A joint venture between National Grid Electricity Transmission and SP Energy Networks, the £2.5bn project will see the installation of a 196km, high voltage, subsea electricity cable between Torness in East Lothian, Scotland, and Hawthorn Pit in County Durham.
Construction work is expected to begin on the Eastern Green Link 1 project onshore in Spring 2025 with offshore works commencing in Summer 2025.
Most of the cable will be under the North Sea, with the remaining 20km of cables underground linking the cable to substations and converter stations in Scotland and England.
The link is essential to transport large volumes of electricity, enough to power 2 million homes, up and down the country.
To support the link, two high voltage direct current converter stations will be built, one in Torness and one in Hawthorn Pit, converting the alternating current of the UK’s electricity grid into direct current, the most efficient way for electricity to travel across such a distance.
Zac Richardson, Offshore Delivery Director for National Grid said: “Ofgem’s announcement is another critical milestone to support net zero and energy security ambitions. We now look forward to delivering supply chain contracts, jobs, and skills, and helping to fulfil the government’s ambition for the UK to be a clean energy superpower.
Pearse Murray, SP Transmission Director at SP Energy Networks, said: “Getting the go-ahead for this critical green electricity superhighway is an important milestone.
“We look forward to developing this transformative infrastructure project, but given its technically complex and innovative nature other critical decisions remain to be taken and we continue to engage with Ofgem on these.
“This offshore link will transport enough electricity for 2 million homes alone and with three more links expected, the east coast could see electricity for over 8 million homes transported under the sea making a significant difference to the UK’s economic and climate ambitions.
“There is a huge pipeline of offshore wind projects waiting to be built, providing the UK with green, renewable electricity, these links will ensure the renewable energy generated doesn’t go to waste.”
Around £1.8bn of contracts have been awarded to deliver the project, including £750m with Prysmian Group to deliver the UK’s first 525kV HVDC electricity transmission cable.
The consortium of GE Vernova and Metlen Energy & Metals has been awarded a £1bn contract to supply and construct two HVDC converter stations, one at each end of the link.
Beatrice Filkin, Ofgem director of major projects, said: “Our fast-track process provides developers with access to some initial upfront funding from the projected budget, so they can secure the supply chain commitments needed to secure the sought-after materials to deliver this project as soon as possible.”
EGL1 is the second of 26 critical energy projects, worth an estimated £20bn to complete Ofgem’s new fast-track Accelerated Strategic Transmission Investment framework.
ASTI speeds up the funding process for projects by up to two years, allowing electricity generated by offshore wind to be delivered to British customers sooner.