OSLO (Reuters) - British energy regulator Ofgem has granted SSEN Transmission, part of energy company SSE (LON:SSE) plc , provisional approval to construct a two-gigawatt subsea cable between Scotland and England, the company said on Wednesday.
The subsea link, a joint venture with National Grid (LON:NG) Electricity Transmission (NGET), will have the capacity to power over 2 million homes, with investments estimated at around 2.1 billion pounds ($2.76 billion), SSE said.
It will run from Peterhead in the northeast of Scotland to Drax in Yorkshire, England, and provide essential reinforcements to the British energy system, the firm said.
"These links are critical to our net zero ambitions, delivering UK and Scottish Government renewable targets and reducing our dependence on volatile wholesale gas markets by supporting indigenous low carbon electricity generation," Rob McDonald, managing director of SSEN Transmission, said in a statement.
The main construction work is due to begin in early 2025, and startup is targeted for 2029, SSE said.
Separately, Ofgem has also provisionally approved plans for a separate 2-GW link from Torness in southeast Scotland to Hawthorn Pit in northeast England, SSE said.
The latter is planned by NGET together with Scottish Power's SP Energy Networks, a subsidiary Spain's Iberdrola (MC:IBE)'s. It has a start-up target of 2027.
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