August 13, 2024: UK energy market regulator Ofgem’s Accelerated Strategic Transmission Investment (ASTI) framework is fast-tracking 26 major connection projects to enhance grid capacity, potentially saving £1.5 billion. 

The framework has sanctioned a £3.4 billion funding package for the Eastern Green Link 2 (EGL2), a planned 500 km subsea and underground cable connecting Scotland and Yorkshire. This project, which will power up to 2 million homes, is the first of the 26 projects to secure fast-track funding through ASTI, speeding up the process by up to two years. 

EGL2 will create a 2GW high-voltage "superhighway" cable linking Peterhead in Aberdeenshire with Drax in North Yorkshire, enabling the integration of British offshore wind power. The majority of the cable (approximately 436 km) will be underwater, with 70 km running underground onshore. Two converter stations will facilitate the connection of this cable to the grid.

Ofgem’s review of the developers’ proposal identified over £79 million in savings without compromising project quality or delivery. ASTI projects are crucial for upgrading the energy system, enabling more renewable energy integration, supporting the Government’s clean power goals for 2030, and reducing reliance on volatile international gas markets. By increasing grid capacity, these projects are expected to generate significant savings by minimising the need to turn off generators during periods of high wind.

In the company's press release, Jonathan Brearley, Ofgem CEO, stated: “Ofgem is fully committed to supporting the government to meet its aims of getting clean power by 2030. Today's announcement is a further step in putting the regulatory systems and processes in place to speed up network regulation to achieve its aim. 

He further added, “Accelerated Strategic Transmission Investment (ASTI) accelerates approval times for projects such as Eastern Green Link 2 (EGL2) by up to two years. However, streamlining the process does not mean blank cheques for developers as we are able to step in and make financial adjustments to maximise efficiency and consumer benefit.” Work on the project is expected to begin later this year and to be complete by 2029.

The approval of £3.4 billion for the Eastern Green Link 2 marks a key milestone in boosting grid capacity and integrating renewable energy sources. This project not only supports the Government’s clean power goals but also promises substantial cost savings and enhanced efficiency in the energy system. By expediting these developments, ASTI is paving the way for a more resilient and sustainable energy future.