The UK will boost its electricity imports from the European Union to offset any future supply shortages caused by the government’s decision to close the country’s last remaining coal power plant.
According to a Bloomberg report citing the newly renamed National Energy System Operator, the UK will have a spare capacity cushion of 8.8% this winter thanks to more import links with continental Europe. That would be up from 7.4% last winter after a new interconnector to Denmark entered into operation earlier in the year.
“The higher year-on-year margin is driven by new interconnection, growth in battery storage capacity and an increase in generation connected to the distribution networks,” NESO said, adding that “This combines to more than offset generation retirements — such as the recent closure of Ratcliffe-on-Soar.”
While that may be the case for now, Europe is going to see higher electricity demand as winter draws near, which may reduce its ability to export as much electricity as the UK may need amid winter conditions, which usually involve lower wind speeds and consequently less output from these installations. Solar is also not optimal in winter, especially in a place with sub-optimal solar output conditions due to its geographical location.
The European Union is also seeking to boost its own interconnector network to ensure adequate supply to all members – and Ukraine, too. Due to the destruction wrought on the Ukrainian grid and power generation facilities by the Russian military, the country is looking west for support in electricity supply. It sounds like Europe is about to get a bit stretched this winter, especially if it turns out colder than last year’s.
Indeed, the NESO has acknowledged the possibility of shortages. “We may still see some tight days where we need to use our standard operational tools, including the use of system notices,” the grid operator said.
By Irina Slav for Oilprice.com