Scotland-Yorkshire power link completes fast-track funding process

13th Aug 2024 10:05

(Sharecast News) - The Eastern Green Link 2 (EGL2), a major electricity transmission project connecting Scotland and Yorkshire, has become the first to complete Ofgem's fast-tracked funding process under the Accelerated Strategic Transmission Investment (ASTI) framework.

EGL2 involves constructing a 500-kilometre subsea and underground cable capable of powering up to two million homes, with a total investment of £3.4bn.

The regulator described the EGL2 project as a critical component of the UK's efforts to enhance its energy infrastructure and increase the grid's capacity for renewable energy.

The cable, which would transport 2GW of electricity, would run primarily under the North Sea between Peterhead in Aberdeenshire and Drax in North Yorkshire.

Ofgem said the ASTI framework expedited the funding process by up to two years, facilitating the faster delivery of offshore wind energy to consumers.

In addition to EGL2, Ofgem announced a proposed £294.8m funding allowance for the Yorkshire Green Energy Enablement project, which was designed to upgrade local electricity networks to handle increased energy generated by Scottish and North Sea wind farms.

That project was expected to be operational by 2027.

Ofgem also approved early construction funding for the North London Reinforcement Project and several other projects under Scottish Hydro Electricity Transmission (SHET), aimed at boosting electricity transmission capacity.

"Ofgem is fully committed to supporting the government to meet its aims of getting clean power by 2030," said the regulator's chief executive officer, Jonathan Brearley.

"Today's announcement is a further step in putting the regulatory systems and processes in place to speed up network regulation to achieve its aim."

Brearley said Accelerated Strategic Transmission Investment (ASTI) accelerates approval times for projects such as Eastern Green Link 2 (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."

Reporting by Josh White for Sharecast.com.