The high-voltage electricity superhighway will transport 2 gigawatts of renewable energy generated from Scottish wind farms to the north of England. This will help to alleviate the UK's reliance on volatile international gas markets and reduce the need to curtail renewable energy production during periods of high wind.
Ofgem, the UK's energy regulator, has identified cost savings of over £43 million for the project, which will be used to further reduce consumer bills. Additionally, £7.9 million has been allocated to support communities in Scotland and North-East England that will host the infrastructure.
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Beatrice Filkin, Ofgem Director of Major Projects, said: "(This) announcement takes us another step closer to achieving Great Britain's 2030 Clean Power ambitions. It means customers can reap the benefits of abundant homegrown wind faster, while also being increasingly shielded from volatile imported gas prices.
"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."
She added: "However streamlining our process does not mean we've handed a blank cheque to the developers. We've built in safeguards which mean we can step in where needed to ensure they deliver maximum efficiency and benefit to customers."
EGL1 is the second of 26 critical energy projects, worth an estimated £20billion to successfully complete Ofgem's new fast track Accelerated Strategic Transmission Investment (ASTI) 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.
