SSEN Transmission response to Ofgem ASTI framework

Source: RNS
RNS Number : 8187J
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: | +44 (0)345 0760 530

Media: |Greg Clarke, Raymond Buchanan | +44 (0)345 0760 530


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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