Ofgem has approved an initial £24bn investment in Britain’s energy networks that could see consumer bills rise to cover the cost.
The regulator said the funds will be used to make the grid more robust amid an influx of new renewable energy facilities and greater energy demand from data centres and the electrification of industrial processes.
Over £15bn will be invested in Britain’s gas transmission networks to ensure ongoing safe and secure supplies to households, while an £8.9bn investment is being committed to Britain’s high-voltage electricity network. A further £1.3bn will go towards expanding the grid.
The queue for connecting new projects to the grid is massively oversubscribed and being held up by stalled or speculative projects – some of which are not even at the construction phase. But with the government planning to decarbonise the grid entirely by 2030, grid capacity will need to be ramped up quickly to meet demand.
Ofgem said its latest package will see investment in the grid...