Offshore Wind Could Turn UK into Net Power Exporter to Europe in Five Years gCaptain – gcaptain.com

ByRachel Morison (Bloomberg)

Britain could become a net exporter of electricity to Europe as soon as 2026, according to S&P Global Platts.

The U.K. imports about 7% of its electricity from Europe now, but thats set to reverse, in part due to new cables that will boost links with the continent. With Britainaiming toquadruple offshore wind capacity this decade, it could have excess power to send through those lines.

Power flows to where prices are highest. At the moment this is often Britain, particularly along the two cables from France. But prices are expected to rise in mainland Europe, especially in the biggest market Germany as coal, lignite and nuclear plants are closed down, according to Platts. That will alter the economics and flow of electricity.

The U.K. aims to cut greenhouse gas emissions to net zero by 2050, and importing supplies of low-carbon electricity from countries like France, Norway and Denmark is part of that plan. Yet with power demand set to double over the period, Britain is also bolstering its own supply, targeting 40 gigawatts from offshore wind by 2030.

The U.K. market is getting structurally longer, while the whole of western Europe is moving in another direction, said Sabrina Kernbichler, European power analyst at S&P Global Platts.

New interconnector cables will boost Britains links with Europe to 18 gigawatts from 8 gigawatts by 2030. Theres a medium-term possibility that the country will become a net exporter, according to Andreas Gandolfo, an analyst at BloombergNEF.

But it wont last. While wind-power growth in the coming decade will depress prices in the U.K., the increased electrification of energy use will subsequently drive them up, he said.

Planned new interconnectors include:

2021Bloomberg L.P.

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Offshore Wind Could Turn UK into Net Power Exporter to Europe in Five Years gCaptain - gcaptain.com