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Plans to revamp the UK's ageing grid networks and accommodate increasing amounts of renewable energy have been given a major boost by Ofgem and National Grid.
Ofgem yesterday unveiled a list of firms competing to own and operate high-voltage transmission links for some of the UK's largest offshore wind farms under construction, in a bid to ramp up investment in the emerging transmission sector.
Balfour Beatty, Blue Transmission, Cheung Kong Infrastructure, Green Energy Transmission, Mitsubishi, National Grid Offshore, Transmission Capital Partners and the Ventran Consortium will now battle to own and operate the links for Gwynt y Môr, Lincs and phase one of the London Array offshore wind farms - generating more than 1.4GW of wind power.
The final winners are slated to be announced in the summer, after a shortlist is revealed in spring.
The competition forms the first stage of Ofgem E-Serve's latest tender round in the GB offshore transmission regime, which combined with the second stage, is hoped to drive £1.9bn of transmission links to connect 2.8 GW of offshore wind farms.
Tenders for the second tranche of wind farms - involving Humber Gateway, West of Duddon Sands and Race Bank - are expected to start next spring.
The news comes as National Grid unveiled plans to install a giant £700m sub-sea cable costing to help Scotland export renewable energy to England and Wales.
A National Grid spokeswoman told BusinessGreen that construction work to install the 2GW cable could start by 2013. However, the company must first obtain planning approval for two onshore substations in Hunterston, North Ayrshire and Connah's Quay in Flintshire.
Project director Andy Hiorns described the project as "incredibly important" in helping the UK meet its climate change commitments. The cable was branded necessary in a report by the government-backed Electricity Networks Strategy Group (ENSG).
National Grid is also consulting with local people as 40km of the wire is earmarked to travel onshore across the Wirral. It already has permission to bury the cable onshore, but National Grid said it is keen to engage further with local communities.
Concerns have already been raised that the cable will disrupt areas of special scientific interest and a green flag coastal park.
Ian Lewis, Conservative councillor for Moreton and Leasowe told the BBC: "Any work that they do must not damage the environment, either immediately here at the coast at Leasowe, which is a site of special scientific interest and a green flag coastal park, and also the disruption to Wirral residents when they start to dig up the length of the borough."