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IBERDROLA, through its subsidiary ScottishPower Transmission, and National Grid, Great Britain’s transmission system operator,  have today announced the award of a £1bn contract to Siemens and cable manufacturer Prysmian to build the first ever sub-sea electricity link between Scotland and England/Wales.

The major grid upgrade will increase the capacity of electricity flowing between England and Scotland by more than 2,000 megawatts (MW), allowing new renewable energy projects to be developed in Scotland that could power 3 million homes.

Due to be operational by 2016, the 260 mile long high voltage cable link will run from Hunterston in Ayrshire to a landing point in North Wales.  Subject to planning approvals, this new link will be one of the first major upgrades to be delivered as part of ScottishPower’s approved plans.

The link will be the longest high capacity HVDC (High Voltage Direct Current) cable in the world.  It will also be the first sub-sea interconnector ever using DC voltage level of 600 kilovolts (Kv).  This will result in the link electricity capacity being increased and there will be lower transmission losses. It is also bi-directional, allowing electricity to flow north or south according to future supply and demand. This is an essential part of the UK’s strategic energy plan for an integrated electricity network.

Ignacio Galán, Chairman of ScottishPower, said: 

“The HVDC link is a major project in the context of a vital upgrading of the UK electricity grid over the coming years, with the electricity grid between Scotland and England already running close to maximum capacity. The additional capacity from this link will provide a significant boost to renewable energy projects being developed in Scotland in order to bring clean energy to consumers throughout the country and at the same time help meet carbon reduction targets.

“We are fully committed to playing our part in the government’s planned infrastructure development programme, and expect to invest a total of £2.6 billion between 2013-2021 on upgrading our transmission network in the UK. Overall, we are projecting investments totalling £12 billion in the UK over the course of this decade, including major offshore wind projects around the country.”

Frank Mitchell CEO of SP Energy Networks said:

“This project has been under development for over 3 years and the deployment of this technology at such a large scale is leading edge. It will create a benchmark for future projects both in the UK and globally and will help connect existing renewable projects that are waiting to be linked into the grid.”

Last week energy regulator Ofgem fast tracked ScottishPower’s plans to invest £2.6 bn in the transmission network between 2013 and 2021. The investments will deliver the most important upgrades to the electricity network in central and southern Scotland for more than 50 years. The company’s proposals are designed to help achieve European carbon reduction targets and provide a platform for further innovation.

Also, Nick Winser, Executive Director at National Grid said:

“This link will have a vital role of play in meeting both the country’s energy needs and helping to address the problem of climate change. We are investing in an innovative solution using the most advanced technology. As a result, the benefits for consumers and electricity generators in being able to transport power in the most efficient way will be felt for years to come”.

Over £2.6 billion will be invested between 2013 and 2021

ScottishPower recently reached agreement with energy regulator Ofgem to fund an investment plan totalling £2.6 billion pounds over the 8-year period from 2013 to 2021 that will see the creation of up to 1,500 jobs in Scotland.  The company’s plans have been fast tracked for approval by Ofgem, who have agreed a 4.5% rate of return on investment over the period.

Under Ofgem’s RIIO T1 process, ScottishPower recently submitted a detailed plan outlining its investment priorities up to 2021 in order to deliver the most important upgrades to the electricity network in central and southern Scotland for more than 50 years. The company’s proposals are designed to help achieve European carbon reduction targets and provide a platform for further innovation. A key element of the plans is the connection of offshore and onshore wind generation in Scotland of around 11 GW - enough to power over 6 million homes.

The £2.6 billion investment will deliver: