Ofgem approves next phase of funding for 'Beyond 2030' transmission investments
SSEN Transmission welcomes Ofgem's approval of the next phase of regulatory funding for several new, replacement and upgraded transmission infrastructure projects in the north of Scotland that were identified in the (former) Electricity System Operator’s (ESO) second transitional Centralised Strategic Networks Plan, 'Beyond 2030’, published in March 2024.
Alongside reaffirming the need for these investments, Ofgem has confirmed these projects are exempt from consideration of delivery through the onshore early competition model.
Today’s decision is an important step in progressing key pre-construction activities, including development consultation with communities and wider stakeholders alongside early supply chain engagement.
These investments, which are expected to be delivered in the early 2030s, are:
|
ESO 'Beyond 2030' code |
Project description |
| Shetland Hub | A second High Voltage Direct Current (HVDC) subsea link from Shetland, connecting to Coachford (Blackhillock 2) substation. |
| NNNC | A new single 400kV circuit between New Deer and Greens (New Deer 2) substations. This is being taken forward as part of Beauly-Blackhillock-New Deer-Peterhead 400kV ASTI project (BPNC output). |
| DSUP | A new 400kV double circuit between Dounreay, Thurso and Banniskirk (Spittal 2), with new 400kV substations at Dounreay and Thurso. |
| BKUP | Rebuild the existing Blackhillock-Kintore 275kV double circuit to 400kV with a new 400kV substation required along its route. |
| PKUP |
Increase the capacity of the planned Peterhead to Longside (Peterhead 2) 400kV double circuit with a higher capacity 400kV double circuit; upgrade the existing Peterhead-Persley-Kintore 275kV double circuit to 400kV including a new substation along its route; and install a higher capacity conductor on sections of the existing Kintore-Alyth-Kincardine 400kV double circuit. |
SSEN Transmission recently submitted its RIIO-T3 Business Plan to Ofgem, covering the period from April 2026 to March 2031, which referenced the potential need for these future investments.
The timing and progression of these investments will require an appropriate regulatory framework, in particular an investible financial framework, alongside securing all planning approvals and securing the supply chain.
They will also be subject to extensive public consultation to help inform the development of these new and upgraded network infrastructure requirements.
Rob McDonald, Managing Director of SSEN Transmission, said:
“We welcome Ofgem's approval of the next phase of regulatory funding for all the ’Delivery Track’ strategic transmission reinforcements in the north of Scotland that were set out in the NESO's 'Beyond 2030' plan.
“Today’s decision is an important milestone in unlocking the funding required to begin key pre-construction activities, including early development consultation and supply chain engagement, and is another important step in our national endeavour to deliver a cleaner, more secure and affordable electricity system for current and future generations.
“We now look forward to working with Ofgem, our supply chain, communities and wider stakeholders to inform the development of these projects in a way that is sensitive to the needs of local people, alongside helping to maximise the jobs and economic opportunities these investments present for people and businesses across the north of Scotland.”
Ofgem's decision can be viewed via the following link: https://www.ofgem.gov.uk/decision/funding-and-approval-framework-onshore-transitional-centralised-strategic-network-plan-2-projects-decision