£3.4bn funding proposed for Eastern Green Link 2 as project fast tracked

EGL2 is an “electricity superhighway” connecting Peterhead in Scotland with Drax in England with 525kV, 2GW high voltage direct current (HVDC) subsea cable. Project promoters National Grid Energy Transmission (NGET) and SSEN say it’s the “UK’s single largest electricity transmission project ever” and has a target energisation date of 2029.

It will run for 500km with approximately 436km laid under the North Sea and the remaining 70km underground onshore.

Two converter stations, one at each end of the cable, would help feed the electricity from the cable into the grid and onward to customers. Bam-Hitachi Energy joint venture was recently appointed to build the converter stations for the project.

EGL2 is the second project to proceed under Ofgem’s Accelerated Strategic Transmission Investment (ASTI) framework.

Earlier in March 2024, the first ASTI project, National Grid’s Eastern Green Link 1 (EGL1) received a provisional £2bn funding package. EGL1 would be from Torness in East Lothian, Scotland to Hawthorn Pit in County Durham, England and is being developed by NGET and SP Transmission, part of SP Energy Networks.

It will be the first of 26 critical energy projects, worth an estimated £20bn, to be fast tracked.

The £3.4bn funding proposed by Ofgem for EGL2 is subject to a consultation published on 27 March, running until 26 April. The regulator will consider responses and publish a decision on its website.

The project received all planning consents from the relevant local authorities last October, but it must still secure planning permission in a process overseen by the Planning Inspectorate.

Ofgem director of major projects Rebecca Barnett said: “To ensure we meet future energy demand and achieve Government net zero targets we must speed up the expansion of the high voltage electricity network which connects consumers to homegrown energy.

“EGL2 is the second project to reach this stage under our new ASTI process which has been designed to boost Britain’s energy security by unlocking investment and speeding up the delivery of major power projects.”

“However just because we’ve streamlined the approval process doesn’t mean we’re handing developers blank cheques.

“The ASTI framework helps ensure consumers are protected from unnecessary costs and we make budget adjustments where we don’t see maximum efficiency and benefit for consumers.”

National Grid offshore delivery director Zac Richardson said: “The Eastern Green Links form part of The Great Grid Upgrade, our critical infrastructure investment plan which will upgrade and reinforce the electricity network to support the significant growth in renewable generation.

“We welcome Ofgem’s provisional decision as we believe the links will deliver the best value for money for consumers, while helping the UK decarbonise and achieve its net zero ambition.”

SSEN Transmission director of offshore delivery Sandy Mactaggart said: “We welcome Ofgem’s provisional decision to approve all necessary expenditure for the Eastern Green Link 2 project, a critical milestone in the final stages of the regulatory approvals process.

“With HVDC technology set to play a leading role in the clean energy transition, the delivery of EGL2 will build on the significant expertise we have established in this cutting-edge technology following the success of our Caithness-Moray HVDC link, and the Shetland HVDC link which remains on track for energisation this summer.

“We now look forward to working constructively with Ofgem and other stakeholders to finalise the investment required, in a timely manner, to build this underwater superhighway of electricity transmission, unlocking the electricity generation capacity required to power two million homes.

“We also look forward to working with NGET and our supply chain partners on this and future projects as we continue to deliver the critical national infrastructure required to meet our energy ambitions.”

Mott MacDonald was recently appointed to provide front end engineering design on both EGL3 and EGL4.

In December last year, National Grid also launched frameworks worth £58.67bn to meet its HVDC cable requirements, including a £12.77bn civils and major works framework.

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