OFGEM has introduced it’s consulting on a proposed funding bundle of £3.4 billion for a subsea and underground 500km electrical energy superhighway between Scotland and Yorkshire which might energy as much as 2 million properties.
Jap Inexperienced Hyperlink 2 (EGL2) is a 2GW excessive voltage electrical energy ‘superhighway’ cable hyperlink between Peterhead in Aberdeenshire and Drax in North Yorkshire. Many of the cable (round 436km) shall be beneath the North Sea with the remaining 70km buried underground onshore. Two converter stations, one at every finish of the cable, are deliberate to assist feed the electrical energy transported by the cable into the grid and from there onto shoppers.
Designed to assist harness the potential of Britain’s offshore wind energy, EGL2 is the second undertaking to this point to proceed beneath Ofgem’s new quick monitor Accelerated Strategic Transmission Funding (ASTI) framework. Earlier this month the primary ASTI undertaking, Jap Inexperienced Hyperlink 1 (EGL1) one other subsea hyperlink between England and Scotland obtained a provisional £2billion funding bundle.
OFGEM stated ASTI is designed to hurry up the supply of strategic power initiatives, enabling extra electrical energy generated by offshore wind to be delivered to British shoppers. The new framework accelerates the undertaking funding course of by as much as two years, stated the power regulator. EGL2 is considered one of 26 initiatives recognized as vital to assembly the Authorities’s goal of 50GW of offshore wind capability by 2030 and included in Ofgem’s ASTI cohort.
The undertaking is financed by the builders with prices later recouped by way of payments. To make sure shopper prices are minimised Ofgem has scrutinised the prices proposed by the builders beneath the ASTI course of. It has recognized £67 million that might be reduce from oblique prices with out impacting undertaking supply or high quality.
Supply of initiatives corresponding to EGL2 won’t solely present tens of millions of shoppers with entry to homegrown wind power, by boosting grid capability it is going to additional profit shoppers by slicing compensation paid to turbines at the moment requested to show off manufacturing, throughout instances of excessive wind, as a consequence of lack of grid capability.
A spokesperson for the Vitality Networks Affiliation (ENA), stated: “That is nice information for the grid. In addition to utilizing our present community to its full potential, we additionally must construct new infrastructure like this to allow decarbonisation. In addition to delivering advantages to prospects, initiatives like this help jobs, our provide chain and our economic system.”
Rebecca Barnett, Ofgem Director of Main Initiatives, stated: “To make sure we meet future power demand and obtain Authorities internet zero targets we should velocity up the growth of the excessive voltage electrical energy community which connects shoppers to homegrown power.”
“Jap Hyperlink 2 is the second undertaking to achieve this stage beneath our new Accelerated Strategic Transmission (ASTI) course of which has been designed to spice up Britain’s power safety by unlocking funding and rushing up the supply of main energy initiatives.”
She added: “Nevertheless simply because we’ve streamlined the approval course of doesn’t imply we’re handing builders clean cheques. The ASTI framework helps guarantee shoppers are shielded from pointless prices and we make funds changes the place we don’t see most effectivity and profit for shoppers.”
The proposed funds is now topic to a session printed on 27 March.
Suggestions on the proposed funds could be despatched to riioelectricitytransmission@ofgem.gov.uk.
