UK regulator approves 2 GW subsea cable connecting renewable energy hubs

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The United Kingdom’s largest subsea cable to date has been approved by the country’s energy regulator. Ofgem has confirmed final approval on the costs associated with delivering Eastern Green Link 2 (EGL2). It means construction can now start on a 525 kV 2 GW subsea connection between Peterhead in the north-east of Scotland and Drax on the east coast of England. The regulator’s final decision on the project assessment for the high voltage direct current (HVDC) connection is the last key approval in the process. EGL2 is expected to enter operation in 2029.

North Sea waters off the northeastern coasts of England and Scotland are key hubs for offshore wind generation in the United Kingdom, with projects including the 1,075 MW Seagreen Wind Farm and 3.6 GW Dogger Bank Wind Farm. EGL2 will connect the regions via an HVDC link exceeding 500 km.

Electricity system operator National Grid ESO has previously recommended new transmission infrastructure in the region, including Eastern Green Link 2, in response to network congestion at the border between England and Scotland. In its Beyond 2030 report published earlier in 2024, the ESO claimed such a link would provide “vital capacity” to alleviate transmission network bottlenecks without requiring significant onshore infrastructure.

EGL2 is a joint venture between transmission owners National Grid and SSEN Transmission. The cable is the single largest investment in electricity transmission infrastructure in Great Britain on record, with a total expected nominal investment of around GBP 4.3 billion ($5.5 billion). Contracts to deliver the project have been awarded to Prysmian Group, which will supply 1,000 km of cable, and Hitachi Energy and BAM for the supply of converter stations at either end of the subsea link.

The 2 GW cable is part of SSEN Transmission’s Pathway to 2030 program, a GBP 20 billion investment to upgrade the electricity network in the north of Scotland, which the company claims will “unlock the country’s renewable energy resources.”

In a press release, EGL2 project director Ricky Saez described Ofgem’s approval as a “major milestone … not only will EGL2 will play a major role in bolstering energy security and contributing to net zero targets, it will also provide a lasting legacy in local communities where our teams are already supporting local environmental initiatives that enhance community wellbeing.”

Sandy Mactaggart, director of offshore delivery for SSEN Transmission, added that SSEN Transmission also looks forward to working with National Grid on future projects. These include a third Eastern Green Link offshore HVDC, running from Peterhead to Lincolnshire, England.

Ofgem CEO Jonathan Brearley said the regulator is “fully committed” to supporting the UK government in its bid to decarbonize Great Britain’s energy sector by 2030. He added that Ofgem’s Accelerated Strategic Transmission Investment (ASTI) framework, which exempts certain strategic projects from competition, has accelerated approval times for projects such as EGL2 by up to two years.

“However, streamlining the process does not mean blank checks for developers as we are able to step in and make financial adjustments to maximize efficiency and consumer benefit,” he said.

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