Last month Nemo Link became the first of National Grid’s six interconnectors to trade power for 2026 with the early launch of our auctions. These auctions marked the first time 2026 capacity was traded on the GB – BE border and offered 50MW in each direction.
Nemo Link, the fourth interconnector built in the UK has recently celebrated five years in operation – a key milestone for the business and an opportunity for us to reflect on what we have achieved and look ahead to what the next five years may bring.
Along with our partners, Elia, we have plenty more to celebrate; our link has proven extremely reliable with a 99.5% availability rate – outside of planned maintenance outages – over the past five years, proving just how valuable interconnectors like ours can be.
It’s widely known that interconnectors are critical to reduce carbon emissions, maximise renewables, and enable consumers to benefit from lower energy prices, but they also play a crucial role in energy security for both countries to which they connect. Since its launch in January 2019, Nemo Link has transported more than 29TWh of electricity between GB and Belgium.
Beyond just Nemo Link, we estimate that there were 12 half-hourly periods in 2023 when GB interconnections were essential to ensuring supply met demand.
The next five years will bring great change for the energy industry as countries across Europe work to meet ambitious renewable energy targets and connect more generation to their energy grids. Interconnectors such as Nemo Link, have a key role in connecting both countries and markets, enabling the flow of affordable, clean energy from where it is in abundance to where it is needed.
Our new auction approach, piloted in 2023, has proven popular with traders who have indicated the additional two-year offering provides great benefits to the market by allowing them to complement their hedging strategies in the forward market.
Doing so allows for better risk management by hedging exposure to price fluctuations in advance. This increases stability and greater predictability within the market and brings huge benefits for Nemo Link and customers by enabling us to secure up to 20% of capacity two years ahead.
With the advent of “offshore hybrid assets” or multi-purpose interconnections, not only nations will be linked, but offshore wind farms will be as well. Creating an integrated, coordinated offshore grid is a top priority of ours and we’re working closely with the government to make sure we’re delivering the most effective system with the least impact on coastal communities that we can.
As we move to a more connected energy system, it is vital we learn to adapt, listen and innovate to find new, more suitable ways to trade. The work we are doing with Nemo Link will pave the way for future projects to realise the potential of the North Sea. These include a proposed second link between the UK and Belgium, which would connect additional wind power from planned projects in both countries and Europe.
There’s lots to learn going forward but there is little doubt that for Nemo Link, the next five years will be as exciting as the first.
