Energy imports poised to hit record after power stations mothballed

Britain is poised to import a record amount of energy from France and other European countries this summer after mothballing a host of power stations.

The French state-owned operator EDF will sell much of the surplus power from its nuclear plants to the UK in the coming months after taking advantage of new undersea cables and a lack of domestic capacity, according to a new report from National Gas.

It said that the demand for gas in the UK was predicted to fall from 33.3 billion cubic metres (bcm) between April and September last year to 29bcm this year – a 10pc decline – because foreign energy is filling the gap instead of gas-fired plants in the UK.

Meanwhile, electricity imports are predicted to jump by 6.6 terawatt hours, potentially reaching a new summer record.

National Gas said: “This increase in electricity imports is being driven by increased availability of French nuclear generation along with an overall increase in capacity of interconnectors.”

Interconnectors are high voltage cables that link the electricity systems of neighbouring countries, allowing power to be traded across borders.

Britain now has three interconnectors to France, plus others to Belgium, Norway, the Netherlands, Northern Ireland and Ireland.

Another, the Viking Link interconnector from the UK to Denmark, went into operation in December, sharply increasing the UK’s capacity for importing and exporting electricity.

However, the flow is mostly one way, into the UK, meaning an increasing proportion of British consumers’ power bills is flowing out of the UK to utilities overseas.

The UK spent £3.5bn on electricity from France, Norway, Belgium and the Netherlands last year, accounting for 12pc of net supply, according to earlier research from London Stock Exchange Power Research.

This week import levels have risen to 14-15pc of UK electricity – including 8.3pc from France and nearly 4pc from Norway, according to National Grid data.

A key bonus of the shift to overseas power is a cut in greenhouse gas emissions. 

The National Gas report said: “The continued growth of renewable (wind and solar) and electrical interconnector capacity in GB has vastly reduced the need to continually use gas as one of the components of power generation. Therefore, gas demand for electricity generation has reduced significantly over recent years.

“It is, however, important to remain aware that renewables [output] is entirely dependent on weather conditions so Great Britain still needs gas as its key source of flexible power to ensure energy security for days where the wind isn’t blowing.”

A separate Summer Outlook report from National Grid Electricity Supply Operator (ESO) confirmed the growing reliance on electricity from overseas – pointing out that French imports were often cheaper than UK sources, including renewables.

It said: “Electricity flows through the interconnectors are primarily driven by the price differentials between markets. Typically, during the summer, prices in Great Britain are higher than those in European markets, leading to interconnector imports.

“The fall in electricity prices reflects reduced pressure on global gas supplies and high French nuclear availability.”

Britain’s capacity to generate electricity has been impacted by the closure of coal-fired power stations such as West Burton A in Nottinghamshire last March and nuclear stations such as Hinkley Point B in late 2022.

Rishi Sunak, the Prime Minister, has vowed to build more gas-fired plants in the coming years in an effort to fill the gap.

A second key problem is that the National Grid transmission network is incapable of carrying the power generated by wind farms in Scotland or offshore to England’s power-hungry cities. Such failures push up the price of UK power, making it more expensive than imports.

Interconnector cables are designed to boost the collective resilience and energy security of neighbouring countries, with electricity able to travel in both directions.

But closures of British power stations means the traffic is increasingly one-way – into the UK.

Another new cable runs from Blyth in Northumberland to the Norwegian village of Kvilldal – enabling the UK to import low-carbon electricity generated by Norway’s hydroelectric plants.

Such links help reduce UK greenhouse gas emissions because French electricity is generated largely through nuclear power, and Norway uses hydroelectricity.

However, they have a negative impact on the UK’s balance of payments and mean that Britain is funding companies and jobs in other countries.

In the medium term experts predict further rises in the UK’s reliance on power imports, mainly from the European Union, peaking around 2025.

In the longer term, the UK’s reliance on imported electricity may be reversed if its ambitions for offshore wind farms are realised.

It has pledged to expand capacity from around 14 gigawatts now to 50 gigawatts by 2030. Many industry experts regard this as unrealistic, but say the target could be reached by the mid-2030s.

This would turn the UK into a net exporter of electricity, although it would still need a safety net of gas-fired power stations to provide power during periods of low wind.