Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 26 November 2024 to Question 16211 on National Grid: Costs of the Western and Eastern Links, whether (a) he and (b) Ofgem is able to provide the estimate requested.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The analysis of an onshore reinforcement (i.e. overhead pylons) for Western Green Link was conducted 16 years ago and cost estimates for alternative options are not available.
As the option of an onshore reinforcement for Eastern Green Link 1&2 did not meet the timeline for delivery, it was not progressed to the cost benefit analysis stage. As such, an estimate was not made for that option. Analysis of further stages of Eastern Green Link will be available in the future.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he will make an estimate of the cost of building (a) the Western link and (b) all current and future stages of the Eastern Link if that route was primarily overland via pylons instead of offshore cabling.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Ofgem reviews proposed project costs and ensures that network companies spend efficiently. Electricity network reinforcements are only approved where they are in the interests of consumers and help reduce system costs.
Ofgem identified a net lifetime benefit for Western Link, due to lower project and constraint costs compared to alternatives. [1] The system operator set out the project need case in 2007.
Ofgem’s analysis [2]of Eastern Green Link 1 and 2, noted that onshore reinforcements would not achieve required delivery dates resulting in increased constraint costs.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 8 October to Question 5072 on National Grid: Costs, what estimate he has made of the potential impact on consumer energy bills of the lifetime costs of delivering the coordinated offshore design set out in the Offshore Coordination Support Scheme for East Anglia.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
As part of the feasibility work for the coordination proposal explored through the Offshore Coordination Support Scheme, independent analysis by Arup and the Electricity System Operator (now the National Energy System Operator) identified an increase in development costs by up to £890 million, and additional constraint costs of greater than £1.5 billion over the project lifetime. While these costs would be expected to be recovered from consumer electricity bills, the interactions with other bill components mean there are uncertainties preventing a precise estimate of the impact.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 10 September 2024 to Question 4389 on National Grid: Costs, whether (a) he and (b) Ofgem is able to provide the estimate requested.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
New network infrastructure is essential to meet the rising demand for electricity and connect new renewable generation.
Ofgem estimates that the Western Link and Eastern Green Link will increase consumer bills by an average of £6.50 per annum over a 60-year period, taking inflation into account.
Ofgem approves electricity network build options that are efficient and provide an overall benefit to the consumer. Please see Ofgem’s cost benefit analysis of Western Link[1] and Eastern Green Link[2] for more details.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he will make an estimate of the potential impact on consumer energy bills of the total lifetime cost of delivering (a) the Western Link and (b) all current and future stages of the Eastern Green Link offshore cabling.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Electricity network reinforcements are only approved where they are in the interests of consumers and help reduce overall system costs. For both the Western Link and the Eastern Green Link projects, decisions to proceed were based on robust cost-benefit analyses, approved by Ofgem. Ofgem review proposed project costs and ensure that network companies spend efficiently, protecting consumers from unduly high costs.
These reinforcements are designed to help balance the GB grid, bringing renewable generation in Scotland to demand centres further south. While they have significant build costs, they will help reduce balancing costs, bringing overall savings to consumers.