UK energy regulator Ofgem has given the go ahead for Eastern Green Link 2 (EGL2), a 2-GW subsea connection between the Scottish and English transmission networks.
The 500-km (311-mile) link will run between Peterhead in northeastern Scotland and Drax in North Yorkshire, England. It is being developed by a joint venture between National Grid and SSEN Transmission.
Ofgem approved a GBP 3.4 billion (USD 4.3bn/EUR 4bn) funding package to construct the connection. The regulator said EGL2 is the first of 26 projects to complete a fast-track process to secure funding through its new Accelerated Strategic Transmission Investment (ASTI) framework. The framework seeks to speed up the onshore transmission regulatory funding approval process to help connect up to 50 GW of offshore by 2030.
Ofgem CEO Jonathan Brearley said ASTI accelerates approval times for projects such as EGL2 by up to two years. “However, 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,” Brearley added.
Construction is set to start later this year, with the link expected to be completed by 2029. Prysmian Group will supply around 1,000 km of cable, while Hitachi Energy and BAM will provide converter stations at both ends of the subsea cable.
Welcoming Ofgem’s decision, Industry Minister Sarah Jones said: "To achieve our mission for clean power by 2030, we need a grid capable of transporting homegrown energy from renewable sources to power up our homes and businesses.”
The GBP-3.4-billion expected nominal investment figure calculated by Ofgem is based on 2018/19 prices, while adjusted for inflation this amounts to around GBP 4.3 billion, the project’s developers note.
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