Green energy cable gets go-ahead

£1.2bn project for undersea cable will connect more renewable energy to grid

Plans for a £1.2 billion undersea electricity cable that will help boost the country's renewable energy capacity have been given the go-ahead.

The project from SSE aims to deliver 1.2GW of renewable electricity generation through the link between Caithness and Moray in Scotland.

The scheme, which is due to be completed in 2018, represents the largest investment in the region's electricity network since the hydro era of the 1950s.

Ofgem said although it has approved the project, it is studying the financial details of the scheme. If it finds the project can be built for less, it will lower the amount of funding allowed to complete the link.

SSE unit Scottish Hydro Electricity Transmission (SHE) is working on the scheme, which will connect planned wind farm projects in the area to the country's energy grid.

The regulator said it will consult on the project's funding proposals in the autumn.

Ofgem senior partner for transmission Martin Crouch said: "This is a major step forward for an essential upgrade to the high voltage grid so that more renewable energy can connect to the networks.”

The regulator has also moved to cut charges for green energy generators. Ofgem said that from 1 April 2016 charges to suppliers from the transmission operator, National Grid, will more closely reflect their use of the network.

The watchdog said this will benefit suppliers of wind or solar energy who do not constantly use the grid.