LONDON (Reuters) – Britain’s energy regulator said on it would accelerate 4 billion pounds ($5.19 billion) of investment to speed up development of the country’s electricity grid and boost the country’s chances of meeting clean energy targets.
Ofgem, which regulates the companies that build and operate the transmission network, said the funding would help them overcome supply chain difficulties by providing financial flexibility to procure essential equipment, materials and services years in advance.
Akshay Kaul, Ofgem’s director-general for infrastructure, said there was unprecedented pressure on global supply chains as many nations step up efforts to decarbonise their energy systems.
“It’s vital that we help the electricity transmission owners move quickly, procuring at scale as early as possible to reduce financial risk – and show the global supply chain that Britain is committed to investing in its energy networks,” Kaul said.
Britain has three transmission owners: National Grid Electricity Transmission, Scottish and Southern Electricity Networks Transmission, and SP Energy Networks.
Thursday’s announcement adds to cross-sector efforts by the Labour Party government to make regulators more focused on taking steps that will generate economic growth.
The government has set a target to decarbonise Britain’s energy generation network by the end of the decade — a goal that the National Energy System Operator has described as a “huge challenge”.
“This fast-track measure means we can quickly get Britain building the infrastructure we need to deliver clean power by 2030,” junior energy minister Michael Shanks said.
($1 = 0.7700 pounds)
(Reporting by William James; Editing by Alan Barona)
