Scottish Wind Farms to Receive £7.6 Billion to Connect to UK Grid
Posted on: January 25th, 2012 by Tessa Clarke
According to new reports, Ofgem has said that it is very likely to approve a huge investment of £7.6 billion in order to connect new Scottish wind farms and other renewable energy power sources to the UK grid. This huge investment would replace an aging infrastructure and “greatly assist connections to renewable generators” in Scotland.
Ofgem went on to say, on Monday, that it had fast-tracked proposals for infrastructure spending by energy companies ScottishPower and SSE. Overall, the group expects to make a final decision come this April. This decision will come following a consultation.
So this brings up the question: With the UK debt already so high, how is this huge investment going to be paid for? It’s apparent the government cannot afford to shoulder all of it right now. Well, apparently this investment will be paid for through energy bills. It is likely going to add about 35p to a typical household bill each year. This will happen between the years of 2013 and 2021.
Of course, Ofgem says that it is worth it. They said that the proposal would deliver essential upgrades to Scotland’s transmission network at the lowest possible price to the consumer. The energy market has to move forward, and it has to do it at a speed that the average consumer can afford.
There is some other good news that will come out of this. Not only is this project going to replace an aging infrastructure, but it is also going to create some 1,500 jobs. Thus, it is not only helping the energy industry, but the overall economy of the UK as well.
On that same note, the £7.6 billion investment announced on Monday is just the first stage of a new round of investments. It is just a fraction of the money that is going to be spent on grid infrastructure that will take place over the next decade or so.
For example, a £30 billion investment by National Grid is currently in the early sages of the approval process. Of course, this investment has not been fast tracked. More than likely it has not been rushed ahead because of its huge price tag.
ScottishPower said that this investment would enable them to connect offshore and onshore wind farms in Scotland. Overall, this should help bring some 11 gigawatts (GW) of power to the grid. This is the same as being able to power some 6 million homes. It would also increase export capacity from Scotland to England from the current 3.3GW to 7GW by 2021.
