Nov 15 (Reuters) - British energy regulator Ofgem said on Friday a 2 billion pounds ($2.53 billion) funding package has been greenlit to build nearly 200 kilometres of new subsea and underground cables to boost energy security and cut bills.

The project, which was initially awarded last year, will reduce Britain's reliance on volatile international gas markets by further harnessing the power of the homegrown North Sea wind, the regulator said.

The project could help consumers save more than 870 million pounds in bills annually, Ofgem said, by cutting the need to compensate British wind generators due to lack of grid capacity.

Ofgem said its fast-track process would give developers access to some initial upfront funding from the projected budget so they can secure the supply chain commitments needed to deliver the project as soon as possible.

Of the 196 kilometers of cables for the Eastern Green Link 1, 176 km will be under the North Sea and the remaining 20 km underground linking the cable to substations and converter stations in Scotland and England, it said.

"However, streamlining our process does not mean we've handed a blank cheque to the developers. We've built in safeguards," Ofgem Director of Major Projects Beatrice Filkin said in a statement.

($1 = 0.7891 pounds)

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https://www.reuters.com/business/energy/uk-energy-regulator-green-lights-253-bln-funding-new-subsea-cable-2024-11-15/