British renewable energy projects will be connected quicker thanks to new Ofgem rules granting early access to almost £4billion of investment for crucial transmission equipment and services.
The regulator’s new Advanced Procurement Mechanism (APM) will unblock supply chains by allowing Britain’s 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 will 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.
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 for trailblazing projects to move forward.
“The Advanced Procurement Mechanism is an innovative model that could be extended in the 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.
“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: "This fast-track measure means we can quickly get Britain building the infrastructure we need to deliver clean power by 2030 and an energy system that can bring down bills for households and businesses for good
"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, and protect billpayers by keeping costs down.
"This builds on our work to reform our broken planning system to speed up renewable energy projects like wind farms, and to overhaul the grid connections queue to connect clean power projects quicker."
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