The North Sea Link is a 1,400 MW high-voltage direct current submarine power cable between Norway and the United Kingdom.
41-717: At 720 km (450 mi) it was the longest subsea interconnector in the world when it became operational on 1 October 2021. The cable runs from Kvilldal , Suldal , in Norway, to Cambois near Blyth in England. The converter station is located near to the cable landfall in East Sleekburn and is connected to the National Grid at the Blyth substation. The cable is 730 kilometres (390 nautical miles) long, and has
82-568: A DC tie in the USA ) is a structure which enables high voltage DC electricity to flow between electrical grids . An electrical interconnector allows electricity to flow between separate AC networks, or to link synchronous grids . They can be formed of submarine power cables or underground power cables or overhead power lines . The longest interconnection as of July 2022 was the 2,210 km Hami - Zhengzhou delivering 8 GW of high voltage direct current power. The longest proposed connector
123-399: A cap on standard variable tariffs for energy customers, to be designed and implemented by Ofgem. The Domestic Gas and Electricity (Tariff Cap) Act 2018 (c. 21) received royal assent on 19 July 2018. It stipulated that the price cap would be in place from the end of 2018 until 2020, when Ofgem would recommend whether the cap should remain on an annual basis up to 2023. Ofgem would also review
164-524: A capacity of 1,400 MW. The estimated cost of the project was €2 billion, and it became operational in 2021, as planned. It is a joint project of the transmission system operators Statnett and National Grid . The offshore cable was supplied by Prysmian and manufactured at the Arco Felice factory in Naples, Italy. It was installed by the cable-laying vessel Giulio Verne . Cable for
205-575: A £12 million redress levy on E.ON in May 2014, and a £1 million redress levy on British Gas in July 2014. The Gas and Electricity Markets Authority is governed by the Chairman Martin Cave, executive members as well as non-executive members. Jonathan Brearley was appointed Chief Executive of Ofgem from February 2020. The liberalisation and privatisation of the energy markets in
246-563: Is expected to be around £3.5 billion under the base case scenario. This could reduce the average domestic consumer bill in the United Kingdom by around £2 per year. According to Auke Lont, CEO of Statnett, Norway can use the interconnector to import electricity at times of peak supply in the United Kingdom, allowing a temporary reduction in hydroelectric output in Norway and a corresponding increase at peak Norwegian demand times. When England has negative pricing, Norway imports near
287-531: Is the 3,800 km, 3.6 GW Xlinks Morocco-UK Power Project . Interconnectors allow the trading of electricity between territories. For example, the East–West Interconnector allows the trading of electricity between Great Britain and Ireland . A territory which generates more energy than it requires for its own activities can therefore sell surplus energy to a neighbouring territory. Interconnectors also provide increased resilience . Within
328-514: Is the Competent Authority responsible for approving ADR entities in the energy sector. Ofgem has only ever approved one ADR entity: Ombudsman Services. Ofgem launched an Energy Industry Voluntary Redress Scheme in 2018 to redistribute money paid by energy companies who have breached their operating licence conditions. Recipients of the fund include vulnerable energy consumers and developers of energy products and services that reduce
369-536: Is to protect existing and future consumers' interests in relation to gas conveyed through pipes and electricity conveyed by distribution or transmission systems. Consumers' interests are their interests taken as a whole, including their interests in the reduction of greenhouse gases and in the security of the supply of gas and electricity to them. Since 2010 the Authority has imposed nearly £100 million in fines and redress levies against energy suppliers, including
410-834: The Competition Act 1998 , the Enterprise Act 2002 and the Energy Act 2004 , the Energy Act 2008 and the Energy Act 2010 ) as well as arising from directly effective European Union legislation. Duties and functions concerning gas are set out in the Gas Act and those relating to electricity are set out in the Electricity Act. Its primary duty is to protect the interests of consumers, where possible by promoting competition. The Authority‘s main objective
451-574: The European Union there is a movement towards a single market for energy, which makes interconnectors viable. They are essential to achieve security of supply. As such, the Nordic and Baltic energy exchange Nord Pool Spot rely on multiple interconnectors. The fullest possible implementation of this is the proposed European super grid which would include numerous interconnectors between national networks. Interconnectors are used to increase
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#1732782660742492-549: The Utilities Act 2000 , designed to protect national security, relating to concerns about smart meters and Renewable Heat Incentive projects. Under the Alternative Dispute Resolution for Consumer Disputes Regulations 2015, if an energy company fails to resolve a complaint through their own customer service efforts they will be required to advise the consumer of an approved ADR body. Ofgem
533-697: The Ofgem Board ), is the government regulator for the electricity and downstream natural gas markets in Great Britain . It was formed by the merger of the Office of Electricity Regulation ( OFFER ) and Office of Gas Supply ( Ofgas ). The authority's powers and duties are largely provided for in statute (such as the Gas Act 1986 , the Electricity Act 1989 , the Utilities Act 2000 ,
574-655: The United Kingdom began with the Margaret Thatcher Government in the 1980s (often called the Thatcher-Lawson agenda, due to the key role of Nigel Lawson in the Thatcher government cabinet). Aspects of the UK's model have been adopted by EU legislation. The privatisation of the gas and electricity supply industries was enacted by the Gas Act 1986 and the Electricity Act 1989 . Section 1 of
615-409: The United Kingdom market regulator Ofgem , in the base case scenario the cable would contribute around £490 million to the welfare of the United Kingdom and around £330 million to the welfare of Norway. In this analysis, over the 25-year cap and floor regime (a regulation for how much money a developer can earn once the interconnector is in operation) the benefit to United Kingdom consumers
656-415: The United Kingdom. This project was suspended. In October 2009, Statnett and National Grid announced they were conducting a feasibility study of the cable. According to the pre-feasibility study the project would be economically and technologically feasible. It would be a commercial cable jointly owned by Statnett and National Grid NSN Link, a subsidiary of National Grid. In 2010, there was speculation that
697-456: The abuse of market power, and provide Ofgem with sufficient power to tackle any abuse. Moreover, consumer surveys showed good awareness of the ability to switch, high and rising switching rates away from the former monopoly suppliers, and substantial and continuing falls in their market shares. Two years after the removal of the last price controls, in April 2004, Ofgem published a major review of
738-442: The construction phase, a month after Nemo link , a similar connection between the United Kingdom and Belgium, was announced. Along with Viking Link from Denmark, they would increase the UK's electricity interconnection level (transmission capacity relative to production capacity) from the 6% it was in 2014. Construction of the UK on-shore cable between the landfall at Bucca headland and the converter station site at East Sleekburn
779-464: The electricity flows one way or the other. Markedskraft estimated that while the Norwegian import and export via NorGer will zero out in 2020, the annual net export to the UK via North Sea Link is projected to be about 10 TWh, i.e. almost all of the interconnector's annual capacity. Markedskraft go on to estimate that the increased demand for Norwegian electricity via North Sea Link will increase
820-591: The energy market as well as provide the certainty investors have called for," Ofgem CEO Dermot Nolan in announcing the investigation. In August 2016 Ofgem said that it would implement the CMA's recommendation that suppliers should be required to provide the details of customers who have been on expensive tariffs for three years or more to rival suppliers. Ofgem also said that it would impose an interim price cap on customers using pre-payment meters. In October 2017, Prime Minister Theresa May announced her intention to introduce
861-609: The finances of supplier companies, and that the government overlooked this lack of supervision because it prioritised competition over market regulation. In response, Ofgem accepted that its previous financial resilience regime was not sufficiently robust, and had contributed to some of the supplier failures since August 2021. In September 2018, the Guardian published a report claiming that two Ofgem experts had been independently threatened with criminal sanctions if they publicly revealed information. Ofgem allegedly invoked section 105 of
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#1732782660742902-657: The fjord, tunnel and lake sections, and the onshore connection in Norway, was supplied by Nexans and manufactured at Nexans' plant in Halden, Norway. It was laid by using the Capjet trenching system and the cable-laying vessel Skagerrak . The HVDC converter stations were built and installed by the ABB Group . The project was first proposed in 2003, when Statnett and National Grid planned a 1,200 MW interconnector between Suldal in Norway and Easington , County Durham , in
943-466: The grid. On 8 June 2021, it was announced that construction had been completed, and after a period of testing the interconnector became operational on 1 October 2021. Initially the link operated at a maximum of 700 MW, half its capacity, and then increased to a gigawatt. A flaw in the English converter temporarily restricted power until the full 1,400 MW could be achieved. The interconnector
984-498: The increase for the entire year. Statnett predicted more hours with imports of zero price electricity, as the rest of Europe gets more solar and wind power, and this happens sometimes, allowing South Norway to act as a "battery" and transit area between shifting high and low price areas in Europe. June 2023 was the first time the cable "bought" power in Norway at negative prices. Interconnector An interconnector (also known as
1025-548: The industry to set up and fund the Energy Supply Ombudsman in response to concerns over the handling of customer complaints. Ofgem's Energy Supply Probe, published in 2008 after increases in world fuel prices led to the doubling of the energy bill for a typical household, found that the market was still dominated by the " Big Six " suppliers: more than 70% of customers were still with their former monopoly suppliers, and new entrants had captured less than 0.3% of
1066-458: The interconnection may also connect the North Sea wind farms as well as offshore oil and gas platforms , becoming the backbone of the proposed North Sea Offshore Grid . In 2014, National Grid quoted various groups in favour of more interconnections. The route survey of the offshore section was conducted by MMT in 2012. In March 2015, Statnett and National Grid announced a decision to start
1107-541: The level of the cap at least every six months; from October 2022 reviews were to be conducted every three months, to reflect volatility in wholesale prices. Ofgem refers to this mechanism as the "default tariff" price cap, to distinguish it from the "prepayment" price cap, its other energy price cap. Between July 2021 and May 2022, 29 retail suppliers of gas and electricity collapsed, largely due to unprecedented increases in wholesale gas prices. Ofgem arranged for their customers to be transferred to other companies but this
1148-407: The market. Ofgem implemented a number of measures which improved the information provided to customers and made it easier for them to switch suppliers. The Big Six were obliged to separate their accounting for the supply and generation businesses, and Ofgem noted concerns over market abuses and unfair pricing. In June 2014 Ofgem announced a Competition and Markets Authority (CMA) investigation into
1189-485: The maximum 1.4 GW. In 2014, the Norwegian energy service provider Markedskraft analysed the impact of two interconnectors under construction from Norway: the North Sea Link and NorGer , a submarine cable of identical capacity connecting Norway with Germany. The electricity will at any moment flow towards the country with the highest price and these price differentials generate income for the interconnector whether
1230-614: The price of electricity in Norway by 25 NOK /MWh (ca. 2.6 €/MWh). A 2016 study expects the two cables to increase price in South Norway by 2 øre/kWh, less than other factors. Statnett said in March 2022 that the very high European gas prices were the main factor of the large increase in electricity prices in Southern Norway in late 2021. The two new cables NSL and NordLink, were responsible for €5―15/MWh, or 10% of
1271-469: The regulators set price controls which fixed the maximum price that the monopoly suppliers could charge domestic customers. These controls remained in place when markets started to be liberalised, and were removed in stages between 2000 and 2002. Ofgem's decision to remove price controls was based on their assessment that competition was developing well at that time and that the Competition Act 1998 , being effective since March 2000, would deter companies from
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1312-501: The regulators were prescribed in Section 4 of the Gas Act 1986 and Section 3 of the Electricity Act 1989. Starting in the 1990s, the supply of electricity and gas to retail consumers in the UK has been unbundled from the rest of the industry. At the time of privatisation, British Gas and the regional public electricity suppliers held a monopoly on supplying all domestic gas and electricity consumers respectively. In 1997, British Gas
1353-616: The respective Acts created the roles of Director General of Gas Supply and the Office of Gas Supply (Ofgas), and the Director General of Electricity Supply and the Office of Electricity Regulation (OFFER). These were economic regulators independent of government, but accountable to Parliament. This arrangement separated their regulatory decisions from political control in order to provide greater long term regulatory certainty and to encourage market entry and investment. The duties of
1394-407: The security of the energy supply and to manage peak demand. They enable cross-border access to the producers and consumers of electricity, thus increasing the competition in energy markets. They also help integrate more electricity generated from renewable sources, thus reducing the use of fossil fuel power plants and CO 2 emissions. Interconnectors aid adaptation to changing demand patterns such as
1435-441: The state of competition in the domestic energy supply markets, concluding that supply competition had delivered substantial benefits for all consumers and that the markets were competitive, though not yet mature. Between 2005 and 2007, Ofgem carried out a Supply Licence Review, resulting in simplification of supply licences, with the aim of reducing barriers to entry to the supply market, and enabling innovation. In 2006, Ofgem required
1476-446: The trading practices and competitiveness of the country's "Big Six" energy companies: Centrica , SSE plc , RWE npower , E.ON , Scottish Power and EDF Energy . The investigation, which took two years, followed a referral by Ofgem to the competition regulator. "There is near-unanimous support for a referral and the CMA investigation offers an important opportunity to clear the air. This will help rebuild consumer trust and confidence in
1517-466: The uptake of electric vehicles. Interconnectors may run across a land border or connect two land areas separated by water. As of July 2022 there are at least 35 international connectors and many more intra-national connectors, see high-voltage direct-current (HVDC) projects . Ofgem The Office of Gas and Electricity Markets ( Ofgem ), supporting the Gas and Electricity Markets Authority ( GEMA,
1558-600: Was completed in February 2020, with the converter station under construction. The cable crossed the 700-metre-deep (2,300 ft) Norwegian trench . A 2.3-kilometre ( 1 + 7 ⁄ 16 -mile) tunnel was drilled from the fjord through the mountain to the lake Suldalsvatnet , and the cable was floated across the lake to the Kvilldal connection point. As of January 2021, the converter station in Suldal had been connected to
1599-404: Was not possible for the 1.7 million customers of the largest company to enter administration , Bulb Energy , which instead entered a special administration regime underwritten by the UK government. A July 2022 report "Energy pricing and the future of the energy market" by Parliament's Business, Energy and Industrial Strategy Committee found that Ofgem had been incompetent in its supervision of
1640-406: Was split (demerged) into Centrica and BG plc , in order to separate gas supply from its production and distribution. Between 1996 and 1999, domestic energy consumers were gradually able to choose their supplier. Finally, in May 1998 the domestic gas market was fully opened to competition, followed by the domestic electricity market in May 1999. Before there was competition in domestic markets,
1681-555: Was switched from monopole to bipole operation in January 2022. 1,300 MW was achieved in April 2023, and full 1,400 MW operated by June 2023. While the main direction is from Norway to England, the cable is only fully utilized occasionally. After being fully operational, the North Sea Link gives the UK access to the south Norway bidding area (NO2) of Nord Pool Spot via the cable's own auction function. It has an annual transmission capacity of 12.3 TWh. According to analysis by