...

UK power prices soar after key cable hit by blaze




  • In Business
  • 2021-09-16 08:17:51Z
  • By BBC

A key electricity cable between Britain and France has been shut down, sending wholesale energy prices soaring.

National Grid said a fire and planned maintenance at a site near Ashford in Kent means the cable will be totally offline until 25 September.

Half of its capacity, or one gigawatt (GW) of power, is expected to remain unavailable until late March 2022.

On Wednesday, British electricity prices for the following day jumped by 19% to £475 per megawatt hour (MWh).

The fire at the Interconnexion France-Angleterre (IFA) site broke out in the early hours of Wednesday. The site was evacuated and there were no reports of casualties.

After the fire an electricity interconnector running under the English Channel was "not operating", the National Grid said in a statement.

Electricity interconnectors are high-voltage cables that connect the electricity systems of neighbouring countries, and allow them to share excess power.

A spokesperson for National Grid's electricity system operator, which balances power supplies in the UK, said it expects to "continue supplying electricity safely and securely" despite the incident.

The link can carry up to 2GW of power, and had been importing electricity from France in recent days, after UK prices hit a record high of £540 per MWh on the wholesale energy market.

Price volatility

The jump in prices has been fuelling concerns about inflation and the potential impact on businesses just as the country's economy starts to recover from the worst effects of the coronavirus pandemic.

Analysts are now closely watching National Grid's efforts to get the facility fully back online as winter approaches and with it higher energy demand.

Glenn Rickson, head of European power analysis at S&P Global Platts Analytics, told Reuters: "The outage is going to lift the potential for price volatility as long as it's offline... and of course demand will get higher as we move further into winter."

In addition to higher electricity prices, gas prices have also been soaring. On Wednesday, a major fertiliser manufacturer, CF Industries, said it was halting operations at its UK plants at Billingham and Ince "due to high natural gas prices".

It added it did not have an estimate for when production would resume.

Net importer

National Grid said its investigation into the fire at the IFA site was continuing and it would "update the market with any changes as necessary".

Britain is a net importer of electricity and near neighbour France is its biggest supplier of power through the interconnectors that run under the English Channel.

The IFA2 interconnector, a second link between Britain and France, is currently operating at its full capacity and not affected by the problem.

The 1GW connection is a £700m shared investment with French power firm RTE and the UK's fourth power exchange with continental Europe.

Existing UK interconnectors

pylons
pylons  
  • IFA (England - France): Opened in 1986 (2GW capacity)

  • Moyle (Northern Ireland - Scotland): 2001 (0.5GW)

  • BritNed (England - Netherlands): 2011 (1GW)

  • EWIC (Wales - Ireland): 2012 (0.5GW)

  • Nemo (England - Belgium): 2019 (1GW)

  • IFA2 (England - France): 2020 (1GW)

You may also be interested in:

COMMENTS

More Related News

European nations strive to cushion energy price hikes
European nations strive to cushion energy price hikes

Price freezes, tax cuts, energy payments or credits, targeted aid... in the face of soaring energy prices European nations are deploying a variety of steps...

New Zealand trade deal
New Zealand trade deal 'another nail in the coffin' of UK mussels industry
  • World
  • 2021-10-22 15:33:10Z

The New Zealand trade deal is another "nail in the coffin" of British mussels farmers, who have warned they face being forced out of business by a...

A jab in each arm: France vaccinates against flu and COVID
A jab in each arm: France vaccinates against flu and COVID
  • US
  • 2021-10-22 09:33:16Z

Worried that the flu and COVID-19 could trigger a winter-time double-whammy of new infections and deaths, France is forging ahead with a nationwide...

Neo-Nazis And Other White Supremacists Are Finally Going To Court Four Years After The Deadly "Unite The Right" Rally In Charlottesville
Neo-Nazis And Other White Supremacists Are Finally Going To Court Four Years After The Deadly "Unite The Right" Rally In Charlottesville
  • US
  • 2021-10-21 19:20:47Z

"This really will be the first time the entire story of Charlottesville will be told out loud," said Karen Dunn, co-lead counsel for the plaintiffs.View...

Thursday evening UK news briefing: Quarter of Covid hospital patients not admitted with virus
Thursday evening UK news briefing: Quarter of Covid hospital patients not admitted with virus
  • World
  • 2021-10-21 16:32:15Z

European battles | France will block the UK's associate membership of the EU's €100 billion research programme unless Britain grants it more post-Brexit...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business