Ofgem approves $53.8 B investment for UK energy system
UK, London: Ofgem has confirmed a major investment program into Britain's energy infrastructure.
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UK, London: Ofgem has confirmed a major investment program into Britain’s energy infrastructure.
The program aims to improve services for customers, reduce the impact of the networks on the environment, and drive a fair price for consumers.
Ofgem has unveiled a spending package of $40.3 B (£30 B) upfront funding for the utility network companies. This is in total ~20 % more than it previously proposed in July. The package relates to gas and electricity transmission, gas distribution, and the electricity system operator for the five-year price control beginning April 2021.
Ofgem is also making unprecedented additional funding available for future green energy projects. That is projects that companies propose over the next five years, aimed at eliminating emissions from the energy system and helping hit net-zero targets across Great Britain — a major aim of Ofgem’s price control.
Companies have indicated that $13,4 B (£10 B) of such projects could be in the pipeline, such as reinforcement along the East Coast of England to anticipate 40 GW of offshore wind in the North Sea.
Ofgem’s Chief Executive Jonathan Brearley said: “Our $53.8 B (£40 B) package massively boosts clean energy investment. This will ensure that our network companies can deliver on the climate change ambitions laid out by the prime minister, while maintaining world-leading levels of reliability. These costs must fall fairly for consumers. We are reducing the amount paid to shareholders so that they are closer to current market levels. This means that companies can attract the vital investment we need while making sure that consumers don’t pay more than is necessary to achieve this.”
Source: T&D World