UK energy regulator Ofgem has approved £3.4bn of funding for delivery of Eastern Green Link 2 (EGL2), an electricity ‘superhighway’ between Peterhead in north-east Scotland and Drax on the east coast of England.

EGL2 will be the UK’s largest electricity transmission project and will include the country’s longest high voltage direct current (HVDC) subsea cable, spanning more than 270 miles (436km).

The aim of this subsea connection project is to transport the vast amount of renewable energy generated in Scotland to other areas of the UK, where it will help to power two million homes. It will be delivered as part of a joint venture between the National Grid and Scottish & Southern Electricity Networks (SSEN) Transmission.

With Ofgem having approved the £3.4bn of funding, construction on the 525kV 2GW subsea connection will get underway later this year. The connection is due to be operational in 2029.

Ricky Saez, EGL2 project director, said: “Ofgem’s decision to issue its final project...