Eight Scottish Hydro Electric Transmission projects - Early Construction Funding and proposed licence modification
Summary
Ofgem consults on approving £1.8bn early construction funding for eight Scottish Hydro Electric Transmission projects under the Accelerated Strategic Transmission Investment reopener. The projects include major reinforcements across Scotland's transmission network, with funding recovered through transmission charges before construction completion. Decision expected by summer 2024 following consultation closure on 27 April.
Why it matters
This accelerates transmission investment by allowing SHET to recover costs during construction rather than after completion, shifting financial risk from the company to consumers. The mechanism rewards early action on strategic projects but creates precedent for pre-completion cost recovery across the transmission sector.
Options on the table
Approve Early Construction Funding
Grant early construction funding for all eight SHET projects under the Accelerated Strategic Transmission Investment reopener, allowing cost recovery during construction phase through modified licence conditions. This would enable faster project delivery by removing financing constraints but shifts cost risk from company to consumers.
Questions being asked
Early Construction Funding Assessment
- Do you agree with our assessment of the eight SHET Early Construction Funding applications?
- Do you have any comments on our proposed licence modification?
Key facts
- •Eight SHET projects approved for early construction funding
- •Funding under Accelerated Strategic Transmission Investment reopener
- •Consultation closes 27 April 2024
- •Licence modification to Special Condition 3.41 proposed
Timeline
Areas affected
Related programmes
Memo
Eight Scottish Hydro Electric Transmission projects - Early Construction Funding and proposed licence modification | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Eight Scottish Hydro Electric Transmission projects - Early Construction Funding and proposed licence modification Publication type: Consultation Publication date: 22 March 2024 Closed date: 27 April 2024 Status: Closed (with decision) Topic: Electricity transmission Decision: Eight Scottish Hydro Electric Transmission projects - Early Construction Funding and licence decision Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn This statutory consultation sets out our eight Scottish Hydro Electric Transmission Plc (SHET) Early Construction Funding assessments under the Accelerated Strategic Transmission Investment re-opener and our corresponding proposed modification to Special Condition 3.41 (Appendix 1) of SHET's electricity transmission licence. Respond name James Santos-Mansur Respond email RIIOElectricityTransmission@ofgem.gov.uk Main document Eight SHET projects - ECF and proposed licence modification [PDF, 450.40KB] Response documents Eight Scottish Hydro Electric Transmission projects - Early Construction Funding and proposed licence modification - consultation responses [ZIP, 1.01MB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close