The energy industry in the UK just cannot seem to catch a break. Just recently, it was dealt another huge blow after British utility company SSE announced plans to drop a huge project that was supposed to be inter-connected between Britain and Norway. According to SSE, it decided to drop this project so it can focus more on investment in domestic markets.
The statement that the company released was put out on Tuesday. It said that it will no longer have the financial means available to develop the NorthConnect project. It added that SSE will use this money elsewhere. So now the question is: Just what is SSE spending this money on that is more important than the NorthConnect project? After all, this project was going to be a huge boost to the energy industry in the UK.
The answer to that question, at least in the eyes of SSE, is to focus its funding on its core markets. This would mean focusing this money on both Britain and Ireland. This is good, because investments have to be made specifically for these areas as well. However, everyone knows SSE too well to think that this is the only reason why it chose to pull out of the NorthConnect project.
SSE went on to make note that another reason it will pull out of this inter-connected project is due to regulations. It feels that the regulations lack clarity on such an inter-connected network. This led to the company feeling like the big cable network between Britain and Norway isn’t right at this point in time.
Of course, not everyone got cold feet about this inter-connected project like SSE. In fact, SSE’s former partners in the NorthConnect project (Vattenfall, E-Con Engeri, Lyse and Agder Energi) said they remain fully committed to this project.
The fact that some companies are still planning on moving ahead with the project is a good sign. That is because the British government has already admitted that they are counting on this project to help Britain meet its future energy needs. Without it, the UK could find itself back at square one.
Either way, the project cannot take anymore setbacks or companies pulling out of the project. This is going to be a huge undertaking, and the project has lost one of its major players already.