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7.4 Strategic Options Report DOCUMENT 7.4 Strategic Options Report National Grid (Richborough Connection Project) Order Regulation 5(2)(q) of the Infrastructure Planning (Applications: Prescribed Forms and Procedure) Regulations 2009 and TEN-E Regulation EU347/2013 First published June 2013 Application Ref: EN020017 January 2016 Richborough Connection Project Strategic Options Report for the South East Region June 2013 Issue 1 National Grid National Grid House Warwick Technology Park Gallows Hill Warwick CV34 6DA Table of Contents 1 Introduction ............................................................................................... 3 2 Background................................................................................................ 7 3 Summary of the Need Case.........................................................................11 4 New Transmission Routes - National Grid’s Approach......................................14 5 Potential Strategic Options Identified for the Richborough Connection ..............20 6 Appraisal of Strategic Option 1 – Richborough to Canterbury North (onshore) ...27 7 Appraisal of Strategic Option 2 – Richborough to Cleve Hill (onshore)...............37 8 Appraisal of Strategic Option 3 – Richborough to Kemsley (onshore) ................48 9 Appraisal of Strategic Option 4 – Richborough to Cleve Hill (offshore)...............59 10 Appraisal of Strategic Option 5 – Richborough to Sellindge (offshore) ...........64 11 Appraisal of Strategic Option 6 – Richborough to Kemsley (offshore) ............70 12 Conclusions ...........................................................................................75 Strategic Options Report Appendices...................................................................93 Appendix A – Summary of National Grid’s Legal Obligations..................................94 Appendix B – Requirement for Development Consent ............................................97 Appendix C – Technology Overview...................................................................102 Appendix D – Economic Appraisal .....................................................................113 Appendix E –Detailed Mathematical Principles used for AC Loss Calculation............128 Appendix F – Environmental and Socio-Economic Appraisal..................................133 Appendix G – Environmental and Socio-Economic Assets .....................................136 Appendix H – Stakeholder Comments & Responses.............................................146 Glossary of Terms and Acronyms......................................................................162 2 1 Introduction 1.1 This Strategic Options Report (the “Report”) is part of the pre-application procedures adopted by National Grid Electricity Transmission plc (“National Grid”) for major infrastructure projects that may require an application to the Secretary of State for development consent, with the Planning Inspectorate1 (“PINS”) being responsible for examining the application and then making a recommendation to the relevant Secretary of State for determination. 1.2 National Grid has identified a need to extend the electricity transmission system in the south east of England (documented in the Richborough Connection Project Need Case dated October 2011 – the “Need Case”2). A summary of the Need Case that explains the reasons why extension of the electricity transmission system in the south east region is required is included in this Report. 1.1 This Report provides an overview of the options appraisal approach that National Grid uses to consider strategic options (the “Strategic Optioneering Process”). In line with the Strategic Optioneering Process, National Grid considers relevant technical, environmental, socio-economic and cost factors to appraise options. 1.2 National Grid’s appraisal of the strategic options that were identified to resolve the transmission system extension requirements identified for the proposed 1000MW electricity interconnector between Belgium and Great Britain (Nemo Link®) project is documented in this Report. 1.3 This document and other information regarding the proposed transmission project, can be found on the National Grid website at: http://richboroughconnection.co.uk/ 1 Further information is available on the National Infrastructure Planning website at http://infrastructure.planningportal.gov.uk/ 2 http://richboroughconnection.co.uk/assets/downloads/Richborough_Connection_Pr oject_Need_Case.pdf 3 1.4 This Report provides: An overview of National Grid’s role and obligations (Section 2). A summary of the Need Case (Section 3) An overview of National Grid’s approach to the routeing of transmission connections (Section 4) An overview of the strategic options that National Grid identified for the south east region (Section 5) More detailed appraisal of Potential Strategic Options (Sections 6 to 11) The main conclusions from National Grid’s analysis work (Section 12) 1.5 This Report also includes appendices that contain more detailed information. The appendices provide: A summary of National Grid’s legal obligations (Appendix A). Requirements for Development Consent (Appendix B). An overview of technology options (Appendix C). An overview of the method National Grid uses to prepare lifetime cost estimates for each Potential Strategic Option (Appendix D). The detailed mathematical principles used for calculating AC losses (Appendix E). An overview of Environmental and Socio Economic factors that National Grid considers as part of options appraisal and a summary of the reasons that some factors are not included in the scope for this appraisal (Appendix F). An overview of environmental and socio-economic assets considered as part of the appraisal (Appendix G). 4 A glossary of terms and acronyms that are used in this Report (Appendix H). Statutory Consultees and Local Planning Authorities Engagement 1.6 As part of developing this Report National Grid consulted with the local planning authorities potentially affected by the proposal and core stakeholder agencies to obtain technical feedback and guidance on the work undertaken, this included providing to them the Draft Strategic Options Report following a workshop held in October 2012. The following organisations were consulted: Kent County Council; Canterbury District Council; Dover District Council; Shepway District Council; Thanet District Council; Swale Borough Council; Natural England; English Heritage; and Environment Agency. 1.7 Officers from the above organisations were invited to attend a workshop during October 2012 at which the need for the development, the method and findings of the appraisal were presented and key issues discussed. Attendees and those that were invited but were unable to attend were provided with copies of the draft report and asked to provide technical feedback and officer opinions on the work done to date. A comprehensive schedule of the issues raised and responses to these are set out in a table presented at Appendix H of this report. The comments received are officers’ technical and initial responses and do not form an official response or view of any of the organisations or planning authorities on the options considered. 1.8 National Grid will continue to regularly review strategic options that could meet the identified Need Case in light of changes of circumstances that could materially affect the analysis. These include but are not limited to, technology 5 developments, cost updates and changes to the connection dates of new generators in the region. 1.9 Comments on the content and analysis included in this Report are welcome and will be taken into account in the on-going development of the project and future reviews. 6 2 Background 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 energy sources, including coal, gas, nuclear and wind, and sell energy produced in the wholesale market. Suppliers purchase electricity in the wholesale market and supply to end customers. 2.2 The peak electricity demand in Great Britain is over 60 GW and occurs during winter. The combined capacity of all generators and interconnectors connected to and/or using the electricity transmission system is greater than this peak demand; this excess is generally referred to as Plant Margin. 2.3 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 are mainly used to transport electricity from bulk infeed points (interface points with the transmission system) to the majority of end customers. See Figure 2.1, below. Figure 2.1: The electricity system from generator to consumer 7 2.4 Electricity can also be traded on the single market in Great Britain by generators and suppliers in other European countries. Interconnectors with transmission systems in France, Northern Ireland and the Netherlands are used to import electricity to and/or export electricity from the transmission system. National Grid's Role 2.5 Transmission of electricity in Great Britain requires permission by a licence granted under Section 6(1)(b) of the Electricity Act 1989 (the "Electricity Act"). National Grid has been granted
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