Ofgem Approves Early Investment for Major Clean Power Transmission Projects

Three major projects designed to strengthen Great Britain’s energy security and clean power ambitions have taken a significant step forward after Ofgem approved updated delivery dates and early investment. 

The regulator’s decision covers Eastern Green Link 3 (EGL3), Eastern Green Link 4 (EGL4) and the Grimsby to Walpole Network Connection (GWNC), each of which will play a key part in transporting offshore wind power and reducing costs for consumers.

EGL3 and EGL4 are proposed subsea high-voltage direct current (HVDC) cables, each providing 2GW of capacity to carry electricity from Scotland to England. GWNC is a new 400kV onshore link between Grimsby and Walpole in Lincolnshire, designed to integrate offshore wind and other generation sources into the grid. 

Together, the projects will expand transmission capacity, reduce payments to wind farms to curtail generation when grid capacity is insufficient, and deliver more homegrown clean power to consumers.

A cost-benefit analysis by grid operator NESO indicated that the redesigned projects are expected to deliver £3–6 billion in consumer benefits compared with the original network design.

Ofgem has set new target dates of December 2033 for GWNC and August 2034 for EGL3 and EGL4, with transmission operators incentivised to deliver earlier. Late delivery will incur significant daily penalties.

The regulator approved amendments to the scope of the projects, including forecast costs and design changes aimed at reducing environmental and community impact. 

Notably, the new designs avoid The Wash, a sensitive coastal wetland, and propose around 130km of underground onshore cable to reduce landscape intrusion. These changes, Ofgem said, will ensure additional renewable generation can be connected while minimising ecological disturbance.

Ofgem also approved early construction and pre-construction funding for EGL3 and EGL4, enabling strategic land purchases, surveys, design work and procurement of key components. 

“Today’s decision puts these projects in a prime position to compete in the global race for sought-after components such as HVDC cables and work towards seeking planning approval,” said Ofgem’s Director of Major Projects, Beatrice Filkin. “Through intelligent use of early investment and setting realistic but ambitious timescales, we are helping shield consumers from unnecessary costs”.

She added that Ofgem’s processes ensure unspent funds are returned to consumers if projects are altered, cancelled or refused permission, and that transmission operators must demonstrate clear benefits before costs can be passed on to bill payers.

The projects form part of Ofgem’s Accelerated Strategic Transmission Investment (ASTI) framework, launched in 2022 to fast-track 26 strategically important electricity transmission projects. 

ASTI aims to streamline approvals while protecting consumers, ensuring the infrastructure needed for clean power is delivered as quickly as possible. By expanding transmission capacity, the projects will help achieve government decarbonisation targets, reduce reliance on volatile international gas markets and cut constraint costs when renewable generation exceeds grid capacity.

Once operational, EGL3 and EGL4 will connect Scotland’s offshore wind resources to England via converter stations and subsea cables. Additionally, GWNC will reinforce the grid in Lincolnshire to accommodate new sources of electricity including solar, gas-fired generation, interconnectors and battery storage.

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