Electricity interconnectors

Electricity interconnectors are the physical links which allow the transfer of electricity across borders.

Interconnectors derive their revenues from congestion revenues. Congestion revenues are dependent on the existence of price differentials between markets at either end of the interconnector. European legislation governs how capacity is allocated. It requires all interconnection capacity to be allocated to the market via market based methods, i.e. auctions. It also includes specific conditions on how revenues are used.

Britain’s electricity market currently has 4GW of interconnector capacity:

  • 2GW to France (IFA)
  • 1GW to the Netherlands (BritNed)
  • 500MW to Northern Ireland (Moyle)
  • 500MW to the Republic of Ireland (East West).

Under the present regulatory regime based on EU and GB requirements, there are two general routes for interconnector investment:

  1. a regulated route under the 'cap and floor' regime. This is a relatively new regime, we decided to roll out the cap and floor regulatory regime to new near-term electricity interconnectors in May 2014.Through the cap and floor approach developers identify, propose and build interconnectors and there is a cap and floor mechanism to regulate how much money a developer can earn once in operation. If applying for a cap and floor regime developers have to comply with all aspects of European legislation on cross border electricity infrastructure. More information about the design of the cap and floor regime can be found in the documents below.
  2. as an alternative to the cap and floor model, developers can still seek exemptions from regulatory requirements. Under this route developers would face the full upside and downside of the investment and would usually apply for an exemption from certain aspects of European legislation in order to increase the safeguards for the business case of their investment.

Existing and future interconnector projects

Below is a list of existing and future interconnectors.

As with other major infrastructure projects future interconnectors face a range of challenges that can impact on timing of delivery. The estimated delivery dates shown below reflects our understanding of developers existing delivery plans for future interconnectors.

IFA National Grid Interconnector Holdings (NGIH) and RTE France 2000MW No No 1986
Moyle Mutual Energy Ireland 500MW* No No 2002
BritNed NGIH and TenneT Netherlands 1000MW No Yes (Second Package) 2011
EWIC EirGrid Ireland 500MW No No 2012
ElecLink Star Capital Partners Limited and Groupe Eurotunnel France 1000MW No Yes (Third Package) 2019
NEMO NGIH and Elia Belgium 1000MW Yes No 2019
NSN NGIH and Statnett Norway 1400MW Yes No 2020
FAB Link Transmission Investment and RTE France 1400MW Yes No 2022
IFA2 NGIH and RTE France 1000MW Yes No 2020
Viking NGIH and Energinet.dk Denmark 1400MW Yes No 2022
Greenlink Element Power Ireland 500MW Yes No 2021

* Moyle has been operating at around half of its normal 500MW capacity due to subsea cable faults since 2012.

Publications and updates

  • Published: 18th Dec 2019
  • Closed: 24th Jan 2020
  • Consultations and responses
  • 11 Associated documents
See our statutory consultation on a proposal to insert new special conditions into the electricity interconnector licence held by National Grid IFA2 Limited (NGIFA2).

  • Published: 18th Dec 2019
  • Reports and plans
  • 1 Associated documents
This document launches the interim findings of the OGA-led Energy Integration project, which explores options to integrate offshore energy infrastructure.

  • Published: 17th Dec 2019
  • Decisions
  • 13 Associated documents
This decision sets out Ofgem’s final position on the Post Construction Review of the Nemo Link interconnector project.

  • Published: 3rd Oct 2019
  • Closed: 28th Nov 2019
  • Consultations and responses
  • 3 Associated documents
This consultation sets out Ofgem’s minded-to position on proposed changes to our cap and floor regulatory regime for electricity interconnectors.

  • Published: 12th Sep 2019
  • Closed: 11th Oct 2019
  • Consultations and responses
  • 19 Associated documents
This consultations sets out Ofgem’s minded-to position on the Post Construction Review of the Nemo Link interconnector project.

  • Published: 30th Aug 2019
  • Decisions
  • 4 Associated documents
This letter sets out our decision on approach to cost sharing and cost recovery under the CACM Regulation.

  • Published: 7th Jun 2019
  • Decisions
  • 2 Associated documents
This document sets out Ofgem’s final decision on applications by National Grid North Sea Link Limited and National Grid IFA2 Limited for certification under the requirements of the Third Package.

  • Published: 30th May 2019
  • Decisions
  • 1 Associated documents
Decision on Interest During Construction (IDC) rates to apply in 2019-20 to offshore transmission projects and interconnectors granted the cap and floor regime.

  • Published: 13th Feb 2019
  • Decisions
  • 2 Associated documents
This document sets out Ofgem’s final decision on ElecLink Limited’s application for certification.

  • Published: 2nd Oct 2018
  • Open letters and correspondence
  • 4 Associated documents
This letter provides an update on progress made by interconnector projects granted a cap and floor regime in our first application window.