ScottishPower’s Proposals For £2.6 Billion Transmission Grid Investments Fast Tracked For Approval By Ofgem


ScottishPower has successfully reached agreement with the energy regulator Ofgem to fund an investment plan totalling £2.6 billion pounds over the 8-year period from 2013 to 2021 that will see the creation of up to 1,500 jobs in Scotland.  The company’s plans have been fast tracked for approval by Ofgem, who have agreed a 4.5% rate of return on investment over the period.

Under Ofgem’s RIIO T1 process, ScottishPower recently submitted a detailed plan outlining its investment priorities up to 2021 in order to deliver the most important upgrades to the electricity network in central and southern Scotland for more than 50 years. The company’s proposals are designed to help achieve European carbon reduction targets and provide a platform for further innovation. A key element of the plans are the connection of offshore and onshore wind generation in Scotland of around 11 GW - enough to power over 6 million homes.

The £2.6 billion investment will deliver:

  • Creation of up to 1,500 new jobs in the ScottishPower Transmission licence area
  • Connection of offshore and onshore wind generation in Scotland of around 11 GW (enough to power over 6 million homes)
  • Over £2 billion in reduced carbon emissions (equivalent to 45 million tonnes of CO2)
  • Increase in export capacity from Scotland to England from 3.3 GW to close to 7GW by 2021
  • Reduce constraint costs to the UK consumer by £1.7 billion
  • Renewal and replacement of over 15% of our existing substation assets
  • Replacement of around 800 km of overhead line
  • Modernise the network to ensure that the excellent security of supply and reliability presently enjoyed in the SPT area is maintained. 

Frank Mitchell, CEO of ScottishPower Energy Networks, said: “We are pleased to have reached early agreement with Ofgem and believe that this framework will allow us to confidently take forward our recruitment and investment programmes.  This agreement will ensure the best value for consumers, whilst guaranteeing a modern and robust electricity system capable of supporting the UK’s and Scotland’s ambitious carbon reduction targets.

“This will be the most significant investment in electricity infrastructure to have taken place in the last 60 years. We have maintained and managed the existing network assets for more than half a century. 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. Most importantly this investment will create up to 1,500 new jobs and deliver plans to connect enough green energy for 6 million homes.

“Our engagement with Ofgem during the course of this process has been very positive and we have worked effectively together to agree these proposals. The fact that our initial submission is relatively unchanged reflects well on the detail of work that went in to our plans.”

Media information: Simon McMillan 0141 614 4582 / 07753 622 257


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