UK and EU energy firms are urging their governments to overhaul the post-Brexit trading set up in a bid to construct a North Sea “green power hub” and unlock investment.
Some 20 top power firms and lobby groups have written an open letter to European and British energy ministers to urge them to prioritise a more efficient EU-UK electricity trade.
“We are concerned that the EU and the UK will not achieve their objectives of fully developing the potential of the North Seas as long as electricity is traded using sub-optimal market mechanisms,” they wrote.
It comes as the UK’s Prime Minister Sir Keir Starmer and EU Commission president Ursula von der Leyen are set to hit refresh on their relationship following the July general election.
Signatories to the letter included the UK’s National Grid, Renewable UK and Energy UK, as well as the EU’s Wind Europe and Energy Traders Europe.
They warned of “crucial outstanding issues” which – if fixed – “would create massive benefits to both consumers and industry” and help the UK and EU meet respective climate goals.
Establishing “more efficient electricity arrangements between the European Internal Energy Market… and the GB market” is “of particular urgency to unlock investment,” they wrote.
“Reestablishing a system of price coupling between the IEM and GB markets is the only market mechanism able to realise the untapped potential of the North Seas,” they added.
James Matthys-Donnadieu, from elia group, which signed the letter, commented: “Market coupling and price convergence are prerequisites for successful UK-EU partnerships, as they will enhance efficiencies and generate greater social benefits.
“As we progress towards decarbonisation, such cooperation will make our European energy system more independent, sustainable, and resilient.”