The UK will have sufficient electricity supply this winter despite the Strait of Hormuz crisis, NESO, the country’s grid operator, said today.
“While we will continue to monitor global energy markets, households and businesses can be confident that electricity supplies remain secure,” NESO’s head of whole energy system resilience, Deborah Petterson, said in a statement, as quoted by Reuters.
The UK has, in recent years, become increasingly dependent on imported oil and gas as several successive governments prioritized a shift away from hydrocarbons to wind and solar, with these energy policies plus exorbitant taxation decimating oil and gas activity in the North Sea.
This has made its grid vulnerable to weather-related fluctuations in electricity generation from alternative sources and has pushed its energy import bill considerably. As luck would have it, while the UK generates almost a third of its electricity from natural gas, only 1% of its imports come from Qatar, Reuters noted in its report. On the flip side, the paralysis of gas flows out of Qatar has pushed spot market LNG prices substantially higher globally, affecting UK prices, too.
In the context of continued uncertainty about the resumption of normal oil and gas flows via the Strait of Hormuz, NESO said it expected the UK to remain a net electricity importer this winter, and electricity prices for Britons to remain higher than the average in continental Europe.
The UK imports electricity from France, Belgium, the Netherlands, Denmark, and Norway via a number of interconnectors that governments on both sides of the Channel see as crucial for Europe’s transition to low-carbon electricity. Indeed, building more interconnectors is a central tenet of the EU’s energy strategy, which the UK is, to all intents and purposes, a part of, despite it not being a member of the bloc anymore.
By Irina Slav for Oilprice.com
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