Energy regulator Ofgem has awarded a £2 billion funding package for the Eastern Greenlink 1 (EGL1) interconnector project.
The 196km subsea cable has been flagged by the National Energy System Operator (NESO) as an essential element in achieving the Government’s Clean Power 2030 ambition. The high-voltage interconnector will run between Torness, East Lothian, and Hawthorn Pit, County Durham.
Most of the 196km cable will be under the North Sea, with the remaining 20km of cables underground linking the cable to substations and converter stations in Scotland and England.
According to Ofgem, by harnessing the North Sea’s offshore wind generation, EGL1 will reduce reliance on international gas markets. In NESO’s Clean Power 2030 report, the project was cited to offer annual savings of £870 million because it will mean wind generators will not have to turn off so often at times of oversupply.
The £2 billion funding comes after Ofgem identified and cut £43 million from the project, which it says was possible without impacting delivery or quality. The £2 billion total was provisionally promised in March. The communities hosting EGL1 infrastructure will also benefit from a £7.9 million social value and community benefit fund.
Beatrice Filkin, Ofgem director of major projects, explained: “Our fast-track process provides developers with access to some initial upfront funding from the projected budget, so they can secure the supply chain commitments needed to secure the sought-after materials to deliver this project as soon as possible.
“However, streamlining our process does not mean we’ve handed a blank cheque to the developers. We’ve built in safeguards which mean we can step in where needed to ensure they deliver maximum efficiency and benefit to customers.”
EGL1 is the second of 26 energy projects, worth an estimated £20 billion, to successfully complete Ofgem’s new fast-track Accelerated Strategic Transmission Investment (ASTI) framework. This framework is designed to speed up grid connection times for new offshore clean energy projects by a full two years. This could significantly reduce connection delays and help prepare the British grid for an influx of renewable technologies.
In August, the first ASTI project was promised funding: a £3.4 billion package went to the Eastern Green Link 2 (EGL2) project, which will be capable of transmitting 2GW of electricity between Peterhead, Aberdeenshire, and a new converter station in North Yorkshire.
The £3.4 billion investment is set to be the largest single investment for British electricity transmission infrastructure to date.
