Ofgem Approves Early Construction Funding Requests for Major Electricity Transmission Projects
Ofgem has approved Early Construction Funding (ECF) requests for many major electricity transmission projects.
The projects include:
- Eight Scottish Hydro Electric Transmission (SHET) electricity transmission projects.
- Sealink, a proposed NGET transmission project between Suffolk and Kent to provide transmission system reinforcement in the south and east regions.
The projects are part of the Accelerated Strategic Transmission Investment (ASTI) framework, Ofgem’s streamlined process will help achieve the Government’s clean power goals including connecting 43 – 50 GW of offshore wind by 2030. The funds will be used to finance early procurement of materials in high demand around the world such as HVDC cables.
Ofgem’s ECF mechanism helps Transmission Operators (TOs) to get their orders in at the earliest opportunity and reduces the risk of costly procurement delays. ECF is also used to finance associated enabling works such as land purchases and surveys.
ASTI identified 26 projects to help achieve the Government’s decarbonization targets and reduce Britain’s exposure to volatile international gas prices. The projects will enable more homegrown power to be harnessed and supplied to consumers, while also reducing the costs incurred when, for example, wind generators are paid to stop generating because there is no grid capacity for their energy.
“Releasing early investment to suitable projects equips British Transmission Operators to compete globally, avoid delays caused by supply chain constraints and secure the sought-after materials and components to boost our energy security and power our homes and economy,” said Beatrice Filkin, Ofgem Director of Major Projects. “We work with the TOs to ensure intelligent use of early investment, so that any losses are minimised, if projects are altered, cancelled or refused permission, and any unspent money is returned to consumers.”