Britain’s energy regulator, Ofgem, has announced the launch of consultations for a new investment fund worth up to £8 billion ($10.16 billion). The fund aims to bolster the UK’s net-zero ambitions by enabling energy transmission companies to reduce project delays and costs.
Valued between £5 billion and £8 billion, the proposed fund would allow transmission owners to pre-purchase essential equipment such as cables, switchgear, and steel, expediting the delivery of energy infrastructure projects, Ofgem stated.
The consultation, open until December 18, aligns with the UK government’s goal of achieving clean power by 2030 and meeting broader net-zero targets.
The proposal follows Ofgem’s announcement last month of guaranteed minimum incomes for renewable energy storage developers to incentivize investment in technologies vital for the country’s climate objectives.
Ofgem also emphasised the fund’s accountability measures, proposing strict rules to ensure it is used exclusively for its intended purpose. Any unused allowances will be returned to consumers to minimise the impact on energy bills.
