Oil & Energy
‘Invisible Energy Highways Could Usher In New Era Of Shared Power’
The world is racing to reduce its reliance on fossil fuels, and as a result, demand for undersea electricity cables could soar.
The first of many new undersea cables is set to be built between the UK and Germany to help the two countries to ease bottlenecks in the renewable energy supply chain.
These new “invisible energy highways” have the potential to usher in a new era of power-sharing for some of the world’s biggest economies. Undersea electricity cables could become increasingly common as governments drive their energy strategies towards renewables.
As countries develop their wind and solar power industries, there will be a greater incentive to build undersea cables that can promote power-sharing across regions.
The first of many new major cables is set to be built between the U.K. and Germany at an anticipated cost of $1.95 billion. The NeuConnect project will allow for 1.4 GW of electricity to go to and from the two countries through subsea cables covering a distance of over 450 miles.
The project has been dubbed an “invisible energy highway”, allowing for power-sharing across the U.K. and Germany. The cable will run from the Isle of Grain in Kent in England with the German region of Wilhelmshaven, crossing British, Dutch, and German waters. Once constructed, it could provide power for up to 1.5 million homes.
The approved contracts include work on the cables and converter stations, with both Siemens and Prysmian winning contracts for work on the project.
Siemens will supply a high-voltage direct current (HVDC) transmission system, while Italian cable manufacturer, the Prysmian Group, will manage the design, manufacture, installation, testing, and commissioning of the NeuConnect Interconnector.
Construction is expected to start this year, allowing for the U.K. to “tap into the vast energy infrastructure in Germany, including its significant renewable energy sources.” In addition, “the new link with Britain will help ease current bottlenecks where wind turbines are frequently powered-down due to an excess of renewable energy being created.”
Tim Holt, from the Siemens Energy board, explains the project, “if we want to achieve the switch to renewable energy quickly, safely, and affordably, we can no longer afford to have to curtail wind energy due to grid bottlenecks and have to cover demand elsewhere with fossil-based power generation.”
Further, “The electricity connection between Germany and Great Britain represents the increasing integration of the European electricity market. Efficient and cross-border electricity connections unite the countries in their efforts to decarbonise. They are the perfect example that we can only achieve the energy transition together.”
The NeuConnect consortium, led by Meridiam, Kansai Electric Power, and Allianz Capital Partners, has been discussing the development for some time but sanctions on Russia have driven European governments to seek alternative energy sources much more rapidly.
As well as looking for alternative oil and gas supplies, several governments are strategising over how to accelerate their renewable energy projects, and are even discussing increasing nuclear capacity for the first time in years
However, this is not the first undersea cable to be approved in Europe, with operations beginning, last year, on a giant undersea cable expected to link the U.K. with Norway. Measuring 450 miles, the $1.86 billion North Sea Link (NSL) is a joint venture between Britain’s National Grid and Norway’s Statnett.
The two countries want to share Norway’s hydropower and the U.K.’s wind energy resources, allowing each of them to optimise output to meet demand. The National Gridexplained, “When demand is high in Britain and there is low wind generation, hydropower can be imported from Norway.”
Both the U.K. and Norway are big oil and gas players. But Norway says that its electricity is sourced from 98 percent renewable energy output, mainly hydropower. Meanwhile, in the U.K., Prime Minister Boris Johnson has stated the aim for 100 percent of Britain’s electricityto come from renewable sources by 2035.
And plans for subsea cables are not only being made in Europe but are extending across different continents. Last year, Greece and Egypt announced that they were in talks about a potential 2 GW submarine interconnector running across the Mediterranean Sea to link the countries’ grid systems.
This would be the first of its kind to link Europe with Africa, showing the huge potential for greater inter-regional connectivity. And Greece is also embracing plans for a EuroAsia Interconnector, which would run from Israel to the Greek mainland through Cyprus.
When completed, the cable will measure 1,500km and transport between 1 GW and 2 GW of electricity between the regions, connecting power grids across Israel, Cyprus, and Greece.
Although early predictions expected the cable to be completed by 2022, new estimates suggest it will be finished in 2024, at a cost of almost $823 million. Funding will come partially from the EU and will support ending Cyprus’ energy isolation.
While several of these projects are in their infancy, with an increased need for greater energy security across Europe and the rest of the world, we can expect to see the acceleration of renewable energy and related projects over the coming years.
Governments around the globe have quickly come to realise their dependency on Russia for oil and gas, leading them to seek out alternative sources as well as to invest more heavily and rapidly in establishing renewable energy projects.
By: Felicity Bradstock
Bradstock reports for Oilprice.com
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
