Orgem has given the provisional green light to an initial investment program of £ 24 billion to make the transfer of clean energy from renewable sources possible.
“The core of today’s announcement is the need to upgrade our electricity network […] We have approved the network companies to continue with all remaining electricity transmission projects that have been identified by Neso if necessary for complying with the Clean Power 2030 plan, ”said Neil Kenward, director for strategy, economy, research and net zero on OFGEM.
Kenward spoke this morning (July 1) on Solar Media’s Clean Power 2030 Summits, just after the news had shown that OFEM has published his draft framework for electricity and gastransmission and gas distribution price checks for the next period, which last five years from April 2026 to March 2031.
The Riio-3 price check Offers network companies incentives for innovation and securing investments So that they can develop sustainable energy networks at the lowest costs for current and future customers.
Kenward said that ofgem capital investments expected during the RIIO-3 period of up to £ 80 billion, a four-time increase in current investment levels. “This financing will finance the construction of new high -voltage lines, substations and cables on land and at the sea, so that the wealth of the growing share of GB electricity comes from renewable sources considerably.”
An initial investment of £ 8.9 billion is dedicated to the high -voltage network as the first step in the £ 80 billion investment program described by Kenward.
According to the announcement of OFGEM, the four -fold investment growth will make it possible to complete 80 transmission projects by 2031 that will upgrade more than 4400 km of overhead lines and supply 3500 km of new circuits. The energy regulator states that this means up to 126 GW of clean power generation, will be connected to the schedule by 2030 in addition to extra flexible storage and technologies.
Keep consumer costs low
“Het geval voor deze investeringen in zowel gas- als elektriciteitsnetwerken is dwingend, maar dit moet op zijn minst kosten voor de consument,” zei Kenward vanmorgen en voegde eraan toe: “We hebben een rigoureuze aanpak toegepast om bedrijfsplannen te testen, waardoor meer dan drie miljard pond aan voorgestelde uitgaven wordt uitgeschakeld, waarmee kosten goed zijn, terwijl de kosten van krachten worden ingesteld, terwijl ze sterk zijn opgeleverd en op het budget are delivered. “
Nevertheless, he acknowledged that even under the Riio-3 framework, the expected increase in network costs during the five years of the price check is considerable, which Vangem acknowledges, which will be a “challenge” for energy consumers.
As a result, Kenward said: “It is an important comment that the investment in the electricity grid more than itself pays itself.”
“The increased schedule capacity will save billions of pounds per year, which reduces the interventions that the system operator has to make, the surplus generation of the surplus that is eliminated behind network restrictions.
“By connecting more renewable projects to the grid, the investment will also facilitate reductions of the wholesale price.”
Taking into account these savings, the net addition to household accounts to support the investment of £ 80 million in the transmission network will be only £ 20 “for a safer, clean energy system.”
