TIDMSSE
RNS Number : 7016R
SSE PLC
07 July 2022
'Pathway to 2030' underpins GBP7bn+ investment in north of
Scotland transmission network
-- SSEN Transmission welcomes today's publication by National Grid ESO of the 'Pathway to 2030'
-- The blueprint confirms the need for over GBP7bn of investment
in electricity transmission infrastructure in north of Scotland,
providing greater confidence to SSE's expected RAV forecast
-- A policy document is to be published in following months, the
Energy Networks Strategic Framework, which is expected to include
details about expediting regulatory approvals to support
accelerated delivery of the 2030 investment plan
Major additional Projects included in the 'Pathway to 2030'
The 'Pathway to 2030' sets out the blueprint for the electricity
transmission network infrastructure required to enable the forecast
growth in renewable electricity across Great Britain, including the
UK and Scottish Governments 2030 offshore wind targets of 50GW and
11GW.
For the north of Scotland, this confirms the need for over
GBP7bn of investment in onshore electricity transmission
infrastructure, with the following reinforcements required to
deliver 2030 targets, several of which will require accelerated
delivery to meet 2030 connection dates:
-- two 2GW subsea high-voltage direct current (HVDC) links from
Peterhead to England: Eastern Green Link 2 (EGL2), connecting to
Drax for 2029; and EGL4 connecting to South Humber. Both links will
be taken forward as joint ventures with National Grid Electricity
Transmission (NGET);
-- a 2GW subsea HVDC link from Spittal in Caithness, connecting to Peterhead;
-- a 1.8GW subsea HVDC link from the Western Isles, connecting
to the north of Scotland mainland;
-- 400kV onshore reinforcements, between Beauly, Blackhillock,
New Deer and Peterhead; between Beauly, Loch Buidhe and Spittal;
and between Kintore, Tealing and Westfield; and
-- an upgrade of the existing Beauly to Denny line to enable 400kV operation on both circuits.
Alongside and co-ordinated with the 'Pathway to 2030'
investments, a new HVDC Switching Station at Peterhead, 'Project
Aquila', will be developed by SSEN Transmission to accelerate the
development of offshore wind. By integrating HVDC systems through
multi-terminal and multi-vendor interoperability, this will help
reduce the number of HVDC Convertor Stations required for future
HVDC links, reducing costs and minimising community and
environmental impacts. This innovation has today been announced as
one of the UK Government's successful first tranche 'Pathfinder'
projects, which are being progressed under the BEIS led Offshore
Transmission Network Review Early Opportunities workstream.
Further investments will be needed to realise ScotWind's full
ambition, with the ESO expected to publish a follow up exercise in
Q1 2023 setting out the additional network reinforcements
required.
Investing in a net zero network
The essential reinforcements signalled in the 'Pathway to 2030'
support SSE's Net Zero Acceleration Programme, which was updated in
May to signal that SSEN Transmission's gross RAV was expected to
reach over GBP12bn by 2031.
Whilst final investment will depend on Ofgem approval and all
necessary planning consents, these investment recommendations
provide even greater confidence in both this target and SSE's
expectation that its investment in Great Britain's electricity
infrastructure system could exceed GBP24bn this decade.
A framework for successful delivery
The need for these reinforcements has been further underlined
with the recent British Energy Security Strategy. This set out the
UK Government's plans to reduce the UK's dependence on imported gas
via the deployment of homegrown low carbon electricity generation
supported by robust electricity network infrastructure. At its
heart was a focus on expediting regulatory approvals and planning
consents, both of which SSEN Transmission considers integral to
accelerating the delivery of several key reinforcements that are
required to meet 2030 targets.
In the coming months, BEIS and Ofgem are due to publish the
Energy Networks Strategic Framework setting out how the commitments
in the British Energy Security Strategy will be delivered to
support accelerated delivery. SSEN Transmission believes this needs
to fast track regulatory approval of the 2030 plan as a GB wide
package of works, provide certainty of TO delivery, alongside
planning reform to expedite consenting. SSEN Transmission will
continue to work constructively with BEIS and Ofgem to support the
timely delivery of the 2030 plan and associated policy development,
and with the Scottish Government on consenting, given planning
policy is devolved.
Rob McDonald, Managing Director of SSEN Transmission, said:
"Today's publication of the Pathway to 2030 marks a huge step
forward for those wanting an electricity system independent of
imported gas, reducing our price exposure to volatile global
wholesale markets and helping deliver long term energy
affordability.
"With over GBP7bn of investment in grid infrastructure in the
north of Scotland alone, this blueprint will unlock Scotland's vast
offshore wind resources by connecting the huge renewable energy
potential of wind energy needed to meet legally binding emissions
reduction targets. This major investment will also provide huge
economic opportunities for communities across the north of
Scotland, supporting thousands of skilled jobs, as we continue to
deliver a network for net zero emissions in the north of
Scotland.
"Key to accelerating delivery of this unprecedented programme of
investment will be a robust regulatory framework that fast tracks
regulatory approvals as a package of works, provides certainty of
delivery, alongside reform of the planning system to expedite
consenting.
"We now look forward to working constructively with the UK and
Scottish Governments, Ofgem, our supply chain, the wider energy
industry and our stakeholders to deliver the timely, coordinated
and efficient investment in grid infrastructure that is key to
deliver 2030 targets and a pathway to net zero."
ENDS
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