The projects are part of the Accelerated Strategic Transmission Investment (ASTI) framework, Ofgem’s streamlined process will help achieve the Government’s clean power goals including connecting 43 – 50GW of offshore wind by 2030
The funds will be used to finance early procurement of materials in high demand around the world such as HVDC cables. With many countries around the globe seeking to decarbonise their grids, competition for such resources is fierce.
Ofgem’s ECF mechanism enables Transmission Operators (TOs) to get their orders in at the earliest opportunity and reduces the risk of costly procurement delays. ECF is also used to finance associated enabling works such as land purchases and surveys.
Beatrice Filkin, Ofgem Director of Major Projects, said:
“Today’s decision means that we’ll be able to power more homes with homegrown clean power faster.
“Releasing early investment to suitable projects equips British Transmission Operators (TOs) to compete globally, avoid delays caused by supply chain constraints and secure the sought-after materials and components to boost our energy security and power our homes and economy.
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She added: “It’s important to underline that we are not handing projects blank cheques nor greenlighting the projects themselves – these are rightly decisions for the relevant planning authorities.
“We work with the TOs to ensure intelligent use of early investment, so that any losses are minimised, if projects are altered, cancelled or refused permission, and any unspent money is returned to consumers. TOs must also show us how the things they spent money on are expected to benefit consumers – if they can’t, they can’t pass on those costs to billpayers.”
ASTI was launched by Ofgem in late 2022. It identified 26 projects key to achieving Government decarbonisation targets and reducing Britain’s exposure to volatile international gas prices. The projects will enable more homegrown power to be harnessed and supplied to consumers, while also driving down the costs currently incurred when, for example, wind generators are paid to stop generating because there isn’t the grid capacity for their energy.
