Ofgem Ups Scottish Subsea Link Funds by £56 Mln
- Business & Finance
Ofgem has today approved £1.1 billion funding for a new subsea link in the north of Scotland.
The regulator’s decision is £105 million less than the funding request from Scottish Hydro Electricity Transmission (SHE Transmission) to ensure consumers pay no more than necessary.
The final funding decision is £56 million more than Ofgem’s view in October. This follows consultation responses and new information provided by SHE Transmission.
The new link will connect 1.2GW of new renewable electricity generation following completion in 2018. This additional capacity will increase the resilience of Britain’s energy infrastructure. It will connect the electricity grid on either side of the Moray Firth.
Ofgem’s lower cost assessment is based on a range of analysis including unit cost benchmarking, a detailed review of some costs, comparisons to similar projects, and a review of SHE Transmission’s procurement strategy and processes.