Britain’s energy regulator, Ofgem, has given the provisional green light to an investment program of $33 billion (£24 billion) to maintain essential gas distribution networks and expand the power grid in a move to boost energy security and allow more renewables to enter the electricity system.
A total of $20.7 billion (£15 billion) will ensure the continued safe operation of Great Britain’s gas transmission and distribution networks, making sure they deliver safe and secure supplies of gas to households and businesses across the UK, Ofgem said on Tuesday.
Another $12.2 billion (£8.9 billion) is earmarked for Britain’s high-voltage electricity network, with a further $1.8 billion (£1.3 billion) ready to go – to power the biggest expansion of the electricity grid since the 1960s.
?This investment plan is the first step in an estimated $110 billion (£80 billion) investment program boosting electricity network capacity, protecting UK households from the volatile international gas markets that caused the massive fluctuations in energy bills in recent years.??
The investment in the grid, which will rise to around four times the current spending levels, will allow for 80 transmission projects and all associated works to be completed within five years, Ofgem said.
“This record investment will deliver a homegrown energy system that is better for Britain and better for customers. It will ensure the system has greater resilience against shocks from volatile gas prices we don’t control,” Ofgem CEO Jonathan Brearley commented.
“Doing nothing is not an option and will cost consumers more – this is critical national infrastructure. The sooner we build the network we need, and invest to strengthen our resilience, the lower the cost for bill payers will be in the future.”
Earlier this year, Ofgem said a new set of rules are granting early access to nearly $5.5 billion (£4 billion) of investment for crucial transmission equipment and services, which is expected to connect renewable energy projects to the grid quicker.
By Tsvetana Paraskova for Oilprice.com
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