U.K. Energy Regulator Studies $315 Million Grid Upgrade

U.K. energy regulator Ofgem is studying a proposal by a SSE Plc (SSE) unit to invest 205 million pounds ($315 million) upgrading power transmission links in Scotland to accommodate more renewable energy plants.

The funding will enable SHE Transmission Plc to build two subsea cables that reinforce the electricity link between the Kintyre peninsula in western Scotland and the rest of the region’s transmission system, Ofgem said today in a statement.

The proposal from the British utility supports a government effort to add renewable energy generation shoring up power supplies while curbing pollution. The projects, often wind farms or hydroplants in remote places, require upgraded transmission infrastructure to bring their power to consumers.

The network upgrades will deliver about 260 megawatts of extra transmission capacity when completed in 2016, according to documents on Ofgem’s website. The plan will also upgrade existing overhead lines between Crossaig and Carradale and build a new substation at Crossaig, according to Ofgem.

Ofgem started a consultation on the proposal today, with a funding decision expected in autumn. The funding would be recovered from customers on their bills. The consultation is part of Ofgem’s strategic wider works program for major transmission projects.

To contact the reporter on this story: Sally Bakewell in London at sbakewell1@bloomberg.net

To contact the editor responsible for this story: Randall Hackley at rhackley@bloomberg.net

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