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Ofgem has given the final go-ahead a £3.4 billion electricity “superhighway” connecting the power grids in Scotland and England.
The Eastern High Voltage Direct Current (HVDC) scheme comprises two subsea links running along the East coast of the UK that will each have capacity of 2GW.
The connections will be used to transmit renewable electricity generated in Scotland down to demand centres in England, alleviating current and future network constraints along the border between the two nations.
The first, running from Torness in Scotland to Hawthorn Pit in England, is being jointly developed by the transmission arms of National Grid and SP Energy Networks. It is expected to cost just under £1.3 billion to build and begin operating from 2027.
The second, running from Peterhead in Scotland to Drax in England, is being jointly developed by the transmission arms of National Grid and Scottish and Southern Electricity Networks (SSEN). It is expected to cost just over £2.1 billion to build and begin operating from 2029.
SSEN said construction of the latter is scheduled to commence in early 2025.
The projects will be funded through the Large Onshore Transmission Investment (LOTI) mechanism of the RIIO T2 price controls.
The developers submitted an initial needs case to Ofgem in December 2020, which was approved by the regulator in November 2021. It has now confirmed its position to give the links the green light following a final needs case assessment.
They will next undergo a project assessment to evaluate the proposed costs and delivery plans, with a view to setting allowances and targets for the projects under the LOTI mechanism.
Both projects were listed as key reinforcements in the Holistic Network Design recently published by National Grid Electricity System Operator, which identified the need for £54 billion of transmission network investment to meet the government’s target of deploying 50GW of offshore wind by 2030.
Commenting on Ofgem’s decision, Rob McDonald, managing director of SSEN Transmission, said: “We welcome Ofgem’s final approval for the first of two subsea links planned to connect Peterhead in Scotland to demand centres in England.
“Following fast on the heels of last week’s ‘Pathway to 2030’ announcement, these links are critical to our net zero ambitions, delivering UK and Scottish government renewable targets and reducing our dependence on volatile wholesale gas markets by supporting indigenous low carbon electricity generation.
“We now look forward to delivering this critical national infrastructure, which will support hundreds of highly skilled jobs throughout the construction phase and thousands more throughout the economy.”
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