.png)
A £2 billion funding package has been secured to build a state-of-the-art electric superhighway connecting Scotland and England. The project aims to bolster energy security, reduce household bills, and drive progress toward the UK Government’s green energy targets.
The ambitious project includes a 196km subsea and underground cable called Eastern Green Link 1 (EGL1), designed to transport homegrown wind energy from Torness in East Lothian to Hawthorn Pit in County Durham. Recognized by the National Energy System Operator (NESO) as crucial to achieving the Government’s Clean Power 2030 goals, the cable will primarily run beneath the North Sea, with a 20km stretch underground to connect it to crucial substations in Scotland and England.
This superhighway comes at a pivotal time, as the UK seeks to reduce its dependence on the volatile international gas market, which has been severely impacted by events like Russia's invasion of Ukraine and the COVID-19 pandemic. By facilitating renewable energy transmission, the project promises to enhance energy stability while accelerating the transition to cleaner power.
Beyond its environmental benefits, EGL1 is projected to deliver annual savings exceeding £870 million by reducing the need to compensate wind energy producers who are currently forced to curtail production during periods of high wind due to insufficient grid capacity. These savings are expected to help lower energy costs for households nationwide.
Further enhancing its value, Ofgem has identified over £43 million in cost savings without compromising the project’s delivery or quality. In addition, a new social value and community benefit fund worth £7.9 million has been established to support communities hosting the infrastructure in Scotland and North-East England.
As the UK inches closer to its net-zero goals, this electric superhighway stands as a transformative step toward cleaner, more resilient energy systems, promising both environmental and economic benefits for years to come.
Beatrice Filkin, Ofgem Director of Major Projects, said: “Today's announcement takes us another step closer to achieving Great Britain’s 2030 Clean Power ambitions. It means customers can reap the benefits of abundant homegrown wind faster, while also being increasingly shielded from volatile imported gas prices.
“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 ‘critical energy project’ which are worth an estimated £20bn to successful complete Ofgem’s new fast track Accelerated Strategic Transmission Investment (ASTI) framework.
Earlier this year, in August, Ofgem also approved a £3.4bn 500km electric superhighway from Aberdeenshire to North Yorkshire.
Comments