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Ofgem Approves £2 Billion Subsea Cable to Reduce UK Energy Bills

by Krystal

A £2 billion subsea and underground cable project, set to power millions of UK homes, has received final funding approval.

The 196-kilometer-long Eastern Green Link 1 (EGL1) cable will run primarily beneath the North Sea. It is expected to enhance the UK’s energy security and lower annual customer bills by £870 million.

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The National Energy System Operator (NESO) identified EGL1 as vital to achieving the UK’s 2030 clean energy targets. The cable will transfer electricity from North Sea wind farms in East Lothian to County Durham.

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This project is part of a broader strategy to maximize domestic wind energy and reduce reliance on volatile gas markets.

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Communities along the cable’s route in Scotland and northeast England will benefit from a £7.9 million social value fund.

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Ofgem, the UK energy regulator, streamlined the project’s funding process through its Accelerated Strategic Transmission Investment (ASTI) framework. This saved £43 million and allowed developers early access to funds, speeding up material procurement and project delivery.

Beatrice Filkin, Ofgem’s director of major projects, emphasized the benefits of the initiative:
“This means customers can enjoy the advantages of abundant homegrown wind energy sooner while being better protected from unpredictable imported gas prices.”

Filkin also highlighted Ofgem’s cost-efficiency measures:

“We’ve implemented safeguards to ensure maximum benefits for customers.”

EGL1 aligns with government policies targeting a carbon-neutral power system by 2030. This commitment has driven demand for clean energy infrastructure across the UK.

The project joins 25 others under Ofgem’s ASTI framework, designed to modernize the energy system while keeping costs under control.

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