Ofgem has approved the next phase of regulatory funding for several new, replacement and upgraded transmission infrastructure projects in the north of Scotland. This is welcomed news, especially for SSEN Transmission, our 75%-owned subsidiary electricity transmission business.
Following this transmission investment decision, key pre-construction activities, including development consultation with communities and wider stakeholders, can progress. This will be alongside engagement with our supply chain.
ESO’s Centralised Strategic Networks Plan ‘Beyond 2030’
The former Electricity System Operator (ESO) identified investments in its second transitional Centralised Strategic Networks Plan, 'Beyond 2030’, published in March 2024.
The table below outlines the investments expected to be delivered in the early 2030s.
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. |
Delivering SSEN Transmission’s Beyond 2030 projects
SSEN Transmission’s recent RIIO-T3 business plan to Ofgem referenced the potential need for these future investments. To progress these investments, an appropriate regulatory framework will be required. An investible financial framework will be key, in addition to securing all planning approvals and the supply chain. The investments will also be subject to extensive public consultation. The consultation will help inform the development of the new and upgraded network infrastructure requirements.
Quote from Rob McDonald, Managing Director of SSEN Transmission
“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 also confirmed these transmission projects are exempt from consideration of delivery through the onshore early competition model.
Find out more about Ofgem's decision on the Ofgem website.