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A National Grid-backed project to build the world’s longest sub-sea interconnector between Iceland and the UK faces “a lot of difficult problems”, a government minister has said.

National Grid, the Icelandic state-owned generator Landsvirkjun, and Landsnet, the country’s transmission system operator, are collaborating on plans for the Ice Link interconnector, which would have capacity of up to 1.2GW.

The 1,500 km cable, which could be the world’s longest sub-sea power interconnector, offers Iceland an opportunity to export power generated by its abundant hydro and geo-thermal resources.

The UK and Icelandic governments agreed to set up a taskforce to look at the benefits of the proposed interconnector in 2015 but progress on the project has slowed down since the UK’s decision to exit the EU in the following year.

During a debate yesterday in the House of Lords, government whip Baroness Bloomfield was pressed on progress on the interconnector.

She said: “It sounds like an appealing project until you get into the weeds of it.

“There are a number of barriers under the water, thrown up by the seabed survey, which, while not showstoppers, would make it extremely difficult to do.”

She said the main “stumbling block” for the project is that the bulk of Iceland’s geothermal and hydro-power is generated in the country’s south-west corner but the best place to build an interconnector is the north-east.

The minister said the high voltage cables cannot be buried underground because much of the interior’s terrain is bedrock, which would mean unsightly pylons straddling the island.

“The effect on the environment of pylons or overland HVDC cables would have been enormous. I think; the entire environmental lobby would be very exercised by the prospect.

“Given that tourism is such a huge part of Iceland’s economy—and has been until the pandemic—I wish the project well, but there are a lot of difficult problems to overcome.”

The baroness was speaking during a debate in the Lords to approve new UK regulations for preparing for electricity crises.

The Electricity (Risk-Preparedness) (Amendment etc.) (EU Exit) Regulations 2020 replace the EU framework for preventing, preparing for and managing electricity crises.

The regulations, which requires member states to identify all possible national and regional electricity crisis scenarios and prepare risk-preparedness plans, came into force last year.