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Strategic Options Report National Grid (North Wales Connection Project)

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Strategic Options Report National Grid (North Wales Connection Project) DOCUMENT 7.2 Strategic Options Report National Grid (North Wales Connection Project) Regulation 5(2)(q) of the Infrastructure Planning (Applications: Prescribed Forms and Procedure) Regulations 2009 Application Reference EN020015 September 2018 North Wales Connection Project Volume 7 Document 7.2 Strategic Options Report National Grid National Grid House Warwick Technology Park Gallows Hill Warwick CV34 6DA September 2018 North Wales Connections Strategic Options Report Table of Contents Page 1 Introduction .............................................................................................. 1 2 Background ............................................................................................... 4 3 New Transmission Routes – National Grid’s Approach ..................................... 7 4 The Need for Transmission Reinforcements in North Wales ........................... 12 5 Potential Reinforcement Options Identified .................................................. 19 6 Strategic Options Identified for the North Wales Connections ........................ 25 7 Appraisal of Strategic Option 1 – Wylfa to Connah’s Quay (offshore) .............. 27 8 Appraisal of Strategic Option 2 – Wylfa to Connah’s Quay (offshore) and Wylfa to Pembroke (offshore) ................................................................................ 36 9 Appraisal Approach for Strategic Options 3, 4, 5 and 6 ................................. 45 10 Appraisal of Strategic Option 3 – Wylfa - Pentir Works .................................. 46 11 Appraisal of Strategic Option 4 – Wylfa - Pentir Works .................................. 56 12 Appraisal of Strategic Option 5 – Wylfa - Pentir Works .................................. 64 13 Appraisal of Strategic Option 6 – Wylfa – West Gwynedd Works .................... 70 14 Appraisal of Works Common to Strategic Options 3, 4, 5, and 6 .................... 81 15 Summary of Common Works for Strategic Options 3, 4, 5 and 6 .................... 93 16 Cost Summary of All Strategic Options ....................................................... 95 17 Conclusions ............................................................................................. 97 18 Development of the Preferred Strategic Option ........................................... 113 Appendix A – Summary of National Grid Legal Obligations ...................................... 131 Appendix B – Requirement for Development Consent .............................................. 135 Appendix C – Technology Overview....................................................................... 140 Appendix D – Economic Appraisal ......................................................................... 151 Appendix E – Detailed Mathematical Principles used for AC Loss Calculation ............... 168 Appendix F – Environmental and Socio-Economic Appraisal ...................................... 173 Appendix G – Constraint Maps .............................................................................. 186 Appendix H – Evolution of Customer Requirements and Strategic Options .................. 195 Glossary of Terms and Acronyms .......................................................................... 201 i North Wales Connections 1 Introduction 1.1 This is an updated version of the Strategic Options Report (the Report) that was published in October 2015, and supersedes both that report and the Strategic Options Update Report which was published in October 2016. This version re- presents an appraisal of the strategic options as originally presented in 2012 and 2015 to ensure that a common level of appraisal detail is provided. Cost, Technical, Environmental and Socio-Economic appraisal outcomes have been reviewed at the strategic level using current data and updated as appropriate. It then describes the development of the preferred strategic option that National Grid Electricity Transmission plc (“National Grid”) has undertaken since 2012, including consideration of consultation feedback. The Report presents the latest cost estimate for the preferred option and summarises at Chapter 18 the outcome of a back-check to confirm whether this option remains the most appropriate, compared against previously “parked” strategic options. This back-check considers the outcomes of the more detailed design and assessment work undertaken alongside consultation feedback. 1.2 In addition, the presentation of the appraisal of the technology options available for each Strategic Option has been re-structured in this version of the Report to provide consistency with other Strategic Options Reports published by National Grid, specifically the Richborough Connection Project. This was in response to comment received from stakeholders in North Wales. This reformatting does not affect the appraisal process itself or the conclusions reached. 1.3 The Report has been prepared in accordance with the pre-application procedures adopted by National Grid for major infrastructure projects which may require an application to the Planning Inspectorate 1 for development consents. 1.4 National Grid has identified a need to reinforce the transmission system in North Wales to accommodate the connection of new generation projects. This need is documented in the North Wales Connection Project – Project Need Case, September 2018. A summary of the need case is included in this report. The full Need Case report (Document 7.1) forms part of the application for Development Consent. 1.5 This Strategic Options Report has been produced by National Grid to inform 1 Following the abolition of the Infrastructure Planning Commission (IPC) on 1 April 2012, the Planning Inspectorate became the government agency responsible for examining planning applications for Nationally Significant Infrastructure Projects. 1 North Wales Connections interested parties of its appraisal of the range of options and technologies which could provide the additional transmission infrastructure. The preferred option is identified in the report. 1.6 This report provides an overview of the multi-criteria analysis that National Grid uses to appraise strategic options (the "Strategic Optioneering Process"). As part of the Strategic Optioneering Process, National Grid considers relevant technical, environmental, socio-economic and cost factors in accordance with its statutory duties. 1.7 This report provides: background to the electricity industry and National Grid’s approach in developing proposals for new transmission routes (Section 2) an explanation of the need case for reinforcements in North Wales (Section 3) a description of the potential options which were parked prior to the strategic options appraisal process and an explanation of the reasons why (Section 4) an overview of the strategic options that National Grid identified for the North Wales Connections (Section 5) the results of the strategic options appraisal process (Sections 6 to 17) the main conclusions drawn from National Grid’s analysis (Section 18) the scope of the 2018 Development Consent Order application (Section 19). 1.8 This report also includes seven appendices and a glossary of terms and abbreviations. These provide further detailed information as follows: a summary of National Grid’s legal obligations (Appendix A) a summary of the requirements for development consent (Appendix B) an overview of the technology options for electricity transmission (Appendix C) an overview of National Grid’s economic appraisal (Appendix D) 2 North Wales Connections an explanation of the methodology used for AC losses calculation (Appendix E) an overview of the scope of the environmental and socio-economic appraisal (Appendix F) constraint maps for each strategic option (Appendix G), and a glossary of the terms and acronyms used in this report. 1.9 Throughout the options appraisal process, National Grid has continued to regularly review the identified need for new transmission infrastructure in North Wales and the strategic options that could meet that need in light of changes of circumstances that could materially affect the analysis. These circumstances include, but are not limited to, technology developments, cost updates, changes to generation and demand requirements and consultation responses. 3 North Wales Connections 2 Background Overview of the Electricity Industry 2.1 A single electricity market serves the whole of Great Britain. In this competitive, wholesale market generators and suppliers trade electricity on a half hourly basis. Generators produce electricity from a variety of fuel sources, including coal, gas, nuclear and wind, and sell electricity produced in the wholesale market. Suppliers purchase electricity in the wholesale market and supply to end customers. 2.2 Network infrastructure is needed to ensure that electricity can be transported from where it is generated to where it is used. The transmission system operates at 400 kV and 275 kV and transports bulk supplies of electricity from generating stations to demand centres. Distribution systems operate at 132 kV and below in England and Wales, and transport electricity from bulk supply points (interface points with the transmission system) to the majority of end customers. While the number of small scale generation projects connected to distribution systems is growing the majority of demand is still met by supplies from the transmission system. Figure 2.1 illustrates the general structure of the electricity system from generator to consumer. Figure 2.1 The electricity system
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