(Alliance News) - Prysmian Group Spa announced Wednesday that it has reached an important milestone with SP Transmission PLC and National Grid Electricity Transmission PLC, two of the owners of the electric transmission network in the United Kingdom.

Following Prysmian's selection in May as the exclusive preferred bidder, the agreement includes an initial payment of EUR85 million and a guarantee for continued availability of capacity by Prysmian Group to build the Eastern Green Link 1 cable connection during the remaining negotiation period aimed at finalizing the contract in a timely manner within the year.

Eastern Green Link 1 involves a high-voltage DC submarine and terrestrial cable connection that will use about 400 km of cable over a route of about 200 km, connecting Torness in Scotland to Hawthorn Pit in northern England.

"With a power transmission capacity of 2 GW, this connection is expected to be the first cable system in the UK to use 525 kV high-voltage direct current technology with extruded XLPE insulation. A 400 kV high-voltage AC cable system that will require about 30 km of cable over a 5 km route will also connect conversion and grid substations to the Scottish end of the route," the company explained in a note.

"EGL1 is part of a series of planned power grid upgrades aimed at increasing the capacity of the UK's existing transmission grid and encouraging increased flows of renewable energy from the north of the country to centers in southern areas that need it. This connection will therefore support the ambition to have 50 GW of wind power generated offshore by 2030 and achieve a Net Zero economy by 2050."

On Tuesday, Prysmian closed in the green by 0.2 percent at EUR38.08 per share.

By Claudia Cavaliere, Alliance News reporter

Comments and questions to redazione@alliancenews.com

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.