On the day of the European Policy Community Summit in which European Heads of State will discuss energy security, Energy UK is urging the UK and the EU to maximise the potential benefits for both sides of increased co-operation and closer links in the energy market.
In ‘The Power of Partnership: UK-EU energy cooperation for a clean and secure future’, Energy UK highlights recent examples of how UK-EU cooperation has delivered mutual benefits through cutting costs, emissions, and ensuring countries can always meet energy demand through the trading and transportation of energy in both directions.
It adds that more efficient electricity trading arrangements and working collaboratively on clean North Sea energy infrastructure, can help the UK and EU cut the cost of meeting their mutual offshore wind target by €13bn.
However, the paper also warns that if pledges to link respective emissions trading systems (ETS) and harmonise trading arrangements are not fulfilled, both sides stand to lose out on reaching their shared goals. This could lead to extra costs for UK energy exports, hurting British businesses, and in turn increasing the EU’s own costs by increasing their need for fossil fuel imports, in addition to deterring investment in clean energy projects.
The report also reveals that:
- More than a quarter of the gas supply Europe lost as result of Russia’s invasion of Ukraine was replaced by exports from the UK, who also helped ensure France had sufficient supplies of electricity when its nuclear output was curtailed by maintenance and industrial action
- Linking the ETS and so avoiding unintended consequences from the introduction of the Carbon Border Adjustment Mechanism (CBAM) could save the EU €2bn per year by reducing the need for gas imports to replace wasted UK renewable electricity.
- Great Britain relies on interconnectors to supply nearly a tenth of its peak demand
Energy UK’s Deputy Director, Adam Berman:
“There’s no getting away from the fact that the UK and EU remain deeply interconnected. As our paper clearly shows, both the UK and EU benefit from our existing energy relationship to balance seasonal supply and demand, and support each other in times of crisis. At the height of the energy crisis, the UK played a pivotal role in keeping lights on and homes warm across Northern Europe.
“As the UK and EU move toward Net Zero, cooperation will enable both sides to achieve their climate objectives more quickly and at lower cost. We’re urging those at today’s Political Community summit to take the opportunity to press ahead on closer links. The energy crisis has shown how working together can be a win-win for consumers, industry, and Europe’s broader foreign policy objectives.
“The UK Government have been clear that after years of acrimony, there is a clear need to reset relations with the EU. There’s no better place to start than closer cooperation on energy and climate change, areas in which both sides share the same goals and aspirations for the future – so there’s every reason to press ahead without delay”.
Notes to editors
- Energy UK is the trade association for the energy industry with over 100 members – from established FTSE 100 companies right through to new, growing suppliers, generators and service providers across energy, transport, heat and technology. Our members deliver nearly 80% of the UK’s power generation and over 95% of the energy supply for 28 million UK homes as well as businesses. The sector invests £13bn annually and delivers nearly £30bn in gross value – on top of the nearly £100bn in economic activity through its supply chain and interaction with other sectors. The energy industry is key to delivering growth and plans to invest £100bn over the course of this decade in new energy sources. The energy sector supports 700,000 jobs in every corner of the country. Energy UK plays a key role in ensuring we attract and retain a diverse workforce. In addition to our Young Energy Professionals Forum, which has over 2,000 members representing over 350 organisations, we are a founding member of TIDE, an industry-wide taskforce to tackle Inclusion and Diversity across energy.