We welcome Ofgem’s provisional approval of the first of two subsea links planned connecting Peterhead in the north east of Scotland to demand centres in England.
The High Voltage Direct Current (HVDC) subsea link - with a capacity of 2GW, enough to power over 2m homes - has a total estimated investment of around £2.1bn and will provide essential reinforcements to the GB energy system.
The subsea superhighway of electricity transmission will alleviate existing and future constraints on the electricity transmission network, supporting the growth of new renewable electricity generation and delivering a pathway to net zero emissions. This investment is being taken forward as part of the SSE Group’s Net Zero Acceleration Programme, which will see £12.5bn invested in the five years to 2026, or £7m every day.
By enabling the connection of indigenous, low carbon electricity generation, the link will also play a critical role in supporting the UK’s future security of supply, reducing dependence and price exposure to volatile global wholesale gas markets.
Work to progress the initial 2GW link, from Peterhead in the north east of Scotland to Drax in Yorkshire in England, will be taken forward as a joint venture between SSEN Transmission and National Grid Electricity Transmission (NGET). Early enabling works are expected to commence in summer 2024, with main construction works due to begin in early 2025, with a targeted energisation date of 2029.
This major investment will also support hundreds of green jobs throughout construction and operation and many thousands more throughout the supply chain and wider economy, playing a key role in the green recovery from the coronavirus pandemic.
Rob McDonald, Managing Director of SSEN Transmission, said:
“We welcome Ofgem’s timely decision to provisionally approve the first of two subsea links planned to connect Peterhead in Scotland to demand centres in England. These links are critical to our net zero ambitions, delivering UK and Scottish Government renewable targets and reducing our dependence on volatile wholesale gas markets by supporting indigenous low carbon electricity generation.
“With Ofgem providing much needed certainty of delivery, we can now engage with confidence with the supply chain to secure the specialist HVDC infrastructure and project delivery partners through an open and competitive procurement process.
"We now look forward to working with Ofgem, Government and wider stakeholders to accelerate the necessary investments in strategic grid reinforcements required to support our future energy needs."
Rob McDonald, Managing Director of SSEN Transmission
Ofgem has also provisionally approved plans for a separate 2GW HVDC subsea link from Torness in south east Scotland to Hawthorn Pit in north east England, which is being taken forward by SP Energy Networks and NGET, with a targeted energisation date of 2027. Two additional 2GW subsea HVDC links, from Peterhead to South Humber and from south east Scotland to South Humber, are also planned, with both currently having a targeted energisation of date of 2031.
SSEN Transmission is also taking forward plans for a further subsea HVDC link from Spittal in Caithness to Peterhead, alongside key onshore reinforcements from Beauly near Inverness to Peterhead; and from Beauly to Caithness.
Collectively, these additional reinforcements are key to unlocking the first phase of ScotWind and wider renewable energy developments planned across the country that are required to deliver a pathway to net zero. SSE plc is committed to work with Government, Ofgem and wider stakeholders to accelerate these investments to support 2030 renewable targets, deliver a pathway to net zero and reduce the country’s dependence on and price exposure to volatile global wholesale markets.