Electric ‘superhighway' delayed in blow to Miliband's net zero plans
Eastern Green Link 1 risks missing its target completion date because of global equipment shortages. The project involves a 120-mile cable being built between Scotland and north-east England that is capable of transmitting enough power for 2m homes.
The upgrade is meant to ease grid bottlenecks and is seen as one of the most vital enablers of plans laid out by Mr Miliband, the Energy Secretary, for a 'clean' power system in 2030.
Without it, officials have warned that the cost of 'constraint' payments to wind farm owners – where turbines are paid to switch off because the grid is too congested – risk ballooning by almost £900m per year.
The project has been granted fast-track status by Ofgem, the energy regulator, and given a target delivery of Dec 31 2028 at the latest.
After that point, developers SP Energy Networks and National Grid Electricity Transmission would face fines.
However, the companies have warned that the scheme has been hit by delays and are pleading for relief from fines until at least April 2030 – suggesting there is a risk the project will be severely late.
SP Energy and National Grid blamed global shortages of key pieces of equipment, including high-voltage cables and converters, which countries around the world are racing to buy as part of the switch to green energy.
That has led to years-long wait times, with manufacturers racing to expand their capacity but struggling to keep up with demand.
The problem highlights the risk posed to Mr Miliband's clean power plans by a lack of available parts.
Kathryn Porter, an independent energy analyst, said: 'To achieve the Clean Power 2030 target we must build twice as much grid infrastructure in the next five years as we delivered in the past decade.
'But supply chain constraints make this an unachievable goal, particularly when we note that the lead time for some transformers is now four years.'
In November, the National Energy System Operator (Neso) – the quango responsible for managing the operation of Britain's power grid – highlighted Eastern Green Link 1 as one of four upgrades that would have 'the highest impact on the country's ability' to hit Mr Miliband's target.
It has warned that some 80 infrastructure upgrades must all be delivered by the end of this decade in order for Mr Miliband's plan to succeed.
At the time, the Neso said Eastern Green Link 1 was expected to be complete by 2030. However, the Government said the latest estimate was April 2029.
According to Ofgem, the project is running at least six months later than previously expected.
The regulator has said it is 'minded' to reject the application for relief from fines, arguing that SP Energy Networks and National Grid Electricity Transmission knew about global supply chain issues and that the delays are the companies' own fault.
A Department for Energy Security and Net Zero spokesman said: 'Our Clean Power Action Plan sets out how we will deliver a new era of clean electricity, with the most ambitious reforms to the country's energy system in a generation.
'As shown by the National Energy System Operator's independent report, clean power by 2030 is achievable and will deliver a more secure energy system, which could see a lower cost of electricity and lower bills.
'We support Ofgem in ensuring projects are delivered by 2030, to protect bill payers on our journey to clean home-grown power.'
The spokesman added that state-owned Great British Energy and the National Wealth Fund would invest in UK supply chains.
They also pointed to a £350m investment by Sumitomo Electric Industries in a new high-voltage cable manufacturing facility at the Port of Nigg, Highland, Scotland.
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