A £2 billion funding package has been secured to construct a 196km subsea and underground electricity cable between Scotland and northern England, the UK government has announced.

The Eastern Green Link 1 (EGL1) project aims to strengthen energy security, lower consumer bills, and advance the government’s green energy goals.

Identified by the National Energy System Operator (NESO) as critical to achieving the UK's Clean Power 2030 objectives, EGL1 will act as a high-voltage electricity 'superhighway'. The cable will transport up to 2 gigawatts (GW) of wind-generated electricity from Torness in East Lothian to Hawthorn Pit in County Durham. Most of the 196km cable will lie beneath the North Sea, with 20km routed underground to connect to substations and converter stations in both regions. To put it into perspective, one gigawatt is enough to power one million homes for an hour.

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The project is expected to reduce the UK's dependence on international gas markets by better utilising the country's North Sea wind resources. NESO’s Clean Power 2030 Report estimates that EGL1 could save over £870 million annually by decreasing the need to pay wind generators to shut down during high wind periods due to insufficient grid capacity. These savings are anticipated to benefit consumers through lower energy bills.

Regulator Ofgem has also contributed to cost-efficiency, identifying over £43 million in savings during project planning without compromising quality or delivery timelines. Additionally, communities in Scotland and northeast England that host EGL1 infrastructure will receive £7.9 million through a social value and community benefit fund.

As the UK accelerates its transition to renewable energy, EGL1 represents a significant step forward in modernising the grid while keeping costs manageable for consumers.