Interconnector policy review: Working paper for Workstream 2 – socio-economic modelling

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Transmission Network


In August 2020, Ofgem launched a review of its regulatory policy and approach to new electricity interconnectors. The objectives of the review are two-fold: firstly, to establish whether there is a need for further GB interconnection capacity beyond those projects currently with regulatory approval; and secondly, to consider Ofgem’s approach to the regulation of future GB interconnection.  The review has been broken down into four workstreams considering specific aspects of regulatory policy and decision-making. This working paper consultation is for Workstream 2 of the review. We also published our working paper for Workstream 1 today and will publish Workstreams 3 and 4 in the coming weeks.

The second working paper summarises our analysis, findings, and provisional recommendations from workstream 2 – socio-economic modelling.  In this workstream we procured Afry management consultants to undertake market modelling to help us determine whether there is likely a need for further interconnection from a socio-economic standpoint.  We have considered the outputs of this modelling alongside other relevant public modelling studies, including the National Grid Electricity System Operator’s Networks Options Assessment (NOA) and the ENTSO-E Ten Year Network Development Plan (TYNDP). 

We are now seeking stakeholder feedback on our analysis, proposed conclusions and initial proposals set out in this public consultation. We will then consolidate the findings across each workstream into a single decision paper, which will provide our final proposals for the future regulation of interconnectors in GB.

Update (02/07/21) - We have added a new version of the data book in the subsidiary documents section of this page. The differences from the original version are as follows: 1) header names for the “Base Case” columns have been replaced by “Net Zero” across all tabs, which clarifies which data was used to model the Net Zero scenario; and 2) the demand tab presents new data for the electricity demand of connecting countries alongside those for GB in the modelled years.

Please note that we have extended the response date limit to 28 July 2021 so that stakeholders have time to analyse the new information.

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Andrew Bullimore

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