LONDON, UK — Great Britain’s energy regulator, Ofgem, has approved two new electricity interconnectors between Britain and Ireland, bolstering energy links and security across the islands. These projects, one connecting Scotland to Northern Ireland and another linking Wales to the Republic of Ireland, are set to enhance grid resilience and enable cross-border energy transfers, supporting the United Kingdom’s drive toward energy independence and stability.
This approval signals a significant development in Britain and Ireland’s energy cooperation, although it comes with a slight cost increase for GB consumers.
Ofgem Approval and Consumer Impact
After initially rejecting the projects due to concerns about the financial impact on British consumers, Ofgem reassessed and approved the plans, citing the security of energy supply as a key factor. Akshay Kaul, Ofgem’s Director General for Infrastructure, emphasized that only projects offering clear benefits in “value, viability, and energy security” were given the green light.
These new links are part of a broader Ofgem approval that includes five interconnection projects, which are expected to add between £2 and £5 per year to consumer electricity bills in Great Britain from 2030 to 2055.
The New Interconnection Projects
The Scotland-Northern Ireland interconnector, known as LirIC, is being developed by Transmission Investment and aims to provide up to 700 megawatts (MW) of capacity between the Irish Single Electricity Market and Great Britain’s wholesale electricity market. This additional capacity is designed to enhance the flow of energy between the two islands, especially during peak demand periods.
Transmission Investment’s Project Director for LirIC, Keith Morrison, expressed optimism, saying, “We’re pleased with Ofgem’s announcement and its recognition of the benefits that LirIC will bring to consumers in both Great Britain and Northern Ireland.”
Additionally, a Wales-Republic of Ireland interconnector will enable further energy cooperation, adding to the existing network of cross-border electricity projects in the region. The Wales-Ireland link, known as Greenlink, will soon be operational, contributing 500 MW of capacity.
How the ‘Cap and Floor’ Regime Works
Both new interconnectors will be governed by Ofgem’s “cap and floor” regulatory framework. This regime is designed to provide stability for investors while limiting costs to consumers. Under the framework, developers are guaranteed a minimum return on their investment (the “floor”) while their revenue is capped at a certain level, ensuring a fair balance of risk and return over a 25-year period.
Next Steps and Project Milestones
The projects have cleared a significant regulatory hurdle with Ofgem’s approval but must still navigate further planning and licensing processes. Transmission Investment has outlined that the coming months will involve completing additional regulatory and licensing requirements to bring LirIC closer to construction.
These projects build on existing infrastructure, including the 500 MW Moyle Interconnector between Scotland and Northern Ireland, which has been operated by Mutual Energy since 2001. The Greenlink project between Wales and the Republic of Ireland is also expected to be fully operational shortly, further integrating the electricity markets of the British Isles.
Why the Interconnections Matter for Energy Security
The newly approved interconnections align with efforts to secure a stable and diversified energy supply amid the UK’s ongoing energy transition. By facilitating a stronger link between Great Britain and the Irish energy markets, these projects offer increased flexibility in managing supply and demand across the islands. This cross-border cooperation also enables a more balanced distribution of renewable energy resources, helping reduce overall carbon emissions.
