Ofgem fast-tracks £4bn energy investment

New rules being introduced by Ofgem are set to enable renewable energy projects to connect to the grid faster.

The regulator said its new Advanced Procurement Mechanism will allow early access to almost £4 billion of investment for crucial transmission equipment and services.

Under the scheme, transmission owners will be able to buy essential equipment, such as switchgear, cables and steel, years in advance of when it is needed.

Ofgem said the streamlined process will ensure green-lit projects are ready to break ground as soon as planning approval is granted, and avoid delays, control costs and attract international investment in the drive to net zero.

Akshay Kaul, Director General, Infrastructure, for Ofgem said the mechanism is an “innovative model that could be extended in the future to develop other areas of the energy sector”.

“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,” he said.