Construction is set to begin on the UK's largest subsea connection project following the final approval on the costs of delivery by energy regulator, Ofgem.

The Eastern Green Link 2 (EGL2) project will see the delivery of a 525kV 2GW subsea connection between Peterhead in the north-east of Scotland and Drax on the east coast of England.

Ofgem's final decision on the project assessment for the 500km+ high voltage direct current (HVDC) connection is the key final approval in the regulatory process and allows construction to get underway later this year, with the connection due to be operational in 2029.

And in a separate development that underlines the progress being made on the project, Aberdeenshire Council has recently granted final planning approval for a new HVDC converter station to be built near Peterhead, with construction to begin at the site near Boddam later this year.

Delivered as a joint venture by National Grid and SSEN Transmission, EGL2 will include the longest HVDC subsea cable in the UK and is the UK's single largest electricity transmission project ever, providing enough electricity to power two million homes.

At a total expected nominal investment of around £4.3bn, it is the single largest-ever investment in electricity transmission infrastructure in Great Britain and one of the most significant, strategic investments in energy infrastructure the country has seen in recent years.

Contracts have now been awarded to deliver the project, including with Prysmian Group to supply around 1,000km of cable and with Hitachi Energy and BAM for the supply of converter stations at either end of the subsea cable.

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EGL2 is part of SSEN Transmission's Pathway to 2030 programme, a £20bn investment to upgrade the electricity network in the north of Scotland to unlock the country's renewable energy resources in support of national net zero and energy security targets. It is also part of National Grid's The Great Grid Upgrade, 17 major infrastructure projects that will update the grid network boosting energy security, affordability and helping England and Wales become more self-sufficient.

Ricky Saez, EGL2 Project Director, commented: "Ofgem's decision to issue its final project assessment decision is a major milestone, and testament to the hard work of our project teams within SSEN Transmission and NGET in getting us to the stage where construction can begin later this year.

"We're also delighted that Aberdeenshire Council has granted approval for our HVDC converter station near Peterhead, and we'd like to thank the council for their efficient handling of our applications and for their recognition of the importance of the project which will support hundreds of skilled jobs during the construction phase and thousands more across the wider economy.

"Not only will EGL2 will play a major role in bolstering energy security and contributing to net zero targets, it will also provide a lasting legacy in local communities where our teams are already supporting local environmental initiatives that enhance community wellbeing.

"This is a commitment that will continue throughout the lifetime of the project and beyond, as we aim to be a positive force in the communities we operate."

Sandy Mactaggart, Director of Offshore Delivery for SSEN Transmission, said: "With HVDC technology set to play a leading role in the energy transition, the delivery of EGL2 will build on our significant expertise demonstrated through the success of our Caithness-Moray HVDC link, and the ongoing delivery of our Shetland HVDC link.

"We now look forward to working with our partners in NGET on construction and delivery of this important project, and on future projects including the proposed Eastern Green Link 3 where work is already underway to secure the supply chain."

Zac Richardson, Offshore Delivery Director for National Grid said: "Ofgem's funding decision is a major milestone for EGL2, the single largest-ever investment in a UK electricity transmission infrastructure project. We now look forward to delivering supply chain contracts, jobs, and skills, and helping to fulfil the government's ambition for the UK to be a clean energy superpower."

Jonathan Brearley, Ofgem CEO, said: "Ofgem is fully committed to supporting the government to meet its aims of getting clean power by 2030. Today's announcement is a further step in putting the regulatory systems and processes in place to speed up network regulation to achieve its aim.

"Accelerated Strategic Transmission Investment (ASTI) accelerates approval times for projects such as Eastern Green Link 2 (EGL2) by up to two years. However, streamlining the process does not mean blank cheques for developers as we are able to step in and make financial adjustments to maximise efficiency and consumer benefit."