PARIS (Reuters) – Private funding agency Aquind is pushing forward with plans to construct a 1.four billion euro (1.22 billion kilos) high-voltage undersea energy cable between Britain and France regardless of uncertainties created by Brexit, its managing director mentioned on Tuesday.
Kirill Glukhovskoy instructed Reuters the mission was within the strategy of acquiring planning permits and marine area authorisations from each international locations, and nonetheless as a result of full in 2022.
He mentioned a call by French power market regulator CRE in December to refer Aquind’s request for exemption to the EU Agency for the Cooperation of Energy Regulators (ACER) wouldn’t have an effect on the two,000 megawatt mission.
Under EU rules, revenues generated by energy transmission operators have to be used to ensure availability and reinvested to extend interconnection capability.
Glukhovskoy mentioned that, as a non-public operator, Aquind, which is predicated in Britain, was in search of the exemption in order to make use of income to repay traders.
The company had mentioned it will proceed to work with CRE and British regulator Ofgem, in addition to ACER and the European Commission, for a constructive and well timed choice.
CRE mentioned in December that Aquind had approached it and Britain’s Ofgem to request the exemption on grounds that the mission would profit the European neighborhood.
However, the French regulator mentioned the results of Brexit on the power markets and specifically on the foundations of entry and interconnections between Britain and the continent couldn’t be anticipated, and so referred the matter to ACER.
“Our analysis has shown that Brexit underscored the need for such transmission facilities,” Glukhovskoy mentioned in an interview.
He mentioned the mission was being funded by sponsors within the improvement stage, however would increase more cash by fairness or debt and produce in additional companions within the implementation part.
Britain is at present linked to France by the two,000 MW IFA excessive voltage hyperlink, owned by French state community operator RTE and Britain’s National Grid. Another hyperlink IFA2, is below development and anticipated to be full by 2020.
Glukhovskoy mentioned Aquind’s cable and three different deliberate personal energy cables throughout the Channel have been responding to demand for energy interconnectors, and would enhance competitors within the energy market and enhance safety of provide.
“What we see clearly is that the asset will be used very well,” he mentioned.
($1 = zero.8143 euros)
Reporting by Bate Felix; Editing by Kevin Liffey