Ofgem has begun a one-month consultation on its proposed “Beyond 2030” projects, to unlock the next phase of grid infrastructure investment.
The consultation contains Ofgem’s proposals for a regulatory approval and funding framework for the onshore electricity transmission projects recommended by the Electricity System Operator (ESO) as well as proposals to introduce a formalised project scope change governance process for onshore electricity transmission projects.
The launch of Ofgem’s consultation today confirms its agreement, as the industry regulator, on the need for the ESO’s proposed “Beyond 2030” plan for major transmission network investments across the north of Scotland, which are essential in order to help reach net zero.
The consultation also sets out the regulatory delivery pathways required to progress these projects.
“Beyond 2030” outlines the next tranche of projects required to connect all of the ScotWind offshore wind projects.
The plan will also enable the connection of other low-carbon technologies, further supporting the country’s transition to net zero and helping deliver energy security through the deployment of homegrown, low-carbon electricity generation.
In the north of Scotland, Ofgem supports the ESO’s plan, confirming the need for a number of projects to proceed for delivery by the mid-2030s.
Combined, this represents a potential estimated investment of over £5bn for SSEN Transmission and includes the Shetland Hub, which is a second High Voltage Direct Current (HVDC) subsea link from Shetland, connecting to Coachford (Blackhillock 2) substation and DSUP, which is a new 400kV double circuit between Dounreay, Thurso and Banniskirk (Spittal 2), with new 400kV substations at Dounreay and Thurso.
Today’s consultation also identifies SSEN Transmission as the delivery body for the Shetland Hub, DSUP and PKUP projects while the delivery confirmation of the remaining BKUP project is expected in the coming weeks.
These critical network investments will be subject to extensive public consultation to help inform the development of these new and upgraded network infrastructure requirements.
For the other projects in the north of Scotland included in the ESO’s “Beyond 2030” report, further assessment is necessary to determine the appropriate level of investment required to enable the full potential of ScotWind to be realised, including the most appropriate solution for the required north-south transfer of power, stated SSEN Transmission.
SSEN Transmission Managing Director Rob McDonald said: “Today’s consultation launch reaffirms the need for these projects and underlines the importance of investment in the electricity transmission network to reach national energy targets, while also offering further clarity on our post-2030 growth plans.
“We now look forward to a timely decision from Ofgem and will continue to work constructively with the regulator and wider stakeholders to unlock the investment required for these vital projects to help us reach net zero.”