Ofgem Approves New Electricity Links Between Scotland, Northern Ireland, and Ireland – Scottish Business News

The UK energy regulator, Ofgem, has given the green light for two new electricity interconnection projects between Great Britain and the island of Ireland. One of the projects will link Scotland with Northern Ireland, while the other will connect Wales with the Republic of Ireland.

Initially, Ofgem had rejected these projects due to concerns about the potential cost impact on consumers in Great Britain. However, after further review, the regulator concluded that the benefits of enhancing energy security outweighed the cost concerns.

Akshay Kaul, Director General for Infrastructure at Ofgem, told BBC News, “We’ve carefully assessed all the proposed projects and only approved those ones which deliver for consumers in terms of value, viability and energy security.”

Costs and Consumer Impact

Ofgem has approved a total of five interconnection projects, which it estimates will add between £2 to £5 per year to individual electricity bills in Great Britain from 2030 to 2055. These projects are now eligible for Ofgem’s ‘cap and floor’ regime, which guarantees a minimum return (floor) and limits potential profits (cap) for developers over a 25-year period.

The Scotland-Northern Ireland link, known as LirIC, is being developed by Transmission Investment. The project is expected to provide up to 700 MW of capacity between the Irish Single Electricity Market and Great Britain’s wholesale electricity market.Keith Morrison, Project Director for LirIC, expressed his satisfaction with Ofgem’s decision: “Transmission Investment are pleased with Ofgem’s announcement today and its recognition of the benefits that LirIC will bring to consumers in Great Britain and Northern Ireland. In the coming months we anticipate more important milestones including the completion of further regulatory licensing requirements.”

Next Steps

While both projects have cleared this regulatory hurdle, they still face additional planning and regulatory approvals before construction can begin. However, Ofgem’s approval makes them more likely to proceed.

An existing 500 MW interconnector between Scotland and Northern Ireland has been operated by Mutual Energy since 2001. A second 500 MW link between Wales and the Republic of Ireland, known as Greenlink, is also nearing completion and is expected to be operational soon.

These new interconnectors are part of a broader strategy to improve energy security across the UK and Ireland by increasing capacity and ensuring more stable electricity supplies.