Eastern Green Link 1 Secures $2.5 Billion Funding

EGL1 is the second of 26 critical energy projects under Ofgem’s Accelerated Strategic Transmission Investment (ASTI) framework.

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The Eastern Green Link 1 (EGL1), a transformative high-voltage electricity transmission project, has received a $2.5 billion funding package to bolster energy security, reduce reliance on volatile international gas markets, and advance the UK Government’s Clean Power 2030 goals. This major infrastructure project aims to connect Scotland and northern England with a 196-kilometer subsea and underground cable capable of transporting two gigawatts of wind-generated electricity.

A Key Step Toward Clean Power Goals

The National Energy System Operator’s (NESO) Clean Power 2030 Report highlights EGL1 as essential. It is designed to facilitate the transport of clean, homegrown energy from the North Sea wind farms to power approximately two million homes. Most of the cable will lie beneath the North Sea, with a 20-kilometer onshore segment connecting it to substations in Torness, Scotland, and Hawthorn Pit, England.

NESO projects the EGL1 will yield annual savings exceeding $1 billion by eliminating the need to compensate wind generators for curbing output during high-wind periods. This cost efficiency will directly benefit consumers by lowering energy bills.

EGLI
EGLI

Supporting Community and Economic Growth

In addition to delivering affordable clean energy, the project has committed $10 million to a community and social value fund for areas hosting its infrastructure in Scotland and northeast England. A 2020 National Grid report estimates that the shift to net-zero energy could create 400,000 jobs by 2050, including 150,000 roles in Scotland and northern England—some directly tied to the EGL1 and its sister project, Eastern Green Link 2.

Streamlined Development Through ASTI Framework

EGL1 is the second of 26 critical energy projects under Ofgem’s Accelerated Strategic Transmission Investment (ASTI) framework. ASTI has fast-tracked the regulatory and funding processes, cutting development time by up to two years. This accelerated approach aligns with the Government’s targets to achieve 50GW of offshore wind capacity by 2030 and a fully decarbonized power grid by 2035.

Beatrice Filkin, Ofgem's Director of Major Projects, emphasized the significance of EGL1:

"Today’s announcement brings us closer to achieving Great Britain’s 2030 clean power ambitions. By harnessing homegrown wind power, we can shield consumers from volatile gas prices while delivering abundant, affordable energy."

Filkin also noted that stringent safeguards are in place to ensure efficient project execution, maximizing consumer benefits.

A Crucial Element of the UK’s Energy Strategy

EGL1, a collaboration between SP Energy Networks and National Grid Electricity Transmission, will enhance the energy grid’s capacity and reduce the environmental and economic costs of electricity transmission constraints. NESO estimates that the timely delivery of ASTI projects, including EGL1, could result in $2.6 billion in net benefits through reduced carbon emissions and energy costs.

The UK Government’s ambition to build 50GW of offshore wind capacity by 2030 underscores the importance of projects like EGL1. According to NESO’s Clean Power 2030 Report, robust infrastructure is critical for meeting these targets. A broader energy roadmap, developed in collaboration between Ofgem and the government, is set to be unveiled next month.


Deadline: December 20

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