Ofgem has approved GBP 1.1 bln in funding for the new subsea link in the north of Scotland that is supposed to connect 1.2 GW of new renewable electricity once completed in 2018, Ofgem’s press release reads.
The regulator’s decision is GBP 105 mln less than the funding request from Scottish Hydro Electricity Transmission (SHE Transmission).
This decission is based on a range of analysis including detailed review of some costs as well as a review of SHE Transmission’s procurement strategy and processes, it is stated in the document published by Ofgem.
However, the final decision is GBP 56 mln more than Ofgem proposed in October due to new information provided by SHE Transmission and consultations that followed.
The subsea link will connect the electricity grid on either side of the Moray Firth.
Scottish Hydro Electric Transmission (SHE Transmission) proposed the installation of subsea cable as a result of growing generation of electricity from renewable sources in Northern Scotland in the recent years.
The project represents the largest investment in North’s electricity network since the 1950’s.
[mappress mapid=”63″]
Source: Ofgem/SHE Transmission