Is energy the new single currency for Europe?

In response to Ed Davey's comments about an integrated European power network, Darren Farrar from Schneider Electric, comments on the reality of his suggestions.

As the UK continues to strive toward a low carbon energy supply, while maintaining security of supply, government has proposed a number of potential solutions. To understand each we need to go back a few decades, before the privatisation of the market place and the establishment of the energy networks. Until this point, homeowners would use coal and wood to heat their homes, all usually purchased locally store or in some cases from the local mine.

As technology advanced, the networks became centralised with both heat and electricity generated from a grid of power stations and then transmitted to homes across the UK. On one hand and somewhat ironically, the government is now looking back to the de-centralised model, enabling homes and businesses to generate power on a local and community scale rather than by the larger power networks.

Yet on the opposite end of the scale, with security of supply an increasing threat, the Government is also considering a more centralised European model in the form of an integrated network whereby we utilise the spare energy capacity of our neighbours and vice versa. In an ideal world, this would become like an energy exchange with power travelling both up and down the networks but unfortunately it is more likely to be a one way stream and the UK becoming a net importer of energy once again.

In truth, this system could work but it's not a short term fix and could take many years and huge investment to set up correctly. Equally, as a net importer we would become open to the price and energy fluctuations that we've seen with gas, is this a route we want to take?

Again it's a simple case of not putting all our eggs in one basket - continue our investment in gas and renewables and factor in a potential European energy network within the decision making process. It has become all too easy for politicians to become idealistic when it comes to energy and follow the latest whim but the more they do so, they more it feels like the government is attempting to cover up for its own policy deficiencies.

What the energy industry needs is some solid investment. To improve our existing transmission and distribution networks, on both a local and national level, to upgrade where necessary and to build new and improved power plants and stations that will enable the UK to stand on its own energy legs. There are political, engineering and financial factors at play and while we can never expect them all to work harmoniously together, surely there must be some unification?

In the longer term, it will be the customer who must pay for the developments of our energy infrastructure and at a time when budgets are already stretched and some party leaders calling for a price freeze. The strategy we take must make sense on an economic, political and technology basis and until this happens it feels like we will continue to go round in circles.

LINK:	http://www.schneider-electric.co.uk/sites/uk/en/company/news/news-view...
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