By City A.M – Nov 17, 2024, 12:00 PM CST
The UK government has approved a £2 billion subsea cable project (Eastern Green Link 1) to transport electricity generated from North Sea wind farms.
The project is expected to bolster the UK’s energy security, reduce customer bills by £870 million per year, and support the UK’s 2030 carbon-neutral goal.
Ofgem’s fast-track funding process has enabled swift project delivery, ensuring customers can benefit from clean, affordable energy sooner.
A £2bn subsea and underground cable which will power millions of UK homes has received final funding approval today.
The 196km-long Eastern Green Link 1 (EGL1) cable, which will be primarily laid under the North Sea, is expected to bolster the UK’s energy security and reduce customer bills by £870m per year.
The National Energy System Operator (NESO) flagged the EGL1 as essential to the UK’s 20030 clean energy goals, as it will transport electricity generated from North Sea wind farms from East Lothian to Country Durham.
This will be part of a broader push towards maximising domestic wind power, and away from the dependence of volatile gas markets.
Communities along the cable route in Scotland and northeast England will benefit from a £7.9m social value fund.
The Office of Gas and Electricity Markets,Ofgem, has helped streamline funding, saving £43m due to its new Accelerated Strategic Transmission Investment Framework (ASTI).
This fast-track process has given developers early access to funds, allowing them to secure necessary materials and ensure a swift project delivery.
Beatrice Filkin, Ofgem’s director of major proejcts, said: “This means customers can reap the benefits of abundant homegrown wind faster while being increasingly shielded from volatile imported gas prices”.
On Ofgem’s role in ensuring cost efficiency, she also said: “We’ve built in safeguards to step in as needed for maximum customer benefit.”
The approval of EGL1 adheres with government policies aiming to reach a carbon-neutral power system by 2030, which has pushed demand for clean energy projects across the UK.
The project will be joining 25 other infrastructure projects under Ofgem’s ASTI framework, designed to speed up modernisation while keeping costs down.
By City AM
Download The Free Oilprice App Today
Back to homepage