Latest news with #EasternGreenLink1
Telegraph
26-04-2025
- Business
- Telegraph
Electric ‘superhighway' delayed in blow to Miliband's net zero plans
A £2bn electricity 'superhighway' linking England and Scotland is facing delays in a blow to Ed Miliband's clean power 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.
Yahoo
24-04-2025
- Business
- Yahoo
Glenfarne to acquire four solar assets with battery storage facilities in Chile
Glenfarne, an energy and infrastructure asset manager, has agreed to acquire four utility-scale solar assets and associated battery energy storage system (BESS) facilities in Chile. The acquisition, which involves a subsidiary of Glenfarne, encompasses 588MW of operational solar capacity and 1.61 gigawatt-hours (GWh) of BESS facilities, equivalent to 321MW, currently under construction. The assets, purchased from Metlen Energy & Metals, will increase Glenfarne's capacity to more than 3.1GW, including battery storage across Latin America. Glenfarne CEO and founder Brendan Duval said: 'This acquisition further diversifies Glenfarne's renewable energy portfolio and includes our first foray into both utility-scale solar and battery storage facilities. We will continue to look for strategic opportunities to grow our Chile business that are aligned with the company's mission to realise the world's energy transition.' The transaction is contingent on regulatory approvals, financing conditions and customary adjustments, with the BESS expected to become operational by early 2026. Legal firms Paul Hastings, White & Case and Claro & Cia provided advisory services for the transaction. Metlen CEO Evangelos Mytilineos said: 'This is a landmark transaction for Metlen, as we pave the growth of M Renewables. We identified the potential of Chile's renewables market in 2020 and have managed to successfully overcome market challenges. In doing so, we have developed, structured – commercially and financially – and constructed these projects at the highest standard. 'This transaction reinforces our relationship with Glenfarne across the renewables market but also creates foundations for further enhancing the cooperation in other areas of common interest.' Meanwhile, Metlen is collaborating with GE Vernova's Grid Solutions to construct converter stations for the Eastern Green Link 1, a subsea electric superhighway project led by Iberdrola and National Grid Electricity Transmission, valued at £2.5bn ($3.1bn). "Glenfarne to acquire four solar assets with battery storage facilities in Chile" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
12-04-2025
- Business
- Yahoo
Ofgem may penalise National Grid-SP Energy JV for project delays
UK gas and electricity markets regulator Ofgem is considering imposing penalties on the National Grid Electricity Transmission and Iberdrola's SP Energy Networks joint venture (JV) for delays in the completion of the Eastern Green Link 1 (EGL1) project, as reported by Reuters. The JV requested a 480-day penalty exemption for the delays, citing global supply and capacity issues. However, Ofgem noted these challenges were not present during the EGL1 tender and said that the firms should have planned to manage them. EGL1 is a 2GW 196km long high-voltage direct current (HVDC) link connecting Torness in East Lothian, Scotland, with Hawthorn Pit in County Durham. The project includes a subsea and underground cable system linking Scotland to northeast England. It is vital for the UK's goal of decarbonising its electricity sector by 2030. The multi-directional design of the transmission line will enhance network resilience and once operational, it will power two million homes. In November 2024, Ofgem approved a £2bn ($2.57bn) funding package for the project, which began construction in February 2025. The completion of the project is anticipated for April 2029 - 16 months behind schedule. This delay could result in output delivery incentive penalties, designed to ensure efficient and timely project delivery, amounting to up to 10% of the project's expenditure. If Ofgem's current stance holds, the JV could face penalties until 25 April 2030, extending beyond the current exemption until 31 December 2028. An EGL1 spokesperson stated they would present further evidence on the supply chain issues during Ofgem's consultation period to support their case for exemption. In March 2025, Ofgem relaxed procurement rules, allowing transmission operators to fast-track £4bn in electricity grid investment. "Ofgem may penalise National Grid-SP Energy JV for project delays" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
10-04-2025
- Business
- Reuters
UK energy regulator weighs penalty exemption for National Grid venture
April 10 (Reuters) - Britain's energy regulator Ofgem said on Thursday it was considering whether to reject a penalty exemption application for an electricity transmission joint venture between National Grid (NG.L), opens new tab and SP Transmission. The Eastern Green Link 1 (EGL1) project, being built by Iberdrola's ( opens new tab Scottish Power Energy Networks and National Grid Electricity Transmission, consists of subsea and underground cables linking Scotland to north-east England. Ofgem said the joint venture had requested a 480-day exemption from penalties related to project completion delays, due to global supply chain issues and capacity shortages.
