UK renewable energy projects will be connected to the electricity grid more quickly as a result of new rules from the country’s energy regulator Ofgem granting early access to almost £4bn of investment for transmission equipment and services.
Its new Advanced Procurement Mechanism (APM) aims to unblock supply chains by allowing UK electricity transmission owners (TOs) to buy essential equipment – such as switchgear, cables and steel – years in advance of when it is needed.
This streamlined process seeks to ensure green-lit projects are ready to break ground as soon as planning approval is granted, allowing TOs to avoid delays, control costs and attract international investment in the drive to Net Zero. It promises to end the current log-jam of projects that wait years for grid connectivity.
Akshay Kaul, Director General, Infrastructure, for Ofgem said, “Building a modern, clean and secure energy system is the key to ending our reliance on international gas markets responsible for volatile prices, so we must do everything we can to clear the way.”
He said the APM is an “innovative” model that could be extended in future to develop other areas of the energy sector, and possibly mirrored by other regulatory bodies supporting the delivery of national infrastructure.
“It’s a significant step on the accelerator as we drive towards Net Zero and we are committed to working with government, GB Energy and the National Wealth Fund to maximise the economic opportunities of infrastructure investment,” he added.
“Across the world many countries are stepping up their investment in clean energy at the same time, putting unprecedented pressure on the supply chain as growing demand for essential materials forces up prices and lengthens delivery times.
“This is why 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.”
Energy Minister Michael Shanks said the fast-track measure means “we can quickly get the UK building the infrastructure we need to deliver clean power by 2030.
“Giving developers a head-start in the global race to secure essential materials and equipment will help to avoid delays by putting shovels in the ground as soon as clean power projects secure planning permission,” he said.
Nicola Connelly, CEO SP Energy Networks, said the £75bn proposed investment in the transmission system is the foundation of the government’s growth ambitions, unlocking grid capacity for homes and businesses, moving homegrown clean energy around the country and reducing constraint costs for consumers.
“That’s why the speedy delivery of this national infrastructure upgrade is critical,” she said. “Securing our supply chains early for cables and other equipment is vital if we’re to re-wire Britain at record pace.”
A report from the country’s Environmental Audit Committee last year found many renewable projects are being hampered by slow connections, limited capacity, inappropriate planning regulations and market uncertainty.
Philip Dunne MP, who is Environmental Audit Committee Chair, said the UK government’s commitment to decarbonising the country’s electricity grid fully by 2035 – increasing capacity by 250% in a decade – is one of the most ambitious undertakings by any peacetime government.
“We have seen no evidence that it is achievable any earlier,” he said. “There is no lack of demand to take part in the clean energy revolution; UK businesses are queuing around the block to secure access to the grid.”
