(Bloomberg) -- UK energy regulator Ofgem gave the green light to a £2 billion funding package to build a proposed high-voltage electricity “superhighway” under the North Sea.
The project, called Eastern Green Link 1, requires the laying of 196 kilometers (122 miles) of cables to transport wind energy from Scotland to northern England, the energy watchdog said in a statement. It could power up to 2 million homes.
Britain has an ambitious plan to boost offshore wind capacity and eliminate emissions from power generation by 2030. However, building grid infrastructure is as important as constructing the wind farms to allow the clean electricity to get to the people who need it and potentially lower bills.
The new link, which is being developed by SP Energy Networks and National Grid Electricity Transmission, is part of an Ofgem initiative to accelerate investment in the nation’s power network.
It could save consumers £870 million per year by reducing the need to pay wind generators who are asked to turn off production when there’s not enough grid capacity during times of high wind, the regulator said.
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