National Grid PLC (LSE:NG.) has received UK regulatory approval for its LionLink and Nautilus electricity interconnections (Offshore Hybrid Assets) to connect gird networks and offshore wind farms based in Dutch and Belgian territorial waters.
LionLink is being developed with Dutch transmission system operator, TenneT and Nautilus is being developed with Belgian transmission operator, Elia.
Should they proceed, the projects would have a combined capacity of 3.2 GW and would significantly increase interconnector capacity, sid NG, adding the two projects are forecast to deliver a combined £ 674 million in benefits to consumers in the first ten years of their operations.
Ben Wilson, President of National Grid Ventures said: “Ofgem’s approval of LionLink and Nautilus’ Initial Project Assessment is welcome news and an important step towards having the regulatory certainty we need to build these projects.
“Community and stakeholder feedback has been essential to the evolution of Nautilus.
“We have always advocated for the Isle of Grain as the best location for Nautilus given it’s already a major hub for energy infrastructure and has the potential to offer the shortest offshore cable route to Belgium.
“Now that Ofgem has approved Nautilus, we will continue to develop the project at Grain and look forward to engaging the community on our plans during future consultation.”
Manon van Beek, CEO of TenneT added: “LionLink is the first step towards future offshore hubs configured in a meshed offshore DC grid. This hybrid interconnector supports decarbonisation and energy independence/transition and strengthens British, Dutch and European security of supply.
Ofgem also gave the go-ahead for new electricity links between Britain and the island of Ireland having originally rejected the projects over concerns about costs to consumers.
However, its final decision said that was outweighed by improving the security of supply.
In total, Ofgem approved five interconnection projects which it said will add between £2 to £5 a year on individual consumer electricity bills in Great Britain over the years 2030 to 2055.
The approval means the projects qualify for Ofgem’s 'cap and floor’ regime.