1st July 2026
These projects come from National Grid ESO’s Pathway to 2030, Beyond 2030, and Ofgem approvals. They represent the largest expansion of the UK’s electricity network since the 1960s.
1. Scotland → England HVDC Superhighways (The Big One)
These are the most important upgrades for the Highlands. They are designed specifically to move Scottish renewable energy south.
Eastern HVDC Links (EHL1, EHL2, EHL3)
High‑voltage direct‑current subsea cables connecting Scotland to England.
EHL1: Peterhead → Drax
Capacity: 2 GW
Status: Approved
Purpose: Move offshore wind from NE Scotland to Yorkshire.
EHL2: Torness → Hawthorn Pit
Capacity: 2 GW
Status: Under development
Purpose: Reinforce Scotland–England corridor for AI‑driven load in NE England.
EHL3: Peterhead → Lincolnshire
Capacity: 2 GW
Status: Proposed
Purpose: Support future offshore wind zones and English data‑centre clusters.
Impact on the Highlands:
These cables ensure that most new Scottish renewable energy—especially offshore wind—flows south. They make Scotland a generation zone, not a consumption zone.
North of Scotland Upgrades (Highlands & Islands)
These upgrades are happening in the Highlands, but they exist to export power.
Beauly–Denny Reinforcement (completed but being expanded)
The backbone of Highland transmission.
New substations and uprated lines planned.
Caithness → Moray → Beauly 400 kV corridor
Strengthens the grid around Wick, Thurso, and the Moray Firth.
Supports offshore wind (Moray East, Moray West, Beatrice).
Enables export south via Beauly.
Orkney Transmission Link (delayed but progressing)
Connects Orkney’s huge renewable potential to the mainland.
Will feed into the Beauly hub and then south.
Shetland HVDC Link (under construction)
600 MW HVDC cable from Shetland to Caithness.
Built for Viking Wind Farm and future offshore wind.
Again: power flows south.
Impact on the Highlands:
More pylons, more substations, more cables—but the energy is not staying local. It’s being moved to English load centres.
England’s AI‑Driven Reinforcements (Where the Power Goes)
These upgrades are happening because of massive new demand from:
AI data centres
Cloud campuses
Electrification
Industrial clusters
Yorkshire & Humber Reinforcement
Supports Drax, Humber industrial cluster, and new data‑centre load.
East Coast Onshore Reinforcement
New 400 kV lines from Lincolnshire → Cambridgeshire → Hertfordshire.
Directly supports London and Slough data‑centre clusters.
Midlands Transmission Upgrade
Reinforces Birmingham corridor for industrial electrification and compute hubs.
London Power Tunnels 2
Massive underground cable project to support London’s growing digital load.
Offshore Wind Transmission (Scotland’s Energy Motor)
Scotland’s offshore wind zones are the reason for most of the upgrades.
Key zones:
Moray Firth
Pentland Firth
Shetland waters
NE Scotland (ScotWind)
These zones will generate 20–25 GW of power by the 2030s.
Almost all of it is planned to be exported south.
So Will the Highlands See AI‑Driven Energy Development—or Just More Cables?
Short answer:
The Highlands will see more renewable projects and more transmission infrastructure—but the electricity will overwhelmingly flow south to England.
Why?
AI data‑centre clusters are forming in England and Ireland, not Scotland.
They need to be near fibre networks, population centres, and existing substations.
Scotland is becoming a renewable generation zone.
Offshore wind is the driver.
National Grid ESO’s strategy is explicit:
Move Scottish power south via HVDC superhighways.
The Highlands lack the fibre density and grid topology for hyperscale AI campuses.
They are perfect for generation, not compute.
Could Scottish Government apply a levy on transmission to get some revenue
the Scottish Government could apply a levy on electricity transmission—but only under certain conditions, and it would require political negotiation with Westminster because transmission charging is currently a reserved (UK‑level) regulatory power.
Long answer:
A transmission levy is absolutely possible in principle, and several countries already do it. But in the UK, the regulatory structure makes it complicated—and politically explosive.
Below is a clear, structured breakdown of what Scotland can do, what it cannot do, and what would need to change.
Can Scotland apply a transmission levy?
Legally: Not under current powers.
Transmission charging (including TNUoS fees) is controlled by:
Ofgem (UK regulator)
National Grid ESO (UK system operator)
UK Government (DESNZ)
These bodies set:
Transmission tariffs
Connection charges
Balancing costs
Network investment rules
The Scottish Government does not currently have the authority to impose a levy on electricity flowing south.
This is why Scottish generators already pay the highest transmission charges in Europe, while English generators often pay negative charges (they are subsidised).
Could Scotland gain the power to impose a levy?
Yes—if powers were devolved or a new settlement was negotiated.
There are three realistic pathways:
1. Devolution of transmission charging powers
Holyrood could request that transmission charging be devolved, similar to how Scotland already controls:
Planning
Local energy strategy
Renewables licensing (partially)
This would allow Scotland to:
Impose a levy on exported electricity
Reduce charges for Scottish generators
Create a “Highland Energy Dividend”
Ring‑fence revenue for local communities
This would be politically contentious but technically feasible.
2. A Scotland–UK energy compact
A negotiated agreement could allow Scotland to receive:
A share of transmission revenue
A per‑MWh export fee
A “renewable generation dividend”
Compensation for hosting transmission infrastructure
This is similar to arrangements in:
Norway (hydropower export fees)
Quebec (electricity export royalties)
Iceland (grid access payments)
This model avoids constitutional change.
3. A levy applied through planning or land‑use powers
This is the most creative option.
Scotland controls:
Land use
Planning permission
Marine licensing
Local infrastructure approvals
It could impose:
A planning‑linked infrastructure fee
A community benefit levy
A grid‑corridor access charge
A Highland Transmission Impact Fee
These would not be “transmission charges” in the Ofgem sense—but they would function similarly.
This is legally plausible and has precedent in:
Wind farm community benefit payments
Marine licensing fees
Infrastructure corridor charges in Scandinavia
Would the Highlands benefit?
Yes—if Scotland chooses to structure the levy regionally.
The Highlands could receive:
A Highland Energy Dividend
A Grid Corridor Fund
A Community Infrastructure Levy
A Local Transmission Impact Payment
Given that the Highlands host:
The Beauly–Denny corridor
The Caithness–Moray 400 kV line
The Shetland HVDC landing point
Future ScotWind transmission hubs
it is entirely reasonable for Highland communities to demand compensation.
Why a levy makes sense now
1. Scotland is becoming a generation zone
Most new Scottish power—especially offshore wind—will flow south to England’s AI data‑centre clusters.
2. Transmission infrastructure is expanding massively
The Highlands will see:
More pylons
More substations
More HVDC landing points
More grid corridors
3. England will benefit economically from Scottish power
AI data centres, industrial clusters, and electrification hubs are all located in England.
4. Scotland currently pays more to export power
Scottish generators face the highest transmission charges in Europe.
A levy would rebalance this.
The non‑obvious insight
A Scottish transmission levy would not just raise revenue it would change the economics of UK energy.
It would:
Make Scottish renewables more valuable
Force Westminster to negotiate
Potentially accelerate Scottish grid investment
Give Highland communities a direct financial stake in energy exports
It would also highlight the political tension between:
Scotland as a renewable powerhouse
England as a consumption and AI‑compute hub
This tension is only going to grow.