Ofgem approved the EGL2 project, a cross-border HVDC link between Peterhead in Scotland and Drax in Yorkshire, to be built as a National Grid and SSEN Transmission joint venture and scheduled to be operational by 2029.
Investors in National Grid (LSE:NG) and SSE Plc (LSE:SSE) each saw their shares trade up 1% on Tuesday, rising to 989p and 1,896p respectively, after the British authorities greenlighted a so-called “electric superhighway” project.
High volumes of renewable power will be transmitted between Scotland and England.
Ofgem approved the project, called the Eastern Green Link 2 (EGL2), which will be a subsea electricity transmission project connecting Peterhead in Scotland with Drax in Yorkshire.
Its predicted to cost £4.3 billion, after adjusting for inflation, and is being described as the largest ever single investment in the UK's electricity transmission infrastructure.
The project will comprise a 507-kilometer-long high-voltage direct current (HVDC) cable capable of carrying enough renewable electricity to power two million homes.
EGL2 will be built as a joint venture between National Grid and SSEN Transmission and its scheduled to be operational by 2029, as part of the UK's effort to modernise its electricity grid and support net-zero targets.
It is one of 26 critical energy projects said to be in the process of being fast-tracked by Ofgem.
