NEWS / Infrastructure Intelligence / UK’s largest electricity transmission project gets Ofgem green light

Offshore wind - image: Nicholas Doherty on Unsplash

14 AUG 2024

UK’S LARGEST ELECTRICITY TRANSMISSION PROJECT GETS OFGEM GREEN LIGHT

Ofgem has given the green light to a £3.4bn funding package to build a proposed new subsea ‘superhighway’ - with an underground 436km North Sea cable taking clean power to two million homes across Britain.

Eastern Green Link 2 (EGL2) is the first of 26 projects to complete Ofgem’s new fast-track process to speed up sign-offs by up to two years under the Accelerated Strategic Transmission Investment programme (ASTI).

EGL2 will deliver a 2GW high voltage electricity ‘superhighway’ cable link between Peterhead in Aberdeenshire and a new converter station at Drax in North Yorkshire, which will help harness the potential of British offshore wind power

Most of the cable - around 436km - will be under the North Sea from Sandshore Bay to Wilsthorpe, Yorkshire with the remaining 70km buried underground onshore to converter stations at either end of the cable to plug into national the grid and from there onto consumers from Yorkshire

The project is a joint venture between National Grid Electricity Transmission (NGET) and SSEN Transmission and is expected to be the largest single investment in electricity transmission infrastructure in Britain to date

Full construction is expected to begin later this year and to be operational in 2029

ASTI reduces the time that clean offshore power is approved and allows more renewable energy to be brought onto the grid.

It is a step towards the government’s target of the national power grid being clean by 2030 to reduce Britain’s reliance on volatile international gas markets with cleaner, cheaper, more secure wind energy

Jonathan Brearley, Ofgem CEO, said: “Ofgem is fully committed to supporting the government to meet its aims of getting clean power by 2030.

“Today's announcement is a further step in putting the regulatory systems and processes in place to speed up network regulation to achieve its aim.

“ASTI accelerates approval times for projects such as EGL2 by up to two years. Streamlining the process does not mean blank cheques for developers as we are able to step in and make financial adjustments to maximise efficiency and consumer benefit.”

Ricky Saez, EGL2 project director, said: “Ofgem’s decision to issue its final project assessment decision is a major milestone, and testament to the hard work of our project teams within SSEN Transmission and NGET in getting us to the stage where construction can begin later this year."

He added: “Not only will EGL2 will play a major role in bolstering energy security and contributing to net zero targets, it will also provide a lasting legacy in local communities where our teams are already supporting local environmental initiatives that enhance community wellbeing.

“This is a commitment that will continue throughout the lifetime of the project and beyond, as we aim to be a positive force in the communities we operate.”

Ofgem gave provisional approval to a sister scheme in March, the proposed 196km Eastern Green Link 1 high voltage subsea cable which will transport another 2GW of homegrown wind generated electricity between Torness, East Lothian and Hawthorn Pit, County Durham.

This is developed by NGET and SP Transmission, part of SP Energy Networks.

Ofgem has also published updates on a number of other ASTI projects including Yorkshire GREEN, giving it a provisional green light to £294.8m of funding for the project.

It involves a proposed upgrade to the local electricity network to help transport energy generated by Scottish and North Sea windfarms to consumers. Plans include building new substations, underground cables, over seven kilometres of overhead lines and cable sealing end compounds (where underground cables meet overhead lines).

Ofgem’s proposed funding allowance is now subject to consultation with the project currently expected to be operational by 2027.

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