Ofgem has approved investment for three major projects connecting England and Sctokand that will provide more capacity to bring renewable energy from the UK’s offshore wind farms to users. Following an extensive redesign, the projects have earlier target dates for go-live.
Eastern Green Link 3 (EGL3) and Eastern Green Link 4 (EGL4) are two proposed subsea cables which would each provide 2GW of capacity. Both are now due in operation by August 2034. GWNC is an onshore 400kV electricity link between Grimsby and Walpole in Lincolnshire, to help transport the energy to consumers, due to be started up in December 2033. Before the redesign Ofgem said there was a risk that transmission owners would not have delivered the projects until the late 2030s.
A Cost Benefit Analysis (CBA) by grid operator NESO indicated the redesigned projects are expected to deliver a £3-6 billion benefit to consumers compared to the original network design, primarily due to the earlier achievable delivery dates and avoided network constraint costs. TOs will be for incentivised for delivering the projects earlier than these dates, but any late delivery will result in significant payments for penalties for each day the project is delivered late.
Ofgem approved early construction and preconstruction funding (ECF and PCF) for EGL3 and EGL4, so the projects can proceed with enabling works such as strategic land purchases, surveys, design work and procurement of components, equipment and materials.
Beatrice Filkin, Ofgem Director of Major Projects, said: “Today’s decision puts these projects in a prime position to compete in the global race for sought after components such as HVDC cables and work towards seeking planning approval.
“We’re neither handing TOs blank cheques nor greenlighting the projects themselves – that is rightly for the relevant planning authorities to decide. Through intelligent use of early investment and setting realistic but ambitious timescales, we are helping shield consumers from unnecessary costs.”