Eastern Green Link 1 (EGL1) has been awarded a £2 billion funding package to build the proposed new 196km subsea and underground cable.
Flagged by the National Energy System Operator (NESO) as an essential element in achieving the government’s Clean Power 2030 ambition, EGL1 is a high voltage electricity superhighway able to transport 2GW of wind-generated electricity 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.
NESO’s recent Clean Power 2030 Report has also shown that the project will deliver annual savings of over £870m by reducing the need to compensate British wind generators who are currently asked to turn off production, during times of high wind, due to lack of grid capacity.
This in turn will help drive down consumer bills.
Ofgem director of major projects Beatrice Filkin 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.”
She added: “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 projects, worth an estimated £20b to successfully complete Ofgem’s new fast track Accelerated Strategic Transmission Investment (ASTI) framework.
ASTI speeds up the funding process for projects by up to two years, allowing electricity generated by offshore wind to be delivered to British customers sooner.
Ofgem previously approved the EGL1 funding package back in March this year.
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