Ofgem is fast-tracking a project to deliver an electricity superhighway cable link reaching between Scotland and Yorkshire.

The energy regulator is fast-tracking 26 major electricity connection projects to boost grid capacity, which could deliver an estimated savings of £1.5bn.

A £3.4 billion funding package has been awarded to build a proposed new subsea and underground 500km cable between Scotland and Yorkshire which could power up to two million homes.

Eastern Green Link is the first project to complete its fast-track process to secure funding through Ofgem’s new Accelerated Strategic Transmission Investment (ASTI) framework.

The projects delivered via Ofgem’s ASTI programme are a vital part of the work to upgrade the energy system and allow more renewable energy to be brought onto the grid.

This will help to deliver Government’s goal of clean power by 2030 and reduce our reliance on volatile international gas markets.

EGL2 will deliver a 2GW high voltage electricity superhighway cable link between Peterhead in Aberdeenshire and Drax in North Yorkshire, which will help harness the potential of British offshore wind power.

Most of the cable (around 436km) will be under the North Sea with the remaining 70km buried underground onshore. Two converter stations, one at each end of the cable, are planned to help feed the electricity transported by the cable into the grid and from there onto consumers.

As part of its mission to upgrade the energy system at least possible cost to customers, Ofgem says it scrutinised the developers’ proposal and identified over £79m of savings which have been cut from the project without impacting delivery or quality.

ASTI projects aim to deliver an estimated £1.5bn in savings by reducing the need to compensate generators who are currently asked to turn off production during times of high wind due to a lack of grid capacity.

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“Ofgem is fully committed to supporting the government to meet its aims of getting clean power by 2030,” Jonathan Brearley, Ofgem CEO, said.

“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.

“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 be completed by 2029.