Ofgem has approved early investment and updated delivery dates for three proposed electricity transmission projects under its Accelerated Strategic Transmission Investment programme.
The regulator said Eastern Green Link 3 and Eastern Green Link 4 would each provide 2GW of subsea capacity between Scotland and England, while the GWNC project plans a new onshore 400Kv link between Grimsby and Walpole.
A cost benefit analysis 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, according to Ofgem.
The regulator added that amendments to project scope, forecast costs and later target delivery dates follow major design changes by transmission operators to reduce local environmental impact and enable additional renewable generation connections.
Ofgem has set new target dates of December 2033 for GWNC and August 2034 for EGL3 and EGL4, with incentives for early delivery and penalties for delays.
The projects are now expected to deliver greater consumer benefits than their original designs through reduced constraint costs, connection of more homegrown clean power and reduced community and environmental impact, including proposals for underground cables on parts of EGL3 and EGL4.
Ofgem has also approved early construction and preconstruction funding for EGL3 and EGL4 to support enabling works such as land purchases, surveys, design and procurement.
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.”
She added: “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.”
She stated: “Our processes help minimise wasted expenditure, if projects are altered, cancelled or refused permission, with any unspent money returned to consumers. The TOs must also demonstrate that their expenditure delivers clear benefits for consumers – otherwise those costs can’t be passed on to billpayers.”