Decision on New Electricity Link from Scotland to NI Expected Soon
- Ofgem will decide on the LirlC interconnector project, which aims to connect Scotland and Northern Ireland with 700MW capacity.
- The project faces challenges as Ofgem's initial assessment suggests it may increase costs for GB consumers, complicating the regulatory environment.
- Transmission Investment argues that the project will deliver substantial economic benefits and enhance security of supply, while the Department for the Economy is researching interconnectors.
In Northern Ireland, a decision by the GB energy regulator, Ofgem, regarding a new electricity interconnector project between Scotland and Northern Ireland is anticipated later this month. The project, known as LirlC, proposed by Transmission Investment, aims to provide up to 700MW of capacity, enhancing the connection between the Irish Single Electricity Market and the Great Britain wholesale electricity market. This development is crucial as Northern Ireland's electricity system is undergoing significant changes. Ofgem's preliminary assessment indicated that the project may not pass its social and economic welfare test, primarily because it could lead to increased costs for consumers in Great Britain due to higher prices in the Single Electricity Market. The regulator's focus on GB projects complicates the situation for Northern Ireland, which lacks a specific interconnection policy. Transmission Investment disputes Ofgem's findings and has submitted alternative economic modeling to support its case. The regulatory landscape has become more complex post-Brexit, as there is no overarching body to guide projects that span different UK regulators, a role previously filled by the Agency for the Cooperation of Energy Regulators (ACER) within the EU framework. Despite these challenges, Transmission Investment asserts that the LirlC project will yield substantial economic benefits for both Northern Ireland and Great Britain while contributing to net zero goals. The Department for the Economy in Northern Ireland is also working on research related to interconnectors as part of its 2024 Energy Strategy Action Plan.