Ofgem has given the go-ahead for early investment in three major high-voltage electricity links designed to ease pressure on the UK’s grid and cut the cost of turning off windfarms during periods of high generation.
These projects, often described as electricity “superhighways”, will connect renewable power from Scotland and the North Sea to areas of high demand in the south of England. They are now expected to come online in the early 2030s, several years earlier than originally planned.
Why the projects are needed
The UK’s grid is currently facing bottlenecks, particularly when renewable generation is high. When the system becomes overloaded, windfarms are paid to reduce their output – a cost ultimately passed on to consumers.
Without new infrastructure, these so-called “constraint payments” are projected to exceed £12bn a year by the end of the decade.
By increasing the grid’s capacity to move electricity across the country, the new projects aim to reduce the need for these payments and improve the use of renewable energy already being generated.
What Ofgem has approved
Ofgem has agreed to allow National Grid, SSE and Scottish Power to begin early-stage investment on key projects:
- Eastern Green Link (EGL) subsea cables
Two new high-voltage subsea cables will connect offshore wind generation in the North Sea to consumers further south. Both are now expected to be operational by 2034.
- Grimsby–Walpole electricity link (GWNC)
A 75-mile (120 km) onshore 400Kv electricity link between Grimsby and Walpole, which will help move offshore wind power inland. It is planned to start delivering power by 2033.
Ofgem says that bringing these projects forward could save consumers £3-6bn overall compared with a later delivery timeline. Most of these savings would come from reducing the nearly £2bn currently paid each year to generators to switch off during grid congestion.
Will this affect energy bills?
The regulator has acknowledged that fast-tracking investment means some upfront costs will reach consumer bills sooner. This comes shortly after Ofgem approved £28bn of spending for upgrades across Great Britain’s gas and electricity networks.
However, Ofgem has not confirmed exactly how or when these earlier costs might show up on bills.
Concerns from local communities
While the investment is seen as important for energy security and net zero, several grid upgrade projects across the country have faced strong opposition from local communities. Concerns centre on disruption from construction and the long-term visual impact of new energy infrastructure.
Ofgem emphasised that its approval does not override planning processes.
Beatrice Filkin, Ofgem’s Director of Major Projects, said:
“We’re neither handing [energy companies] blank cheques nor greenlighting the projects themselves, that is rightly for the relevant planning authorities to decide. Through intelligent use of early investment and setting realistic but ambitious timescales, we are helping shield consumers from unnecessary costs.
She added that fast-tracking projects could help the UK compete in global supply chains, as other major economies also race to expand and modernise their electricity grids.
A global push to upgrade grids
The move comes as the European Commission prepares to announce a €1.2 trillion plan to strengthen the EU’s electricity networks, including major updates to both distribution and transmission systems. The commission expects to spend about €730bn on distribution networks and €477bn on transmission grids, the report said, citing a leaked document.
