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Ofgem intends to release early construction funding for a £289.4 million reinforcement project in London proposed by National Grid Electricity Transmission (NGET).
The North London Reinforcement Project consists of uprating 19.5km of overhead lines between Hackney, Tottenham and Waltham Cross substation from the existing 275kV to 400kV and reconductoring of 29km between Pelham-Rye house and Waltham Cross.
NGET had applied for 20% of the project’s total costs as part of the ASTI reopener mechanism, however Ofgem’s minded-to position is to release 17% of the costs.
The early construction funding will be used to carry out early procurement activities as well as diversion works, building demolition and vegetation clearance (see full summary of activities below).
In NGET’s application only 17% of the total forecast project cost was attributed to specific activities. NGET said that it required the additional 3% of possible funding “to avoid the need for a further early construction funding submission if there is an additional opportunity to carry out other early construction activities.”
However, the regulator has dismissed NGET’s request for the additional 3%, stating that it would need “to better understand what explicit activities can be attributed to the additional funding”.
Ofgem’s minded-to response, which is out for consultation, adds: “We agree that each of the early enabling work activities are required to ensure timely progression of the projects’ main works, and thus reduce overall schedule and cost risk on the project […]
“We also recognise that supply chain procurement of transmission infrastructure is constrained with increased procurement costs and elongated lead times for critical assets. Funding activities that ensure contractor commitment and delivery of long-lead items helps preserve the programme and de-risk the project.”
It concludes that releasing the early funding “will enable early construction activities that are required to accelerate the project, thereby helping to safeguard the overall programme and delivery of the project”.
Summary of activities to be funded by early construction funding:
| Project | Summary |
| Early enabling works | Diversion work of UK Power Networks (UKPN) assets in Pelham, Brimsdown and Tottenham substations.
Temporary Diversion of Vodaphone fibre to allow the project to reconductor/uprate and install Optical Ground Wire (OPGW). Vegetation needs to be cleared at Waltham Cross, Pelham and Brimsdown substations in preparation for the Main Works Contractor (MWC) to start work. Demolishing a building to the north of the substation to make space for the new cable sealing end compound at Tottenham substation. Post-Development Consent Order (DCO) detailed design for the OHL and Substations and non SF6 Gas Insulated Substation (GIS) equipment. Discharge of DCO Requirements |
| Early procurement commitments | Procurement of four Super Grid Transformers (SGTs) for installation at Hackney and Brimsdown substations. The first SGTs are needed in April 2026for installation during the 2026 outage.
Procurement of two Quad Boosters (QBs) for installation at Pelham substation by the end of 2026 for installation in the 2027 outage. Procurement of non SF6-GIS equipment for Waltham Cross, Hackney, and Pelham substations for installation in the 2026 and 2027 outages. Procurement of overhead line conductor and fittings which are needed for installation in the 2026 outage window. |
The project is needed to provide reinforcement of the route between Pelham and Hackney substations to accommodate increases in future renewable generation.
NGET said that without reinforcement, the current 275kV circuits feeding London “would be overloaded by high levels of offshore wind from East Anglia”. “This would be worsened where high wind generation coincides with high levels of interconnector exports from locations south of London,” NGET’s submission adds.
The project was previously assessed via the Large Onshore Transmission Investments (LOTI) re-opener, and its final needs case was approved on 4 July 2023.
Since then the project has been included within the Accelerated Strategic Transmission Investment (ASTI) programme, which has identified 26 strategic transmission projects with an estimated cost of £20 billion which will be taken forward under a streamlined regulatory approval and funding process.
EGL1 – a 2GW high-voltage direct cable subsea cable connecting East Lothian and County Durham – became the first project to be approved under the ASTI scheme last month.
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