Ofgem approves ‘largest-ever’ transmission investment for Eastern Green Link 2

British energy regulator Ofgem has provided provisional approval for funding of Eastern Green Link 2 (EGL2) at approximately £4.3 billion ($5.4 billion). Project partner SSEN Transmission is calling it the single largest-ever investment in electricity transmission infrastructure in Great Britain.

Ofgem approved the expenditure needed for the HVDC subsea superhighway, a 525kV 2GW link, approximately 436km in length with new converter stations at either end to connect to existing transmission network infrastructure.

EGL2, a joint venture project between SSEN Transmission and National Grid Electricity Transmission, will carry enough electricity to power nearly two million homes and will run from Peterhead in northeast Scotland to Drax on the east coast of England.

Said Sandy Mactaggart, director of offshore delivery for SSEN Transmission: “We welcome Ofgem’s provisional decision to approve all necessary expenditure for the Eastern Green Link 2 project, a critical milestone in the final stages of the regulatory approvals process.

“We now look forward to working constructively with Ofgem and other stakeholders to finalise the investment required, in a timely manner, to build this underwater superhighway of electricity transmission, unlocking the electricity generation capacity required to power two million homes.”

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Announced in July 2023, the EGL2 cable system forms part of both National Grid’s Great Grid Upgrade, a multibillion pound investment in new electricity transmission projects across England and Wales, as well as SSEN’s ‘Pathway to 2030’ investments, which will see around £20 billion ($25.2 billion) invested in the north of Scotland’s electricity transmission network over the next decade.

The Link will help unlock Scotland’s renewable potential and reduce the costs associated with transmission system constraints, which routinely see generators paid to not produce power, allowing existing electricity generation to be transported to end users.

Said Zac Richardson, offshore delivery director for National Grid: “The Eastern Green Links form part of The Great Grid Upgrade, our critical infrastructure investment plan which will upgrade and reinforce the electricity network to support the significant growth in renewable generation.

“We welcome Ofgem’s provisional decision as we believe the links will deliver the best value for money for consumers, while helping the UK decarbonise and achieve its net zero ambition.”

Added energy minister Graham Stuart: “Improving our infrastructure is crucial for adding more, cheaper renewable energy to the grid and transporting electricity to where it is needed. That’s why we announced reforms to help unlock investment and halve the time it takes to build new network infrastructure.”

“This project is just the start and will unleash Scotland’s renewable potential, strengthen the UK’s energy security and support hundreds of jobs during construction.”

Lessons learned in the pioneering project will go on to support future HVDC deployment, which will be crucial to delivering the transformational increase in grid capacity required to deliver a clean energy power system.

Ofgem’s decision builds on the recent announcement that the EGL2 joint venture has signed contracts with BAM Nuttal for all civil works, Hitachi Energy for the HVDC convertor station and Prysmian for the HVDC subsea and land cable.

With all major supply chain partners in place, the project remains on track for energisation in 2029.