Since 2021 the UK has been importing electricity from Norway
However, Norway has introduced new strategies that would allow the country to completely cut electricity exports in order to protect its own domestic supplies. This would cause serious issues when it comes to the UK’s energy security which is already causing issues with energy prices in the UK.
The UK is connected to Norway via interconnectors running between the two countries allowing supplies to flow through. The hydroelectric plant in Norway that is connected to the national grid is vital for the ESO to be able to keep the electricity running in the UK when domestic electricity generation is low.
In situations where Norway’s own supplies are at risk due to extreme weather for example a heat wave that leads to drastically low water levels, in this case, this new plan would allow them to block exports in order for them to protect their own security of supply.
The PM of Norway said that they need to concern themselves with their own supplies in cases of emergencies thy need to ensure their reservoirs have enough water and they have enough power to avoid blackouts in their country before they export to their countries.
As well as Norway possibly reducing power if we see extreme heat this summer, France could also do the same. Last summer the UK’s energy security was low in the summer due to Frances’s reservoirs overheating, causing less electricity to be generated from nuclear power stations.
As there is more chance this summer that both countries could have to reduce exports to the UK the government has looked at a “reasonable worst-case outlook”. This is to ensure there is plans in place for the UK’s grid which could be brought forward if imports drop.
How will this affect your business?
If it comes to the UK having fewer imports this summer the power in the UK will most likely stay on, however when energy security drops the wholesale energy prices tend to rise.
This could push up wholesale energy prices this summer in the UK. As a business, we would suggest you be alert to the energy market this year to ensure you get your energy contracts at a time when bills are as low as possible.
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