REG - SSE Plc - SSEN Transmission response to Ofgem ASTI framework

SSEAnnouncement

15/12/2022 07:30

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RNS Number : 8187J  SSE PLC  15 December 2022

Ofgem approves transmission investments required for 2030 Government targets

SSEN Transmission welcomes Ofgem's approval of the need for the strategic
electricity transmission reinforcements required to deliver the UK
Government's 50GW offshore wind by 2030 target, set out as part of the
regulator's Accelerated Strategic Transmission Investment (ASTI) framework.

Today's decision confirms that all SSEN Transmission projects identified by
the Electricity System Operator (the ESO) as required to meet 2030 offshore
wind targets will now be taken forward as part of the ASTI framework.  These
are:

·    Two 2GW subsea high-voltage direct current (HVDC) links from
Peterhead to England, both of which 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 Arnish on the Western Isles to the
Beauly area near Inverness;

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

·    Uprating the existing Beauly to Denny line to enable 400kV operation
on both circuits.

Ofgem has also confirmed that these reinforcements will be exempt from
proposals to introduce competitive ownership of onshore electricity networks,
which are currently being considered as part of the UK Government's draft
Energy Bill.  By confirming existing electricity transmission licensees will
remain the delivery body for these reinforcements, Ofgem has provided the
much-needed certainty required to support timely and accelerated delivery,
including early supply chain engagement.

These investments reinforce the SSE Group's fully funded Net Zero Acceleration
Programme (NZAP), which in Great Britain alone, could see SSE's investment
exceed £24bn this decade, directly alleviating the UK's energy crisis.

With more material still to be released by Ofgem - particularly the proposed
regulatory licence changes to enact the ASTI framework decision which are
expected to be consulted on shortly - SSEN will continue to review and assess
the detail as it is published to ensure the ASTI framework appropriately
balances risk and reward, and is financeable, to enable SSEN Transmission to
commit to accelerated delivery for 2030.

Rob McDonald, Managing Director of SSEN Transmission, said:

"Today's publication of the ASTI Framework is a critical milestone to support
our collective net zero and energy security ambitions and we welcome Ofgem's
approval of the need for the investments required to deliver 2030 offshore
wind targets.

"Accelerating the development and delivery of the strategic electricity
transmission infrastructure required to enable the deployment of homegrown and
affordable, low carbon power, is arguably the most important enabler to
securing the UK's future energy security and net zero ambitions.  This
includes unlocking the first phase of the ScotWind leasing round, supporting
UK and Scottish Government targets.

"As we continue to assess the detail of today's publication and await Ofgem's
proposed regulatory licence changes, we remain committed to work
constructively with Ofgem and other stakeholders to establish a regulatory
framework that appropriately balances risk and reward, and ultimately
accelerates the delivery of electricity transmission infrastructure required
to meet our future energy ambitions."

SSE contact:

Investors: ir@sse.com | +44 (0)345 0760 530

Media:  media@sse.com (mailto:media@sse.com)  |Greg Clarke, Raymond
Buchanan | +44 (0)345 0760 530

ENDS

About SSE

SSE has the largest renewable electricity portfolio in the UK and Ireland,
providing energy needed today while building a better world of energy for
tomorrow. It develops, builds, operates and invests in low-carbon electricity
infrastructure needed in the transition to net zero, including onshore and
offshore wind, hydro power, electricity transmission and distribution grids,
and efficient gas, alongside providing energy products and services for
businesses. UK listed, SSE is a major contributor to the UK and Ireland
economies, employs around 11,000 people and is real Living Wage and Fair Tax
Mark accredited.

SSE's strategy is to create value for shareholders and society in a
sustainable way by developing, building, operating, and investing in the
electricity infrastructure and businesses needed in the transition to net
zero. Its strategic focus is on renewables and regulated electricity networks,
businesses which have strong, net zero-aligned growth potential with common
skills and capabilities in the development, construction, procurement,
financing, and operation of world-class, highly technical electricity assets.

About SSEN Transmission

SSEN Transmission is responsible for the electricity transmission network in
the north of Scotland, investing in and maintaining the high voltage 132kV,
220kV, 275kV and 400kV electricity transmission network.

SSEN Transmission's strategic objective is to enable the transition to a low
carbon economy.  It does this by building the electricity transmission
network infrastructure required to connect and transport renewable electricity
from the north of Scotland to areas of demand, as it delivers a network for
net zero emissions.

After the recent minority stake sale, SSEN Transmission is now owned 75% by
SSE plc and 25% by Ontario Teachers' Pension Plan Board (Ontario Teachers').

 

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