A NEW electricity 'superhighway' has had its funding secured from Ofgem.

The £2 billion subsea cable will help power up to two million homes with homegrown wind power.

The 196km cable will run underground and subsea between Torness, near Dunbar, and Hawthorn Pit, County Durham.

The project was approved through a fast-track new Ofgem process and will play a key role in achieving the Government’s 2030 Clean Power goal.

This comes after East Lothian councillors approved the plans at the start of November, despite 60 objections.

The National Energy System Operator (NESO) flagged Eastern Green Link 1 (EGL1) as an 'essential element' in achieving the Government’s Clean Power 2030 ambition.

The high-voltage electricity superhighway will be able to transport 2GW of homegrown wind-generated electricity.

The project will reduce Britain’s reliance on volatile international gas markets by further harnessing the power of homegrown North Sea wind, it was claimed.

NESO’s recent Clean Power 2030 Report has also shown that the project will deliver annual savings of more than £870 million by reducing the need to compensate British wind generators, who are currently asked to turn off production during times of high wind due to lack of grid capacity. This in turn will help drive down consumer bills.

As part of its mission to rapidly upgrade the energy system with a minimum cost to customers, Ofgem has identified more than £43 million of savings which have been cut from the project costs without impacting delivery or quality.

Communities that host the infrastructure in Scotland and north-east England are also set to benefit from a £7.9 million social value and community benefit fund.

Beatrice Filkin, Ofgem director of major projects, said: "This announcement takes us another step closer to achieving Great Britain’s 2030 Clean Power ambitions.

"It means customers can reap the benefits of abundant homegrown wind faster, while also being increasingly shielded from volatile imported gas prices.

"Our fast-track process provides developers with access to some initial upfront funding from the projected budget, so they can secure the supply chain commitments needed to secure the sought-after materials to deliver this project as soon as possible."

Ms Filkin was clear about the project finances, stating: "However, streamlining our process does not mean we’ve handed a blank cheque to the developers.

"We’ve built in safeguards which mean we can step in where needed to ensure they deliver maximum efficiency and benefit to customers."