British energy regulator Ofgem has given provisional approval for a 24 billion pound ($32.98 billion) investment programme for the country’s electricity and gas networks, it said on Tuesday.
Britain has a target to decarbonise its power sector by 2030, which will require many more renewable power plants such as wind and solar and an upgrade to its grid to accommodate them.
“This record investment will deliver a homegrown energy system that is better for Britain and better for customers. It will ensure the system has greater resilience against shocks from volatile gas prices we don’t control,” Ofgem CEO Jonathan Brearley said in a statement.
Ofgem said funding will allow for 80 transmission projects, with 15 billion pounds to be spent on upgrading the country’s gas network and 8.9 billion on expanding the electricity network.
Under Britain’s regulatory framework, gas and electricity network companies must submit project plans and expected costs of investment.
Ofgem then decides whether to approve such plans and estimates the level of return on projects the developers can receive.
Consumers pay for the investment through network charges, which currently make up almost a quarter of an average household energy bill.
Ofgem said once savings from the projects were factored in, the investments would add around 24 pounds a year to the average household bill by March 2031.
Britain’s energy infrastructure is owned by several firms, including SSE, National Grid and Iberdrola’s Scottish Power.
(Reporting by Susanna Twidale in London and Raechel Thankam Job in Bengaluru)
