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Ofgem proposes $32.4 B to transform Great Britain’s energy networks

UK: Ofgem has unveiled proposals for a five-year investment program of around $32.4 B (£25 B) to transform Britain’s energy networks to deliver emissions-free green energy for Great Britain along with world-class service and reliability.

Investment in the networks that transport energy round Great Britain is likely to rise to ensure they can deliver clean energy and meet government targets for a net-zero emissions Great Britain. This investment will also help generate green growth and employment.

Jonathan Brearley, Ofgem’s chief executive, said, “Ofgem is working to deliver a greener, fairer energy system for consumers. This is why we are striking a fair deal for consumers, cutting returns to the network companies to an unprecedented low level while making room for around $32.4 B of investment needed to drive a clean, green, and resilient recovery.”

Ofgem is allocating $32.4 B upfront expenditure to maintain and operate Great Britain’s gas distribution and gas and electricity transmission networks as well as support the growth of green energy.

Ofgem is also proposing to unlock significant additional funding of another $12.9 B (£10 B) to drive green emissions-free energy and infrastructure upgrades that companies can access over the next five years as needed.

A new Strategic Innovation Fund, together with funding to individual companies for network innovations, will provide $817.1 M (£630 M) to drive research and development in crucial green energy projects and help expand the range of possibilities for decarbonising the heat infrastructure, such as hydrogen, with the potential to fund more if needed.

Source: T&D World