REG - SSE Plc - SSEN Transmission - Network Options Assessment

SSEAnnouncement

31/01/2022 10:35

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RNS Number : 1526A  SSE PLC  31 January 2022

SSEN Transmission welcomes Networks Options Assessment £5bn+ investment
recommendation

SSEN Transmission - the electricity transmission owner for the north of
Scotland and part of the SSE Group, the UK's clean energy champion - welcomes
today's publication by National Grid Electricity System Operator (NGESO) of
this year's Networks Options Assessment (NOA), which recommends the investment
of over £5bn in electricity transmission infrastructure in the north of
Scotland that will be critical for maintaining a pathway to deliver the UK and
Scotland's net zero commitments and renewable targets.

This year's NOA sets out the strategic reinforcements that will be required to
enable the forecast growth in renewable electricity across GB.  It outlines
the investments needed to alleviate constraints on the transmission system by
providing the large bulk-transfer capability necessary to connect and
transport renewable electricity generation from remote sources to areas of
demand.

The NOA recommendations for reinforcements in SSEN Transmission's network
region include:

·    Two subsea high-voltage direct current (HVDC) links from Peterhead to
England;

·    A second HVDC link from Spittal in Caithness, connecting to
Peterhead;

·    Strategic onshore reinforcements to the north of Inverness and
between Inverness and Peterhead.

These reinforcements are required under all credible future energy scenarios
for net zero; are necessary to underpin the delivery of the UK Government's
target of 40GW of offshore wind by 2030 target and its commitment to
decarbonise the power sector by 2035; as well as the Scottish Government's
11GW of offshore wind and 75% emissions reduction targets by 2030.

These investments, subject to all necessary planning and regulatory approvals,
support SSE's recently announced Net Zero Acceleration Programme, which set
out plans to invest £12.5bn in the five years to 2026, or £7m every day.

SSE's Net Zero Acceleration Programme also set out a target range for SSEN
Transmission's gross RAV of £8-10bn by 2031 with a path for gross RAV to
reach £12bn by 2031 in the event of an acceleration of reinforcement
expenditure.  The investments signalled in this year's NOA and the clear need
to accelerate reinforcements to unlock ScotWind provide a clearer line of
sight of the investment pipeline and demonstrate tangible progress towards
future RAV growth forecasts.

Rob McDonald, Managing Director of SSEN Transmission, said:

"This year's NOA report fires the starting gun for over £5bn of investment in
grid infrastructure in the north of Scotland.  This will be critical to
enabling the growth of renewable electricity in the region needed to deliver
net zero, including the first step in unlocking the vast increase in offshore
wind expected following the recently announced outcome of the ScotWind leasing
round.

"These investments will also provide huge economic opportunities for the north
of Scotland and throughout GB, supporting hundreds of skilled jobs in the
development and construction phases.  Due to the scale of investment required
in grid infrastructure, we believe there is a clear opportunity for
Governments and industry to work together to encourage inward investment in UK
supply chain manufacturing and skills development.

"In enabling the connection of indigenous, clean renewable electricity
generation, these investments will also be crucial in reducing the UK's
dependence on volatile global wholesale gas markets.

"We now look forward to working constructively with Government, Ofgem, the
wider industry and our stakeholders to provide the timely, coordinated and
efficient investment in grid infrastructure that is key to our collective net
zero ambitions."

SSEN Transmission will now undertake a major programme of engagement with
stakeholders and local communities to help shape the development of these
reinforcements; as well as exploring with Government, industry and wider
stakeholders the significant supply chain opportunities and associated
economic growth these investments present.

 

 

 

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