OFGEM approves £1.2 BILLION Scottish subsea transmission link

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
OFGEM approves £1.2 BILLION Scottish subsea transmission link

The UK Office of the Gas and Electricity Markets (OFGEM) has approved the Scottish Hydro Electricity's Moray Firth subsea transmission link in Scotland, which represents the largest investment in the region's electricity network since the 1950s.

The total investment is estimated at £1.2 billion (US$1.94 billion). It is expected to connect 1.2 GW of new renewable electricity through the link between Caithness and Moray in Scotland. The subsea network is expected to be operational by 2018.

SHE Transmission has already submitted more details on the project, and OFGEM is currently analysing them to check that the spending, technical and delivery plans for the upgrade are appropriate and offer value for money for consumers. If OFGEM finds that the project could be delivered for less, then it will lower the amount of funding allowed to complete it.

Martin Crouch, Senior Partner, Transmission stated:

This is a major step forward for an essential upgrade to the high voltage grid so that more renewable energy can connect to the networks. Today's decision means that the company can move forward with work on the upgrade. We have already started on the next phase of checking SHE's spending plans and we will ensure it completes the work as efficiently as possible so that consumers pay a fair price for this.

The changes to transmission charging are the result of an extensive consultation process and detailed analysis. The new arrangements more accurately reflect the costs of Britain's diverse energy generation and will lead to lower costs overall for consumers.

OFGEM has also announced changes to the methodology for calculating what generators pay to use the electricity transmission network. This change is being made to better reflect the costs that different generators have on the system. It will come into effect on 1 April 2016. Ofgem analysis indicates the changes will lead to a more efficient system which will benefit consumers.

List of country news

Country news

  • July 15, 2014

    Antin completes acquisition of UK gas pipeline

    BG Group last week announced it had completed the sale of its 62.78% equity interest in the Central Area Transmission System (CATS) gas pipeline in the UK North Sea and associated infrastructure to Antin Infrastructure Partners. Read more
  • July 16, 2014

    Ofgem appoints preferred bidder for West of Duddon Sands offshore transmission assets

    Last week the UK Office of the Gas and Electricity Markets (Ofgem) appointed Blue Transmission as the preferred bidder to own and operate the offshore transmission links to the West of Duddon Sands windfarm. Read more
  • July 17, 2014

    GIB makes new offshore wind appointments

    The UK Green Investment Bank (GIB) has today announced two new senior appointments. Read more
  • July 18, 2014

    NextEnergy Solar Fund acquires solar plant

    NextEnergy Solar Fund Limited (NESF) has announced the signing of the share purchase agreement (SPA) to acquire a special purpose vehicle (SPV) owning the rights to construct the 3.8 MW Brickyard solar power plant, located in the Midlands, UK. Read more
  • July 18, 2014

    Chadbourne Expands Energy Project Finance Team in London

    Chadbourne & Parke has strengthened its project finance team in London through the addition of international partner Julien Bocobza. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.