Eastern Green Link 2 (EGL2) project assessment consultation

`★ Insight ─────────────────────────────────────` This is a case where the source text extraction captured only the Ofgem landing page metadata, not the actual consultation PDF. The memo needs to be built from the analysis summary and domain knowledge about ASTI. Since the consultation is closed with a decision published, the memo serves as a historical record rather than a call to action. `─────────────────────────────────────────────────`

Here's the memo:

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What this is about

Ofgem consulted on its minded-to position for the project assessment of Eastern Green Link 2 (EGL2) under the Accelerated Strategic Transmission Investment (ASTI) framework. EGL2 is a 2GW high-voltage direct current (HVDC) subsea cable connecting the Scottish and English transmission networks — jointly developed by SP Energy Networks (SPEN) and National Grid Electricity Transmission (NGET). The project assessment is the stage at which Ofgem evaluates the cost estimates, delivery plans, and risk allocation before confirming that the project can recover costs through the regulated asset base.

ASTI was introduced to accelerate the build-out of strategic transmission infrastructure identified in the Holistic Network Design (HND). The mechanism allows transmission owners to begin recovering costs from consumers during construction, rather than waiting until the asset is operational. This transfers construction and delivery risk from the transmission owners to electricity consumers: if costs overrun or the project is delayed, consumers bear the carrying cost of capital deployed before the link delivers any system benefit. The trade-off is speed — ASTI bypasses the slower RIIO price control process to get critical north-south transfer capacity built before constraint costs escalate further.

EGL2 is one of the most significant ASTI projects. Scotland has a structural surplus of renewable generation that cannot reach demand centres in England because transmission capacity across the B6 boundary is insufficient. The result is curtailment payments — consumers pay wind generators not to generate — running into billions of pounds annually. EGL2, along with Eastern Green Link 1 and other ASTI links, is intended to reduce this constraint cost by adding 2GW of transfer capacity. The economic case rests on whether the construction cost of the link is lower than the curtailment costs it avoids.

How to respond

This consultation closed on 27 April 2024. Ofgem has published its decision: [Eastern Green Link 2 (EGL2) project assessment decision](https://www.ofgem.gov.uk).

For reference, responses were directed to:

- Contact: James Dunshea - Email: RIIOElectricityTransmission@ofgem.gov.uk

The consultation document (PDF, 333KB) and consultation responses from SSEN Transmission and NGET (PDF, 182KB) were published as subsidiary documents.

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Note: The source text for this item contains only the Ofgem landing page. The full consultation PDF was not extracted. The options and specific questions Ofgem posed are in that PDF. Since the consultation is now closed with a decision published, the decision document will contain the substantive detail on cost allowances, risk-sharing mechanisms, and delivery milestones that Ofgem confirmed.