Interconnector costs being understated, report warns
The drawbacks of progressing further interconnector projects are receiving “inadequate attention”, a report by Aurora Research has claimed. Published on Monday 8 February, the Dash for Interconnection report warned that consumers incurred significant costs from new projects, as their subsidies and charge exemptions were financed through taxes and electricity bills. It estimated that these costs were “big enough to make the net GB welfare impact of most new interconnector projects negative”. Aurora also explained that total European CO2 emissions would increase as gas-fired generation in GB was undercut by coal in mainland Europe, which faced a lower carbon price.