The Eastern Green Link 2 (EGL2), a major transmission project, just got a big green light with $939 million in funding. This investment is provided by the Swedish Export Credit Corporation (SEK). Total spend for EGL2 is expected to go up to €5 billion, or around $5.8 billion. This is an ambitious project that would significantly improve the UK’s renewable energy infrastructure. It will create a 2 GW, high-voltage direct current (HVDC) subsea transmission cable between Scotland and England.
EGL2 is not slated to come online until 2029 at the earliest. The project will demonstrate the world’s first 525kV, 2GW HVDC subsea transmission cable at that scale. It will run from Peterhead in Scotland to Drax in Yorkshire. EGL2 will play a key part in enabling the decarbonization of the UK’s electricity grid. That would fit like a glove with the UK government’s net zero strategy.
Swedish Financing for a Global Impact
SEK offers sustainable long-term financing to promote Swedish and European exports. This funding is intended to fully cover the National Grid’s share of EGL2. The project will bring in materials from Hitachi Energy, which will bring cutting-edge technology to the cable’s development.
SEK’s global trade and export finance director, Marica Bixo, said that the impact achieved through this funding initiative made her proud. She stated,
“This is a strategically important investment that strengthens the UK’s renewable energy infrastructure. We are proud to contribute by financing Swedish technology with global impact.”
The partnership between SEK and EGL2 is a wonderful example of the power of South-South cooperation. Jointly, they fight climate change and advocate for a just, equitable transition to sustainable energy.
Commitment to Green Financing
As the world moves toward green priorities, SEK has carved out an important niche by being among the first in sustainable financing. Bixo highlighted their commitment to green finance, which is a green bond hot spot, explaining,
“Green and sustainable financing is a priority area for us, and this project clearly supports the transition to a low-carbon economy.”
EGL2 will be a major step forward for the UK. It further shows how effective global partnerships can lead to unique, innovative solutions for expanding renewable energy.
Future Outlook for Renewable Energy in the UK
With an anticipated operational date of 2029, EGL2 will double the UK’s renewable electricity production and is expected to power 1.3 million homes. The new link between Scotland and England will move renewable energy to a greater share of the grid, improving overall grid stability and reliability.
The UK government, meanwhile, is upping the stakes in its drive to make net zero targets. Solutions found through projects like EGL2 will be instrumental in leading the way on the transition to a sustainable energy future. Firms such as SEK and Hitachi Energy are key partners in this collaborative effort. Their participation underscores its potential to have a powerful effect at home and abroad.