National Grid and ScottishPower Transmission have today announced the award of a £1bn contract to Siemens and cable manufacturer Prysmian to build the first ever sub-sea electricity link between Scotland and England/Wales.

The major grid upgrade will increase the capacity of electricity flowing between England and Scotland by more than 2,000 megawatts (MW), allowing new renewable energy projects to be developed in Scotland that could power 3 million homes.

The announcement comes shortly after Ofgem agreed to fast track ScottishPower’s plans for transmission network upgrades between 2013 and 2021. The full £2.6bn investment over this period will increase capacity from Scotland to England from 3.3 gigawatts (GW) to close to 7GW by 2021.

Due to be operational by 2016, the 260 mile long high voltage cable link will run from Hunterston in Ayrshire to a landing point on the Wirral peninsula. Subject to planning approvals, this new link will be one of the first major upgrades to be delivered as part of ScottishPower’s approved plans.

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The link will be the longest high capacity HVDC (High Voltage Direct Current) cable in the world. It will also be the first sub-sea interconnector ever using DC voltage level of 600 kilovolts (Kv). This will result in the link electricity capacity being increased and there will be lower transmission losses. It is also bi-directional, allowing electricity to flow north or south according to future supply and demand. This is an essential part of the UK’s strategic energy plan for an integrated electricity network.

Ignacio Galán, Chairman of ScottishPower, said: "The HVDC link is a major project in the context of a vital upgrading of the UK electricity grid over the coming years, with the electricity grid between Scotland and England already running close to maximum capacity. The additional capacity from this link will provide a significant boost to renewable energy projects being developed in Scotland in order to bring clean energy to consumers throughout the country and at the same time help meet carbon reduction targets."

Frank Mitchell CEO of SP Energy Networks said: "This project has been under development for over 3 years and the deployment of this technology at such a large scale is leading edge. It will create a benchmark for future projects both in the UK and globally and will help connect existing renewable projects that are waiting to be linked into the grid."

Last week energy regulator Ofgem fast tracked ScottishPower’s plans to invest £2.6 bn in the transmission network between 2013 and 2021.

(GK/DW)