The project entails laying a 500km cable between Scotland and England to power as many as two million homes. — Reuters
LONDON: British energy regulator Ofgem has given the green light to a £3.4bil funding package to build a proposed electricity “superhighway” under the North Sea.
The project entails laying a 500km cable between Scotland and England to power as many as two million homes, the watchdog said Tuesday.
About two years have been shaved off the approval time for the venture, the first of 26 in Ofgem’s new fast-track funding process for offshore wind, it said.
Grid expansion is key to Britain’s energy transition, allowing wind power from Scotland to be transported to demand centres in England.
National Grid Plc’s Electricity System Operator estimates that £112bil needs to be invested in the network to ensure the country is on track for net-zero.
Construction of the so-called Eastern Green Link 2 venture is expected to begin later this year, with the project operational in 2029.
It’s being developed by Scottish & Southern Electricity Networks Transmission and National Grid Electricity Transmission – both divisions of listed companies.
National Grid in May announced a £6.8bil capital raising to help fund its massive investment programme – including developments such as the undersea cable. The spending plan includes £23bil for electricity transmission, a 250% increase on the previous five-year period.
A similar cable to Eastern Green Link 2, the shorter Eastern Green Link 1, is also in the development phase and due to be operational in 2029. — Bloomberg
