A framework for transmission growth16 Jun 2023
SSEN Transmission operates one of the fastest growing regulated electricity networks in Europe. The second year of RIIO-T2 saw delivery milestones on the Shetland HVDC (see separate case study) and SF6-free Kintore substation projects.
Progress was also made through Ofgem’s Uncertainty Mechanism on additional investments in an East Coast HVDC link, Argyll reinforcement works and a Skye link.
Looking further out, and subject to the right generator commitments and planning and Ofgem approvals, the business expects gross Regulated Asset Value to exceed £15bn by FY31.
This projection is based on confidence provided by Ofgem’s Accelerated Strategic Transmission Investment framework and its updated Holistic Network Design, which recognise the need for significant networks
investment to meet the UK’s ambition for 50GW of offshore wind by 2030.
The ASTI announcement in December 2022 means SSEN Transmission can now take forward four further subsea HVDC links; a number of new 400kV reinforcement projects and a 400kV upgrade to the existing Beauly-Denny line.
At the same time, it is vital to recognise the importance of effective engagement with communities as this transformational infrastructure roll-out progresses.
SSEN Transmission is therefore working closely with impacted communities and other local stakeholders to ensure their views are heard and factored into decision making.
This growth trajectory is underpinned by the proceeds of a minority 25% stake sale in SSEN Transmission in November 2022, which unlocked the premium value in the business and helped rebalance SSE’s mix of regulated and market-based revenue streams.