After years of stagnation, the UK’s green transition finally appears to be underway, with major support from the recently elected Labour government. Plans for an electricity superhighway between Scotland and England have been approved, supported by new wind and solar power projects across the UK. This month, UK energy regulator Ofgem approved a $5.6 billion electricity superhighway project to carry renewable energy 300 miles between northeast Scotland and northern England. The Eastern Green Link submarine cable will be the country’s longest yet, and in phase one will carry enough energy to power around 2 million homes in England. This will be the largest single investment in the UK’s electricity grid to date, funded by energy bills. Work on the project by SSE and National Grid is due to begin later this year, with phase one to be completed by 2029.
Ofgem wants to introduce 26 major energy network projects households to new wind farms across the country. The regulator specifiedThe plans are “critical to modernising the energy system and bringing more renewable energy onto the grid” and represent “a major step” towards the new government’s goal of building a net-zero electricity system by the end of the decade. Ofgem’s fast-track process has helped speed up the completion of the Eastern Green Link by up to two years. The regulator also hopes to reduce project costs after asking project developers to make savings of almost $103 million.
In recent years, the UK has struggled to bring new renewable energy projects online. As more investors have funded wind and solar projects, the need to upgrade the country’s electricity grid has become apparent. However, due to a lack of government support and private funding, this has not happened quickly enough. Last year, several renewable energy project operators were told that connecting their projects to the grid could take between 10 and 15 years. According to John Pettigrew, CEO of National Grid, the queue of green projects has increased by 50 GW to a total of 400 GW in the third quarter of 2023, which far higher than the UK’s existing electricity capacity of 65 GW.
The lack of transmission infrastructure development has dampened the mood of investors looking to develop renewable energy projects in the UK in recent years. However, with the new Labour Party having already adopted several green energy plans in its first month in government, investment sentiment is likely to improve in the coming years.
Last November, National Grid announced it would invest more than $52 billion in the UK and US as part of its five-year plan to 2026. That’s almost $2.5 billion more than announced in May. The regulator stressed the need for “fundamental reform” of Britain’s electricity grid planning to address some of its key transmission issues. Ofgem is now expected to approve a record number of power cable projects over the next few years aimed at upgrading the grid to carry more renewable electricity. This will support job creation across the country, improve energy security and help the UK meet its climate goals.
The new Labour government has ambitious plans to accelerate the UK’s green transition. This comes after years of stagnation that left experts doubting whether the country can deliver on its climate promises. The government now aims to build a net-zero electricity system by 2030. This will be achieved by doubling the country’s onshore wind capacity, tripling solar power and quadrupling offshore wind capacity.
However, getting these projects off the ground is not always easy, with towns and rural communities across the country battling the ‘not in my backyard’ backlash. Although there is an intensive public consultation, the government has made it clear that developing renewable energy capacity in the UK is its top priority. For example, discussions are currently taking place to determine whether large wind farms classified as “nationally significant infrastructure projects” that would enable them to get the green light from Energy Minister Ed Miliband, without the approval of the local councils.
An industry source explained“As a country, we are trying to put as much of this new transmission line offshore as possible.” The source added: “But those cables have to come ashore somewhere, and the infrastructure has to be in place to get the power from the coast into people’s homes. That means substations, power poles and cables. It means more power lines and poles. And people don’t seem to be prepared for the fact that this infrastructure is both very necessary and very visible.”
After a month of bold moves by the new Labour government, backed by Ofgem, there is finally renewed optimism about the potential of the UK’s renewable energy sector. Major investments by National Grid and SSE are set to support the modernisation of the UK’s electricity grid and help transport vast amounts of green energy to homes across the country. It’s an indicator of what’s to come as the UK follows in the footsteps of the US and other European powers in pursuing a green transition.
By Felicity Bradstock for Oilprice.com
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