AQUIND

Interconnectors have consistently proven robust, reliable, and essential for strengthening a country’s energy mix. I am certain that such a project could redefine energy transmission for the UK and Europe,” states Bennett Iorio, Senior Advisor at AQUIND.

So why is it still not a reality?

This question is becoming increasingly compelling, especially in light of a recent poll conducted by Savanta, a member of the British Polling Council. The poll shows that most Portsmouth residents favour an innovative energy project—creating an electric power transmission link between Portsmouth and Normandy.

AQUIND, the private energy company spearheading this ambitious initiative, is determined to construct a 2-gigawatt high-voltage direct current (HVDC) interconnector across the English Channel, essentially forging a powerful link between the British and French power grids. Its mission is guided by four core pillars: driving down energy costs, enhancing grid resilience, bolstering the integration of renewable energy sources, and providing substantial financial benefits to the national economy.

The Necessity for Change

The Savanta poll uncovers other compelling statistics. About 94 per cent of Portsmouth residents acknowledge that energy bills are at an all-time high, and 82 per cent express strong dissatisfaction with current energy costs. Many residents are concerned about rising carbon emissions and believe the government is not doing enough to address these issues.

In response to these concerns, the AQUIND Interconnector is poised to play a crucial role in increasing the share of green, renewable energy in the UK’s energy mix. The project will allow the UK to import nuclear power from France, where a significant portion of electricity is generated from nuclear sources, classified as green power due to its negligible carbon emissions. This strategic initiative perfectly aligns with the UK’s net-zero goals and could play a crucial role in helping the nation reach carbon neutrality by 2050. For France, the interconnector offers enhanced energy security, enabling the import of electricity from the UK during periods of high demand or low production.

“A great way to visualise the enormous contribution AQUIND would make to the UK’s carbon emissions targets is that for every year of operation, we would see the equivalent emissions reduction of 650,000 petrol cars taken off the roads. This project is vital to the UK’s green energy transition,” Ben Iorio explains.

“It is a 2-gigawatt interconnector cable with two circuits of 1 gigawatt each, allowing electricity to flow in both directions, significantly benefiting both nations,” says Richard Glasspool, director of AQUIND.

Among the numerous advantages, the economic impact is particularly significant for both nations. By facilitating the flow of electricity between the two countries, the AQUIND Interconnector is set to create a more competitive energy market, potentially lowering consumer energy prices. In addition, the project is expected to boost the national treasury through increased tax revenues from energy trading activities.

Addressing Challenges and Building Support

Despite its alignment with UK energy policy and potential benefits, the project has faced several challenges, including delays in obtaining planning permissions and regulatory approvals. The interconnector requires a Development Consent Order (DCO), a central government process involving a detailed Planning Inspectorate assessment.

Although AQUIND has received overwhelmingly positive recommendations, the final approval has been delayed, leaving the project in limbo as the company waits for the final decision of the Secretary of State on how to proceed.

Also recognising the importance of public perception and community backing, AQUIND has leveraged the majority backing to communicate the project’s benefits. It emphasises the interconnector’s potential to reduce energy prices, enhance energy security, and contribute to sustainability efforts. By highlighting public support, AQUIND aims to counter the “not in my backyard” sentiment expressed by a minority of residents opposing the project.

“Energy security is precisely what AQUIND delivers – to the UK and to Europe. By increasing transmission capacity with our nearest neighbours and allies in Europe, we can ensure a more flexible and resilient grid, safeguarding our energy future, as well as reducing energy costs and carbon emissions – and encouraging investment” Iorio explains.

AQUIND strictly adheres to all regulatory requirements and makes significant efforts to secure the necessary planning permissions. It has maintained open communication with regulatory bodies and ensured that all environmental and technical assessments are thoroughly completed to facilitate a smoother approval process.

The company is actively pursuing compliance with French regulations, attempting to secure a connection agreement with Réseau de Transport d’Électricité (RTE), the French counterpart to the UK’s National Grid. It also engages with other essential authorities, like the Commission de régulation de l’énergie (CRE), which oversees electricity markets in France to cement support from both countries.

Much like in Portsmouth, AQUIND works closely with local authorities in Normandy to ensure the local population is fully convinced of the project’s benefits. It has already made significant progress in obtaining the necessary approvals and is on track to establish Portsmouth and Normandy as key power transmission hubs in Europe through the interconnector.

Furthermore, despite delays, AQUIND’s financial footing remains strong. With robust backing from leading investors and an operational model designed to ensure long-term revenue through energy trading, the project offers one of the most secure and lucrative investment opportunities in the UK’s energy landscape. The project’s financial viability is unquestionable, ensuring a high-value return for stakeholders.

Strategic Funding Initiatives

Acknowledging the substantial financial requirements for the construction phase, AQUIND is actively seeking new equity and debt investors. The company has enlisted London Bridge Capital as an investment advisor to identify potential partners. By targeting multinational financial institutions, infrastructure funds, and project finance banks, AQUIND aims to raise the estimated £2 billion needed for construction. With £70 million already invested, the company is currently in discussions with several blue-chip financial institutions. It is optimistic about the substantial investment appetite for interconnectors, which offer a unique opportunity for enduring returns.

To enhance credibility with investors, AQUIND is committed to transparency and structuring ownership and funding in alignment with regulatory expectations. The project is currently 100 per cent privately financed, ensuring clear accountability and posing no cost to UK taxpayers. It also follows a hybrid regulatory compliance model involving regulated and merchant-based components in the UK and France.

“There is significant appetite, both foreign and domestic, for major energy infrastructure investment. The AQUIND project serves as a litmus test for how serious the UK government is about attracting investment in critical sectors. In this sense, AQUIND Interconnector isn’t just an energy project; it’s a defining opportunity for investors to be part of the UK’s energy future and for the UK Government to spur investment in the country”, Iorio said.

The project has already secured over £400 million more in committed investments than the total construction cost, demonstrating immense confidence in AQUIND’s long-term profitability and operational security.

With procurement and supply chains fully locked in, and all major construction agreements secured, the project stands in a highly favourable financial position. Investors are encouraged to seize this moment, as there is a lucrative window for stake acquisition and share buyouts. Given AQUIND’s secure profit margins and its position as the largest new energy infrastructure project set to come online before 2030 – with potential completion as early as 2027 – early investors can expect substantial returns.

AQUIND’s profit potential has already been demonstrated through its ability to raise over £400 million above its construction costs, showing a high level of interest and confidence from the market. With demand for interconnector capacity only increasing, AQUIND offers investors a unique chance to get involved in a transformative project with enduring financial benefits. This will be the only UK energy infrastructure project able to help meet generation and transmission targets ahead of 2030.

Contributing to the 18-gigawatt Target

With the UK government targeting 18 gigawatts of interconnection capacity between the UK and Europe by 2030, the AQUIND Interconnector emerges as a cornerstone of this ambitious vision. This groundbreaking project will propel the UK toward achieving its interconnection goals by forging a seamless connection between the British and French power grids, dramatically enhancing grid flexibility and energy security. The bidirectional nature of the interconnector empowers both nations to dynamically balance their energy needs, paving the way for a more resilient and sustainable energy future.

The AQUIND Interconnector represents a game-changing investment opportunity at the nexus of sustainability and innovation. Positioned to deliver substantial returns while playing a critical role in the UK’s energy transition, this project is more than infrastructure development—it promises to be a defining moment for the future of clean, secure power in Europe.

“The fundamental story is the immense investment interest from the UK, Europe, and North America. Procurement is ready, and we are just waiting for planning permission to hit the go button,” Glasspool concludes.