Energy links between Scotland and England will be improved, says Ofgem

Improvements to energy connections between Scotland and England will be made to ensure the “vast” renewable resources north of the border reach areas of high demand, the regulator Ofgem has said.

Neil Kenward, Ofgem’s director of strategy and decarbonisation, was asked about grid connection charges experienced by generators in Scotland when he appeared at a Holyrood committee on Tuesday.

Westminster’s Scottish Affairs Committee has called for an urgent review of the electricity grid, saying issues around transmission charges in Scotland need to be addressed.

A report released in September called for more investment in the grid in order to reach net-zero targets.

At Holyrood’s Net Zero Committee, SNP MSP, Fiona Hyslop, asked Mr Kenward about transmission charges.

She said the transmission costs were “exorbitant” and changes were needed.

Mr Kenward said the transmission charges were set up to incentivise new generation in locations near the main centres of demand.

He said: “There are ways in which we are helping facilitate new infrastructure investment.

“Obviously, the potential for more renewable power in Scotland is vast.

“And so, the system operator, the (National) Grid, is developing new network plans.

“And those strategic plans will help facilitate more transmission capacity to get that low carbon power from Scotland down to England when there’s a surplus north of the border.”

Scottish Conservative MSP, Liam Kerr, said the transmission charges reflected the reality that demand is concentrated elsewhere.

He asked the Ofgem officials giving evidence to the committee if consumers in Scotland were paying less for their energy than they would under market reforms proposed by Ms Hyslop.

Mr Kenward said he could not speculate on potential reforms.

He said: “Getting more infrastructure built to get that low-carbon power down to England when it’s demanded is absolutely fundamental to the network plans being developed by the system operator.”

He said Ofgem was working to ensure the investments could be accelerated.