Scotland to be ‘rewired’ in next decade, generating 1,500 new jobs

A £7 BILLION investment to upgrade high-voltage power cabling across Scotland is to be fast-tracked by energy watchdog Ofgem.

ScottishPower and SSE now have the green light to upgrade the ageing network, creating 1,500 jobs.

Ofgem said the infrastructure investment would help Scotland reach its green energy renewable targets and boost the country’s security of supply.

ScottishPower described the plans as “the most important upgrades to the electricity network in central and southern Scotland for more than 50 years”.

The regulator fast-tracked the plan yesterday because it is satisfied the upgrade will provide good value for customers.

Ofgem chief executive Alistair Buchanan said the decision marked “a very significant moment” in guaranteeing security of supply, hitting renewable targets and cutting red tape.

In England and Wales the electricity transmission network is run by National Grid, but in Scotland the major power supply firms ScottishPower and SSE are also responsible for the electricity network.

ScottishPower’s SP Transmission Ltd (SPTL) delivers power to south and central Scotland, while SSE’s Scottish Hydro Electric Transmission Ltd (SHETL) covers the region north of Perth.

Ofgem said a key element of the plans was the connection of offshore and onshore wind generation in Scotland of about 11GW – enough to power more than six million homes.

The proposals would also increase the export capacity from Scotland to England from 3.3GW to close to 7GW by 2021.

This would involve the replacement of about 500 miles of overhead line and the renewal and replacement of more than 15 per cent of existing sub- stations. The investment would also bring £2bn in reduced carbon emissions, equivalent to 45 million tonnes of CO2.

ScottishPower Energy Networks chief executive Frank Mitchell said: “Although the network has performed reliably and is capable of supporting the current system, our planned investments will see widespread modernisation and a fit-for- purpose network capable of supporting a 21st-century electricity system.”

The two power giants plan to upgrade the network over the next decade.

SSE managing director Mark Mathieson said: “The fast-tracking of SHETL’s business plan means we can now focus on delivery, confident that the required funding is in place; a clear mechanism has been created to deal with the uncertainties of investing over this time frame; and an overall positive investment climate has been established.”

Energy minister Fergus Ewing said: “The scale of investment is significant and I expect the companies to deliver the essential grid upgrades needed by a future grid network that connects and transports our outstanding energy potential to homes and businesses across Scotland, and from Scotland to other markets.”

Tom Greatrex, Labour’s shadow energy minister, said “This highlights the importance of a single energy market. By pooling the potential renewable sources of energy, all across Britain benefit by being able to use cleaner and greener electricity.”

The watchdog estimated the cost to consumers’ bills would be 35p a year from 2013 to 2021.