SP Energy Networks announces £33.9 million for green projects in Central and Southern Scotland

• SP Energy Networks unlocks £33.9 million of funding for green projects to deliver Net Zero in Central and Southern Scotland
• The investment in 18 projects over the next 18 months will help achieve a green economic recovery
• Work is part of massive change needed to ready the grid for huge increase in demand as electrification of heat and transport gathers pace
• Projects will upgrade parts of the network to provide additional electrical capacity in areas where we are expecting growth in low carbon technologies

SP Energy Networks has unlocked £33.9 million of fresh funding to invest in 18 green energy projects in Central and Southern Scotland.

The projects will provide additional electrical capacity in areas where SP Energy Networks, the distribution network owner for the area, is expecting electricity demand to grow, delivering the network infrastructure required to support the UK’s low carbon future and helping to accelerate a green economic recovery.

This work will see the installation of four brand new main substations in Central and Southern Scotland, including the construction of a new £6m substation near the COP26 venue in Glasgow.

The city is hosting the most important climate summit since 2016 in November this year and the substation will create a lasting COP26 legacy by enabling future green developments and the connection of low carbon technologies  into the grid and help Glasgow with its own Net Zero ambitions.

This project, and the 17 other network infrastructure projects, will be delivered over the next eighteen months and will provide the capacity for the connection of a host of LCTs such as electric vehicles (EVs) and heat pumps.

These technologies will help households transform their energy use as they switch to electric options from a current reliance on gas and fossil fuels to power transport and heat. And, on the journey to Net Zero, more and more of this electricity will come from renewable energy sources like wind and solar.

Cabinet Secretary for Net Zero, Energy and Transport Michael Matheson said: “Scotland is wholly committed to becoming a net-zero economy by 2045, and doing so in a way that is just and fair for all.

“I strongly welcome this investment in Scotland’s energy networks, which will help our progress towards decarbonisation while ensuring that the economic and social benefits of the energy transition are realised across the country.

“We have worked closely with our stakeholders to support the strong and successful bids from Scotland’s network companies for this substantial funding. These projects and investments will support further innovation in green energy, unlocking capacity in our networks to support electrification of transport as well as other technologies like battery storage, renewables and heat pumps.

“Today’s announcement by Ofgem is the product of an agile approach to investment and we must now build on this to ensure that our networks remain capable of supporting Scotland’s net-zero transition.”

Frank Mitchell, CEO of SP Energy Networks, said: “These projects were selected because they are shovel-ready, can be delivered at speed and will help communities in Central and Southern Scotland to take important steps forward on their journey to Net Zero.

“To tackle climate change we’re electrifying transport, decarbonising heating and buildings and connecting more wind and solar energy generation than ever before. Our network must be ready to support these changes and set the foundations for a Net Zero future.

“In six months, Glasgow will host the most important climate summit in years, COP26. At the forefront of discussions will be how everyone can accelerate climate action and this funding will help to speed up our own work to deliver a network that can unlock Net Zero for Scotland and the communities we serve.”

The investment announced today will create 154MW of new network capacity to power more than 200 rapid or ultra-rapid EV chargers and 1,500 domestic heat pumps in the region as well as numerous other significant connections.

Each project has been selected for the contribution it will make towards driving a green economic recovery, achieving Net Zero and delivering a resilient and reliable energy network that will work for energy consumers now and well into the future.

Frank Mitchell said: “We have ambitious plans to revolutionise the distribution network between 2023 and 2028 – we’re going to reinforce or replace hundreds of miles of cables, upgrade more than 800 substations and bring new technologies online to help us manage the increased energy flowing through our grid. 

“The projects we have announced today are welcome, but they only represent the tip of the iceberg for our energy networks. Make no mistake, this is an infrastructure project to rival anything this country has delivered in recent memory.”

In total, 40 projects will be delivered across SP Energy Networks distribution area, which provides electricity to more than 3.5 million homes and businesses across Central and Southern Scotland and Cheshire, Merseyside and North and Mid Wales.