Ofgem and energy networks are planning to invest up to £300 million as a strategy for green recovery
An investment of upwards of £300 million is available for the decarbonisation of the power grid under the strategy formulated for a green recovery by electricity network companies and Ofgem.
Members of the Energy Networks Association (ENA) collaborate with the authority to enable early grid investment and promote the rapid delivery of "technologies of tomorrow," working to increase the number of green jobs and green development across the UK.
The ENA has initiated a six-week appeal for local authorities, developers, and other parties to demonstrate why extra capacity in their area should be chosen for investment, with proposals to fund shovel-ready projects underpinning the move to a net zero economy.
In favor of the UK's 2050 net zero goal, funding bids will be judged on value for money, short-term grid capacity usage and how fast the infrastructure and solutions will be achieved.
The financing will be partially sourced from current allowances from network companies, where they have delivered efficiencies from the RIIO-ED1 price control period.
These current funds, as well as newly generated funds, will be transferred to support fast-track investments in network capacity in areas where it will support green developments, with investments aimed at the most productive initiatives, i.e. flexibility, solutions for whole systems and spending on 'least-regrets'.
ENA Chief Executive David Smith said: “The prime minister has given a very clear direction that the economic recovery from COVID-19 is to be as green as possible – we are incredibly proud to be making that a reality.
“Our energy network operators have already helped turn Britain into a superpower of renewable energy. With this backing from Ofgem and the government, we can ramp up the network investment to support not only renewables but battery storage, electric vehicles, heat pumps and all of the other technologies we will need to achieve our net zero future.”
A list of possible locations that have been found across their network would be given by each distribution network provider, where early network capacity investment could benefit local improvements and initiatives.
Energy Minister Anne-Marie Trevelyan added: “The UK’s energy system is one of the most advanced in the world and through the prime minister’s Ten-Point Plan and our Energy White Paper, we are ensuring that it is also the greenest so we can eliminate our contribution to climate change.
“Unlocking investment in the grid is vital to speed up the development of clean, green technologies that cut emissions and create thousands of jobs as we build back greener.”