Ofgem has today given the provisional green light to a multi-billion-pound investment to power the biggest expansion of the UK’s electricity grid since the 1960s.
An initial £8.9bn investment is being committed to Britain’s high-voltage electricity network, with a further £1.3bn ready to go.
The draft settlement is the first step in an estimated £80bn investment programme 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 right across the country to be completed within five years.
This will significantly increase the grid’s capacity, through new power lines, substations and other technologies, to handle the flow of electricity from new renewable sources.
These projects, which are also vital for driving growth, will upgrade over 4400km of overhead lines and deliver 3500km of new circuits, including investments offshore, doubling the total build in the last 10 years.
Ofgem said it means up to 126GW of clean power generation will be connected to the grid by 2030 alongside additional flexible storage and technologies, enough to power millions of households with clean, stable and secure energy.
Ofgem chief executive Jonathan Brearley (pictured) said: “This record investment will deliver a homegrown energy system that is better for Britain and better for customers.
“These 80 projects are a long-term insurance policy against threats to Britain’s energy security and the instability of prices. By bringing online dozens of homegrown, renewable generation sites and modernising our energy system to the one we will need in the future we can boost growth and give ourselves more control over prices too.
“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.”
The draft determinations are now published for consultation with final decisions made by the end of 2025.
Source: reNews
