OFGEM has introduced it’s consulting on a proposed funding package deal of £3.4 billion for a subsea and underground 500km electrical energy superhighway between Scotland and Yorkshire which may energy as much as 2 million properties.
Japanese Inexperienced Hyperlink 2 (EGL2) is a 2GW excessive voltage electrical energy ‘superhighway’ cable hyperlink between Peterhead in Aberdeenshire and Drax in North Yorkshire. A lot of the cable (round 436km) can be underneath 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 venture to date to proceed underneath Ofgem’s new quick monitor Accelerated Strategic Transmission Funding (ASTI) framework. Earlier this month the primary ASTI venture, Japanese Inexperienced Hyperlink 1 (EGL1) one other subsea hyperlink between England and Scotland obtained a provisional £2billion funding package deal.
OFGEM mentioned ASTI is designed to hurry up the supply of strategic vitality initiatives, enabling extra electrical energy generated by offshore wind to be delivered to British shoppers. The brand new framework accelerates the venture funding course of by as much as two years, mentioned the vitality regulator. EGL2 is certainly one of 26 initiatives recognized as important to assembly the Authorities’s goal of 50GW of offshore wind capability by 2030 and included in Ofgem’s ASTI cohort.
The venture is financed by the builders with prices later recouped by way of payments. To make sure client prices are minimised Ofgem has scrutinised the prices proposed by the builders underneath the ASTI course of. It has recognized £67 million that may very well be lower from oblique prices with out impacting venture supply or high quality.
Supply of initiatives reminiscent of EGL2 is not going to solely present thousands and thousands of shoppers with entry to homegrown wind vitality, by boosting grid capability it should additional profit shoppers by reducing compensation paid to turbines at present requested to show off manufacturing, throughout instances of excessive wind, because of lack of grid capability.
A spokesperson for the Power Networks Affiliation (ENA), mentioned: “That is nice information for the grid. In addition to utilizing our current community to its full potential, we additionally have to 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 financial system.”
Rebecca Barnett, Ofgem Director of Main Initiatives, mentioned: “To make sure we meet future vitality demand and obtain Authorities internet zero targets we should pace up the growth of the excessive voltage electrical energy community which connects shoppers to homegrown vitality.”
“Japanese Hyperlink 2 is the second venture to succeed in this stage underneath our new Accelerated Strategic Transmission (ASTI) course of which has been designed to spice up Britain’s vitality safety by unlocking funding and rushing up the supply of main energy initiatives.”
She added: “Nonetheless 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 finances changes the place we don’t see most effectivity and profit for shoppers.”
The proposed finances is now topic to a session revealed on 27 March.
Suggestions on the proposed finances may be despatched to riioelectricitytransmission@ofgem.gov.uk.
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