UK announces commercial operations of longest land/subsea interconnector
A new 1.4 GW subsea “Viking Link” interconnector between the UK and Denmark is entering commercial operation, aiming to share surplus renewable power and smooth out supply across Northern Europe. Commenters weigh whether this will actually lower consumer bills or mainly boost energy company profits, noting complex effects on wholesale prices, government caps, and cross-border market rules. The project is also framed as long-term grid resilience infrastructure, with debate over its multi-decade financial and carbon payback and its role in reducing reliance on coal and gas.
Impact on prices and consumer bills
- Some expect savings for UK consumers; cited figure is ~£500m over 10 years, which works out to roughly pennies per person per month.
- Others are skeptical that savings will reach consumers, arguing profits will dominate.
- Norwegian media reportedly predicts slightly higher bills (~£10–15/year) in both UK and Norway due to more bidders driving up prices when power is scarce.
- Counter‑argument: larger integrated markets and bidirectional flows should smooth peaks, generally lowering prices rather than raising them.
Market dynamics and interconnector role
- Interconnector is bidirectional; it can export UK surplus (e.g., windy periods with negative/very low prices) and import when UK is short.
- Examples from dynamic tariffs show very low or even negative prices at certain times; new demand from Denmark may raise those lows, while Danish exports may lower UK price peaks.
- Some discuss how interconnectors alter price convergence (e.g., 5p vs 7p ends up near 6p, 40p vs 42p near 41p).
Renewables, coal, and gas
- Viewed as part of a wider North Sea strategy (UK, Denmark, Netherlands, Germany) to integrate wind-heavy grids.
- UK already has extensive offshore wind but faces policy/incentive issues, especially in recent auctions.
- Interconnectors plus geographic diversification help smooth variable wind and reduce need for coal.
- UK coal generation is already ~1% and the last plant is scheduled to close in 2024, though some argue for keeping capacity as backup given tight margins and gas-risk history.
Norway, Denmark, and regional effects
- Some claim these links have “ruined” the Norwegian market by raising prices despite cheap hydro.
- Others argue Norway benefits by exporting excess hydro and effectively “storing” wind power via reservoirs; much of this is state-owned, so profits flow to citizens.
Costs, payback, and infrastructure philosophy
- Project cost is ~£1.7bn; with £50m/year savings estimate, implied financial payback is several decades.
- Some see that as acceptable for long‑lived infrastructure (bridges, tunnels analogies); others question if it’s really low-hanging decarbonization fruit.
Technical and misc points
- HVDC specs discussed: ±525 kV, 800 MW initially, planned 1,400 MW; current on the order of a few thousand amps.
- Safety concerns about high power undersea cable are downplayed; protection systems and seawater dissipation cited.
- Tools like Electricity Maps and UK grid dashboards are used to watch flows in real time.