A £2 billion funding package has been approved for Eastern Green Link 1 (EGL1), a subsea and underground electricity cable connecting Scotland to northern England.
The 196 kilometre high-voltage link will carry 2 gigawatts (GW) of wind-generated power from Torness in East Lothian to Hawthorn Pit in County Durham, supporting the UK’s clean energy transition and boosting energy security.
The project is expected to save £870 million annually by cutting compensation paid to wind generators when grid capacity is insufficient.
These savings are expected to drive down consumer bills while aligning with the UK’s 2030 clean power targets.
The National Energy System Operator (NESO) has identified EGL1 as vital for meeting these goals.
Most of the cable will run under the North Sea, with 20 kilometres of underground connections linking it to key substations.
To minimise costs, Ofgem has reduced project expenses by £43 million.
Communities hosting the infrastructure will also benefit from a £7.9 million community fund.
Beatrice Filkin, Ofgem Director of Major Projects, said: “Today’s announcement takes us another step closer to achieving Great Britain’s 2030 Clean Power ambitions.
“It means customers can reap the benefits of abundant homegrown wind faster, while also being increasingly shielded from volatile imported gas prices.”