU(UK'cooperation'on'energy'policy'is' key'to'preserve'the'benefits'of'joint'harmonisation.' UK(participation(in(ENTSO;E,(ENTSO;G(and( ACER(and'joint'initiatives'like'Coreso,'Terre,' Prisma or'the'north'sea'forum Need'to'set'up'an'effective'mechanism(to( govern(eu;uk(future(regulatory(divergence

13 To#summarise! The#UK#&#NGV#is#open#for#business! Significant#potential#for#further#European#Interconnection! Norway#is#a#priority#market#for#NGV! To#build#upon#the#existing#partnership#&#experience#from#NSL 12

14 13

Energy Bridge. Delivering Irish wind energy to GB before 2020

Energy Bridge. Delivering Irish wind energy to GB before 2020 Energy Bridge Delivering Irish wind energy to GB before 2020 Mutual difficulties present mutual opportunities Ireland needs to attract investment Ireland needs to create jobs Ireland needs to export more