REG - SSE Plc - Pathway to 2030

SSEAnnouncement

07/07/2022 12:15

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RNS Number : 7016R  SSE PLC  07 July 2022

'Pathway to 2030' underpins £7bn+ investment in north of Scotland
transmission network

·    SSEN Transmission welcomes today's publication by National Grid ESO
of the 'Pathway to 2030'

·    The blueprint confirms the need for over £7bn of investment in
electricity transmission infrastructure in north of Scotland, providing
greater confidence to SSE's expected RAV forecast

·    A policy document is to be published in following months, the Energy
Networks Strategic Framework, which is expected to include details about
expediting regulatory approvals to support accelerated delivery of the 2030
investment plan

Major additional Projects included in the 'Pathway to 2030'

The 'Pathway to 2030' sets out the blueprint for the electricity transmission
network infrastructure required to enable the forecast growth in renewable
electricity across Great Britain, including the UK and Scottish Governments
2030 offshore wind targets of 50GW and 11GW.

For the north of Scotland, this confirms the need for over £7bn of investment
in onshore electricity transmission infrastructure, with the following
reinforcements required to deliver 2030 targets, several of which will require
accelerated delivery to meet 2030 connection dates:

·    two 2GW subsea high-voltage direct current (HVDC) links from
Peterhead to England: Eastern Green Link 2 (EGL2), connecting to Drax for
2029; and EGL4 connecting to South Humber.  Both links will be taken forward
as joint ventures with National Grid Electricity Transmission (NGET);

·    a 2GW subsea HVDC link from Spittal in Caithness, connecting to
Peterhead;

·    a 1.8GW subsea HVDC link from the Western Isles, connecting to the
north of Scotland mainland;

·    400kV onshore reinforcements, between Beauly, Blackhillock, New Deer
and Peterhead; between Beauly, Loch Buidhe and Spittal; and between Kintore,
Tealing and Westfield; and

·    an upgrade of the existing Beauly to Denny line to enable 400kV
operation on both circuits.

Alongside and co-ordinated with the 'Pathway to 2030' investments, a new HVDC
Switching Station at Peterhead, 'Project Aquila', will be developed by SSEN
Transmission to accelerate the development of offshore wind. By integrating
HVDC systems through multi-terminal and multi-vendor interoperability, this
will help reduce the number of HVDC Convertor Stations required for future
HVDC links, reducing costs and minimising community and environmental
impacts.  This innovation has today been announced as one of the UK
Government's successful first tranche 'Pathfinder' projects, which are being
progressed under the BEIS led Offshore Transmission Network Review Early
Opportunities workstream.

Further investments will be needed to realise ScotWind's full ambition, with
the ESO expected to publish a follow up exercise in Q1 2023 setting out the
additional network reinforcements required.

Investing in a net zero network

The essential reinforcements signalled in the 'Pathway to 2030' support SSE's
Net Zero Acceleration Programme, which was updated in May to signal that SSEN
Transmission's gross RAV was expected to reach over £12bn by 2031.

Whilst final investment will depend on Ofgem approval and all necessary
planning consents, these investment recommendations provide even greater
confidence in both this target and SSE's expectation that its investment in
Great Britain's electricity infrastructure system could exceed £24bn this
decade.

A framework for successful delivery

The need for these reinforcements has been further underlined with the recent
British Energy Security Strategy.  This set out the UK Government's plans to
reduce the UK's dependence on imported gas via the deployment of homegrown low
carbon electricity generation supported by robust electricity network
infrastructure.  At its heart was a focus on expediting regulatory approvals
and planning consents, both of which SSEN Transmission considers integral to
accelerating the delivery of several key reinforcements that are required to
meet 2030 targets.

In the coming months, BEIS and Ofgem are due to publish the Energy Networks
Strategic Framework setting out how the commitments in the British Energy
Security Strategy will be delivered to support accelerated delivery.  SSEN
Transmission believes this needs to fast track regulatory approval of the 2030
plan as a GB wide package of works, provide certainty of TO delivery,
alongside planning reform to expedite consenting.  SSEN Transmission will
continue to work constructively with BEIS and Ofgem to support the timely
delivery of the 2030 plan and associated policy development, and with the
Scottish Government on consenting, given planning policy is devolved.

Rob McDonald, Managing Director of SSEN Transmission, said:

"Today's publication of the Pathway to 2030 marks a huge step forward for
those wanting an electricity system independent of imported gas, reducing our
price exposure to volatile global wholesale markets and helping deliver long
term energy affordability.

"With over £7bn of investment in grid infrastructure in the north of Scotland
alone, this blueprint will unlock Scotland's vast offshore wind resources by
connecting the huge renewable energy potential of wind energy needed to meet
legally binding emissions reduction targets. This major investment will also
provide huge economic opportunities for communities across the north of
Scotland, supporting thousands of skilled jobs, as we continue to deliver a
network for net zero emissions in the north of Scotland.

"Key to accelerating delivery of this unprecedented programme of investment
will be a robust regulatory framework that fast tracks regulatory approvals as
a package of works, provides certainty of delivery, alongside reform of the
planning system to expedite consenting.

"We now look forward to working constructively with the UK and Scottish
Governments, Ofgem, our supply chain, the wider energy industry and our
stakeholders to deliver the timely, coordinated and efficient investment in
grid infrastructure that is key to deliver 2030 targets and a pathway to net
zero."

 

ENDS

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