Consultation on Multi-billion Infrastructure Spend

By Jane Cruickshank / August 9, 2024

OFFGEM are consulting on their proposals for allocating funds to deliver the new transmission system required to carry electricity south to its end user – here’s a Bellman summary of the main issues.

The consultation document is lengthy and, thanks to a fondness for abbreviation, a tough read.

Targets also abound, including:

  • generate 50GW of offshore wind power by 2030
  • decarbonise the the electricity system by 2030 – the 2030 Clean Power Plan
  • reach Net Zero by 2050

To enable these goals, the National Grid designed first one, then a second set of proposals for a new network of onshore and offshore cables. The second is called the “transitional Centralised Strategic Network Plan2” (tCSNP2) – or more prettily – The Pathway to 2030 Holistic Network Design.

This design facilitates the connection of the additional 21 GW of offshore wind produced directly as a result of the ScotWind leasing round. This would see Great Britain having the single largest offshore wind fleet in Europe – and exceeding the offshore wind capacity of the United States of America by the mid 2030s. 

This onshore and offshore network design is reckoned to cost some £58 billion. It would facilitate the connection of up to 86GW of offshore wind generation,3 45GW solar, 22GW batteries and 10GW of H2 electrolysers.

From the consultation document, it is clear National Grid believe speed is of the essence in delivering these proposals – remember those targets.

Most of the projects to be delivered are at a very early stage of development, so there is much uncertainty about the technical solution, design, routes, costs and delivery timelines. However in the words of the consultation document they will, ”be required to be delivered”.

To facilitate this, Offgem have introduced a new ‘Accelerated Strategic Transmission Investment (ASTI) framework’. Meanwhile the Government has a Transmission Acceleration Action Plan. And its Connections Action Plan sets out reforms to reduce the time to connect new projects to the transmission system from five years to six months.

Planning reform is also deemed a key factor, ”to materially reduce the time it currently takes for projects to secure the necessary planning consents…”

The plot thickens

And just when you think you understand the cards being laid on the table, Offgem start to question some of the assumptions made!

They say:

  • there is too much uncertainty in the Pathway to 2030 Holistic Network Design
  • that alternative options should be considered
  • not all licensed options might ultimately connect
  • other renewable sources may emerge ie solar and onshore England wind
  • market arrangements could change ie from national to regional
  • better matching of supply and demand could diminish need for transmission reinforcement

Offgem’s funding framework appears to attempt to allow development of projects by providing ‘the right amount of funding at the right time’. Meanwhile they say they will, ‘Manage uncertainty by not committing too early.’ (Page 30 of document).

Offgem have categorised all the projects into different ‘tracks’ depending on criteria such as level of development, materiality, and interaction with other existing projects. The tracks are “Development”,
“Delivery” or “Small/Medium Sized Project Delivery”. The method of receiving funding varies with each track. Those in the delivery track, for instance, imediately gain 2.5% of the project value.

Impact on Stonehaven

The Bellman is unashamedly parochial. Stonehaven and District Community Council have already expressed concerns at the quality of consultation on the currently proposed new pylon routes. What you see on the map above is in addition to this.

If you look closely you will see a new connection from an offshore windfarm to the proposed Hurlie substation – which would appear to pass through or close to the town.

Meanwhile recommended for the delivery track is the upgrade and/or rebuild of the circuits and equipment between Longside (Peterhead 2), Peterhead, Persley, Kintore, Fetteresso, Alyth, and Kincardine.

And in the development track there is a New Deer 2 – Tealing – Harburn 400kV New Double Circuit – in the pipeline for 2038

If you would like to be kept updated on the Pathway to 2030 projects, you are invited to send an email to: Transmission.Stakeholder.Engagement@sse.com