Energy grid upgrade in Cambridge will not need GCP funding as Ofgem accepts project is ‘fully justified’

The energy grid in Cambridge is to be upgraded without the need for money from the Greater Cambridge Partnership (GCP).

Two new substations will be built in East Cambridge and Trumpington to meet the expected trebling of demand by 2031 as thousands of new homes are built and jobs are created.

The Office of Gas and Electricity Markets (Ofgem) has reclassified the project as ‘fully justified’ following work by UK Power Networks and has released the funding for the work.

It means the GCP will not have to fork out for the upgrade.

In November 2021 its executive board had agreed to earmark money as part of its future investment strategy to forward fund the project, with the aim of recouping it.

Councillors had admitted being “uncomfortable” that GCP funds were to be used for the project, but chief executive Rachel Stoppard had said there was a risk that “nearly 6,000 homes and 270,000 sq m of employment space” would not proceed without it.

Now the GCP’s involvement will be limited to ensuring the scheme links up with transport and housing plans in the area.

UK Power Networks will work on acquiring land and planning permission, then determine cable routing from the existing grid infrastructure to the new infrastructure with the support of the GCP.

Cllr Elisa Meschini, chair of the GCP’s executive board, said: “I am pleased to see this vitally important project progressing following extensive work and analysis by the GCP to make the case for upgrading our energy network.

“With thousands of new homes, jobs and an ever increasing demand for electricity as we make the switch to cleaner vehicles and energy, these two new substations will provide the energy we need for our ever growing region into the future.”

Demand on the grid is also expected to rise as more people switch to using electric vehicles and heat pumps begin to replace the use of gas in homes.

Colm O’Brien, portfolio manager for Capital Programme at UK Power Networks, said: “This work will be of substantial benefit to the businesses and communities we serve in Cambridge and will help to future proof the city’s electricity requirements, so is an important moment.

"This year we will commence installation of multiple ducts along the same route to launch four major power projects, a method of combining jobs to ensure we can help minimise any disruption for the work required.”