Interconnector policy review: Working paper for Workstream 3 - wider impacts of interconnection
- Closed (awaiting decision)
- Closed (with decision)
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 3 review. We also published our working paper for Workstream 4 today, and the working papers for Workstreams 1 and 2 were published on on 18 June 2021 and can be found in the related links.
This working paper summarises our analysis, findings, and provisional recommendations from workstream 3 - review of the wider impacts of interconnection. In this workstream we have considered the range of impacts that interconnectors currently have, or could have in the future, on the energy system beyond the market economic effects that are assessed through traditional socio-economic market modelling. Specifically, we have considered i) the contribution towards decarbonisation, ii) the potential to provide flexibility in the energy system, iii) impact on system operability, and iv) contribution to security of supply.
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.