European Investment Bank backs Scottish electricity transmission link

Funding will be used to improve connections between renewable energy schemes in northern Scotland and the power network

The European Investment Bank is to provide £500 million to support a major reinforcement of the electricity transmission network in the north of Scotland to improve connections between wind, wave and tidal renewable energy schemes and the national power network.

The investment represents the largest investment in the electricity network in the north of Scotland for 60 years and includes a new 1200MW subsea cable between Spittal in Caithness and Blackhillock in Moray.

The long-term European Investment Bank loan will support nearly £1.2 billion of overall investment in the electricity transmission network in the north of Scotland by Scottish Hydro Electric Transmission, a wholly-owned subsidiary of SSE. The first part of the loan, totalling £300 million, was signed this week and the remainder is expected to be signed next year as the project progresses.

Jonathan Taylor, European Investment Bank vice-president, said: “We are pleased to support this essential investment by Scottish Hydro Electric Transmission that will ensure more efficient transmission of green energy, enable increased use of renewable power in Scotland and secure energy supply to the Highlands and Scotland’s cities.”

In the past decade the European Investment Bank has provided more than £10 billion for investment in energy infrastructure across the UK including renewable energy schemes, national transmission networks and regional power distribution, as well as inter-connectors to Ireland, France and the Netherlands.