EU-UK: NESO and ENTSO-E agreement for interconnection and regulation of the electricity grid

The agreement concluded between the National Energy System Operator (NESO) and ENTSO-E marks a new stage in the coordinated management of the electricity interconnection between the United Kingdom and the European Union, integrating shared regulatory and security axes.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The National Energy System Operator (NESO) and British transmission system operators have signed a new working agreement with the European Network of Transmission System Operators for Electricity (ENTSO-E). This cooperation aims to strengthen the electricity interconnection between Great Britain and the European Union, establishing a common framework for the regulation, planning, and security of networks.

A regulatory framework adapted to the post-Brexit context
The agreement comes in a context where energy coordination between the United Kingdom and continental Europe remains essential, despite the UK’s departure from the European Union. NESO will represent all British transmission system operators at technical meetings with ENTSO-E. The collaboration focuses on securing electrical infrastructure, improving the planning of offshore networks, and enhancing the efficiency of existing and future interconnections.

The arrangement aligns with other mechanisms already in place, such as agreements between British gas operators and the European Network of Transmission System Operators for Gas (ENTSOG), or between the Office of Gas and Electricity Markets (Ofgem) and the Agency for the Cooperation of Energy Regulators (ACER). This approach aims to ensure the continuity and reliability of energy exchanges between European and British markets.

Optimisation of electricity flows and joint planning
The partnership provides for strengthened cooperation in infrastructure planning, with a particular focus on the development of offshore energy and the integration of networks. ENTSO-E, which brings together forty system operators from thirty-six countries, manages the Continental Europe Synchronous Area (CESA), one of the world’s largest synchronous electrical zones, covering more than four hundred million users in thirty-two countries.

NESO is thus positioned at the centre of technical dialogue with European partners, ensuring the consideration of British interests in the management of interconnections and the preparation for changes in the energy mix. Strengthened cooperation will allow for the anticipation of regulatory and integration needs required for the evolution of the European electricity system.

Operational continuity and joint governance
Since Brexit, British system operators have no longer been active members of ENTSO-E, with the exception of the System Operator for Northern Ireland (SONI). However, the Trade and Cooperation Agreement between the United Kingdom and the European Union recognised the need for continued collaboration on energy issues. The signing of this new agreement responds to this need, providing an operational framework for information sharing and joint network regulation.

The system put in place illustrates the ability of the parties to adapt the governance of the electricity sector, taking into account the challenges posed by the growth of renewable energies, security of supply, and the increasing complexity of cross-border flows. The next steps will focus on strengthening technical synergies and securing strategic interconnections between the two energy areas.

Shanghai Electric signed a framework agreement with Siemens to develop medium- and low-voltage equipment, aiming to modernise China’s power grids and support national decarbonisation targets.
Naturgy secures major financing from the European Investment Bank to modernise Panama’s power infrastructure, in a strategic project supporting grid reliability and regional integration.
A $430mn funding package will be allocated by the World Bank to Tunisia to modernise its electrical grid and strengthen its integration with renewable capacity, aiming to attract $2.8bn in private investments.
German grid operator 50Hertz commits to nearly 30 GW of new connection capacity by 2029, amid network saturation and calls for reforming access procedures.
Thailand’s pending approval of transmission fees is holding back progress on an energy project linking Laos to Singapore via Malaysia, amid political uncertainty.
Amman says it is ready to provide electricity and natural gas to Lebanon using its already operational infrastructure, pending the completion of regional procedures.
Jordan can export electricity if three conditions align: fuel availability for its power plants, measurable system surplus, and a functional transit framework via Syria to Lebanon with clear metering and settlement rules.
The Egyptian government and UAE-based K&K have signed an agreement to finalise studies for an electricity interconnection project linking Egypt to Europe via Italy.
AEP Transmission will finance the upgrade of high-voltage lines across five states through a federal loan, aiming to meet a sharp rise in industrial electricity demand.
Israeli company Prisma Photonics has raised $30mn in a funding round led by Protego Ventures to develop its artificial intelligence-based detection system for power grids and critical infrastructure.
A report estimates $2.3 billion in avoidable economic losses by 2040 if Southeast Asia strengthens its electricity infrastructure through smart grids.
The New Providence power grid modernisation project is progressing 28% faster than expected, with Bahamas Grid Company reporting measurable gains in service quality and network reliability.
The Seine-Maritime prefecture denies Aquind access to public maritime domain, halting a €1.4bn ($1.47bn) Franco-British power interconnection project.
A €12mn technical grant will support STEG in supervising ELMED, the first submarine power cable between Tunisia and Italy, a strategic project co-developed with Italy’s TERNA and valued at €921mn.
The blackout that hit the Iberian Peninsula in April originated from a series of unprecedented surges. The European report points to a sequence of technical failures but does not yet identify a primary cause.
The 600MW submarine interconnection between Tunisia and Italy enters its construction phase, marking a logistical and financial milestone for the Euro-Mediterranean electricity market.
Ukrenergo plans to raise electricity transmission tariffs by 20% in 2026 to cover technical costs and obligations tied to international loans.
The ASEAN Power Grid enters a strategic phase with renewed support from regional and international institutions to structure electricity trade among member states and secure the necessary investments.
The three countries will hold a meeting in October to unlock interconnector projects, following a major blackout that exposed the fragility of the Iberian Peninsula’s electricity integration.
Up to 55% of Europe’s electricity system remains vulnerable due to weak interconnection capacity, increasing the risk of widespread outages in several countries, according to a new report.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.