Under plans currently being discussed by both the UK and Icelandic governments, renewable electricity could be provided by Iceland to the UK at a cheaper cost than offshore wind.
>The plans being discussed by the two governments concern a 1,000km undersea cable with a capacity of 1GW. The package is worth an estimated £4 billion with the inclusion of related generation and onshore transmission investments and could be operational by 2022. […]
At present, Iceland benefits from some of the lowest electricity prices in Europe given that much of their renewable energy comes from hydroelectricity and geothermal. […] the interconnector could provide power to the UK at around 60 to 70 percent of the price of offshore wind and that whichever way you look at it there are big potential benefits. However, in order to be successful, the Icelandic government must also convince their own citizens that there are also benefits for Iceland and there are concerns that exposure to a larger market could increase domestic energy prices.<