Ofgem has approved a request by Scottish and Southern Electricity Networks (SSEN) to continue operating a national testing facility for high-voltage direct-current (HVDC) technologies over RIIO2.
The National HVDC Centre was created through a joint innovation project led by SSEN, which also involved National Grid and SP Energy Networks. The project was awarded £11.3 million as part of Ofgem’s Network Innovation Competition in 2013.
The funding direction required that SSEN submit a notice to Ofgem by 31 March 2020 explaining how it planned to operate the centre beyond the end of the current regulatory period.
SSEN submitted the notice in February, stating its intention to keep running facility and requesting annual running costs of £860,000 – or £4.3 million over the five-year price control for electricity transmission starting in April 2021. It also requested a reopener to allow the company to seek additional funding to expand the centre.
Ofgem said funding levels for the facility will be considered as part of the wider RIIO2 review process but SSEN should continue to own and operate the facility: “Given that HVDC is still in its infancy within the UK, the prospect of emerging network projects, coupled with changing network characteristics, provides a strong case for such a centre looking at the network as a whole.
“We recognise the role the centre plays in supporting the decarbonisation and net-zero targets, as HVDC transmission is recognised as an efficient method for the transfer of power over long distances, therefore making it relevant to the transmission of offshore renewable energy.
“Our expectation is for HVDC to have a pivotal role in enabling the efficient connection of renewable generation to the electricity system”.
The regulator said a change in ownership could be detrimental to operation of the centre and neither itself nor stakeholders could see any benefits.
Ofgem is due to publish its draft determinations on the RIIO2 price controls for electricity transmission, gas transmission, gas distribution and the electricity system operator on Thursday (9 July).