Ofgem Provides £1 Billion Boost for U.K. Grid Overhaul

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--A further £1 billion ($1.62 billion) investment could be in the cards to overhaul the United Kingdom's electricity grid and speed up the connection of renewable power projects.

The country's energy regulator Ofgem has released an initial £319 million ($517 million) in funding and said that it will consider the request from the transmission companies for another £764 million ($1.23 billion). The first tranche of investment is targeted at getting new high-voltage networks in place to allow renewable power projects to be connected faster. Upgrading the electricity network is seen as vital in enabling the U.K. to meet its 2020 carbon emissions targets.

In September of last year, the government admitted that it takes too long for many power projects to be connected to the national grid, particularly renewable power projects such as windfarms. At the time, 60 gigawatts (GW) of generation capacity, spread across 200 projects, is waiting to be connected to the national grid, including about 17 GW from renewable sources. The government proposed a faster consultation process. For additional information, see related news item from September 1, 2009 - Faster Grid Connection for U.K. Renewable Power.

The £1 billion package is in addition to the £3.8 billion ($6.1 billion) investment that Ofgem approved for the three existing electricity transmission companies to spend on network upgrades.

"The funding proposals will enable vital new generation, much of it renewable, to be connected to the grid," explained Ofgem Acting Senior Partner for Transmission and Governance, Stuart Cook. "Ofgem has been working with industry to overcome delays to critical investments, and today's funding proposals mark a significant step towards facilitating the government's 2020 carbon emission reductions target."

The potential £1 billion boost represents 20% of the transmission companies' overall 10-year investment plan for network upgrades to connect new renewable generation capacity.

Urgent grid upgrade work has recently been given the green light in Scotland. This month, the Scottish government approved the controversial 220-kilometre Beauly-Denny electricity transmission line. For additional information, see January 7, 2010, article - Scotland Approves Major Power Transmission Line Upgrade.

Ofgem has stated that it may consider further funding for the following projects, which are scheduled to begin construction in 2010 and 2011: the Hunterston-Kintyre link, the Western Isles link, and a Shetland link that includes an offshore hub.

IIR's Renewable Energy Database provides extensive coverage on the Wind Energy, Geothermal, Hydroelectric, Landfill Gas-to-Energy and Utility-Scale Solar power plants throughout North America, and is now expanding coverage across the world.

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