Ofgem has approved early funding and revised delivery dates for three proposed electricity transmission projects under its Accelerated Strategic Transmission Investment (ASTI) programme, the regulator said on Wednesday.
The projects include Eastern Green Link 3 (EGL3) and Eastern Green Link 4 (EGL4), each providing 2 gigawatts of subsea capacity between Scotland and England, and the Grimsby-Walpole New Connection (GWNC), a new onshore 400 kV link.
A cost-benefit analysis by grid operator NESO indicated that the redesigned projects are expected to deliver £3–6 billion in consumer benefits compared with the original network design, Ofgem said. Changes to project scope, forecast costs, and delivery timelines follow design adjustments aimed at reducing local environmental impact and enabling additional renewable generation connections.
New target dates have been set for December 2033 for GWNC and August 2034 for EGL3 and EGL4, with incentives for early delivery and penalties for delays. Ofgem also approved early construction and preconstruction funding for EGL3 and EGL4 to cover enabling works such as land acquisition, surveys, design, and procurement.
Beatrice Filkin, Ofgem director of major projects, said: “Today’s decision puts these projects in a prime position to compete in the global race for sought after components such as HVDC cables and work towards seeking planning approval.”
She added: “We’re neither handing TOs blank cheques nor greenlighting the projects themselves – that is rightly for the relevant planning authorities to decide. Through intelligent use of early investment and setting realistic but ambitious timescales, we are helping shield consumers from unnecessary costs.”
Filkin also noted that the regulator’s approach ensures unspent funds are returned to consumers if projects are altered, cancelled, or refused permission, and that transmission operators must demonstrate clear benefits for consumers to recover costs.
