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Scottish subsea link will connect renewables

Energy regulator Ofgem has given the green light for a new subsea link in the north of Scotland that would connect the electricity grid on either side of the Moray Firth.
 
Scottish Hydro Electricity Transmission’s £1.2bn upgrade of the electricity network is expected to connect 1.2 GW of new renewable electricity generation, following its completion in 2018.
 
Ofgem is currently analysing details on the project provided by SHE Transmission to check that the spending, technical and delivery plans for the upgrade offer value for money for consumers. If Ofgem finds that the project could be delivered for less, then it will lower the amount of funding allowed to complete it.
 
Ofgem has also announced changes to the methodology for calculating what generators pay to use the electricity transmission network. The change is being made to better reflect the costs that different generators have on the system. It will come into effect on 1 April 2016.
 
The methodology will retain the locational signal to encourage generators to build as close as possible to where energy demand is. This reduces the need to build costly infrastructure such as electricity pylons, says the regulator. The main update will recognise that renewable generation uses the system less than traditional forms of generation and so imposes lower costs.

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