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The UK is poised to support a substantial new portfolio of offshore wind projects in the North Sea, joining forces with nine other European nations, including Norway, Germany, and the Netherlands.
Government officials state that this agreement will bolster energy security, offering a departure from what they term the “fossil fuel rollercoaster.”
Notably, some of the forthcoming wind farms will, for the first time, be interconnected with multiple countries via subsea cables known as interconnectors, a development proponents suggest will lead to reduced energy prices across the region.
However, this initiative could face scrutiny, as wind farm operators would gain the ability to selectively sell power to the highest bidder across participating countries, potentially driving up electricity costs during periods of tight supply.
Energy Secretary Ed Miliband is scheduled to sign a declaration on Monday at a summit in Hamburg, Germany, dedicated to the future of the North Sea, thereby committing the UK to the completion of the scheme by 2050.
Jane Cooper, Deputy CEO of the industry body RenewableUK, remarked that the deal would “drive down costs for billpayers” while significantly enhancing “the energy security of the UK and the entire North Sea region.”
In contrast, Claire Countinho, Shadow Energy Secretary, cautioned, “We cannot escape the fact that the rush to build wind farms at breakneck speed is pushing up everybody’s energy bills.”
While a network of undersea cables already connects the electricity grids of various European countries – the UK currently has 10 such cables – directly linking wind farms to multiple countries would mark a significant first.
Most energy economists concur that increased connectivity between the UK and other European grids is likely to reduce costs and improve security of supply.
A paper published earlier this month by the UK National Grid suggests that such an arrangement could reduce so-called constraint payments, which are made when wind farms are asked to curtail power generation due to grid congestion.
An independent report stated that UK consumers had realized savings of £1.6bn from the nine existing undersea cables linking the UK with Europe since 2023.
National Grid explained that these cables help mitigate price spikes because surplus energy generated during off-peak hours elsewhere can be sold cheaply to the UK, capitalizing on time zone differences.
However, interconnectors have faced opposition in Norway, where concerns have been raised that selling power abroad could reduce domestic supplies and, consequently, increase prices for Norwegian consumers.
To prevent this, the Norwegian government implemented new regulations restricting electricity exports when domestic supply is deemed at risk.
Norway also denied permission for a new interconnector to Scotland.
Nato and the European Commission are also participating in the summit, which is expected to include commitments to strengthen security for offshore energy infrastructure amid growing concerns about sabotage and unsafe maritime activities.
The agreement underscores Europe’s continued commitment to wind power, despite renewed criticism from US President Donald Trump, who again attacked what he called “windmills” during a speech at the World Economic Forum in Davos.
Three years ago, the North Sea countries pledged to develop 300 gigawatts (GW) of offshore wind capacity. This new deal means 100GW of the total will be built jointly. It is expected to say 20GW of that should be under way by 2030.
According to a report released last year by RenewableUK, China currently leads the world in offshore wind, with 43GW of the world’s 83GW of installed capacity.
The UK ranks second, with nearly 16GW already operational. The UK government has awarded contracts for an additional 20GW, including 8.4GW agreed in a record-breaking bidding round earlier this month.
The government faced criticism from the Conservatives for “locking in” high offshore wind prices.
Reform has consistently criticized the cost of net zero, while the Liberal Democrats and the Green Party both support the expansion of renewables to address climate change and stimulate green jobs.
The SNP and Plaid Cymru also support the growth of offshore wind, but argue that Scotland and Wales should have control over their energy resources.
Additional reporting by Miho Tanaka.
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