Clean Tech Scotland

The energy regulator Ofgem has proposed funding arrangements of up to £1 billion over the next two years for green electricity transmission grid projects, with seventy percent said to go to Scotland.

Transmission companies have put forward proposals for over 20 investment projects to be delivered over the next ten years totalling £5bn.  If Ofgem’s proposals are accepted it would enable them to spend 20% (£1bn) and recoup costs through consumers and transmission charges.

Ofgem chief executive Alistair Buchanan said, ‘Ofgem has put forward a plan that could inject up to £1bn into national electricity grid investment. This is needed urgently to handle growth in wind power and other renewable generation that is arising from Britain’s drive to curb climate changing emissions.

‘Our proposals provide a common-sense solution that meets urgent investment needs. And it holds off on decisions that could place an unwarranted burden on consumers through over generous allowances. Once the next review of the industry’s transmission revenue allowances is underway we will be able to look at the rest of this investment,’ he added.

With almost three quarters of the £1bn earmarked for Scotland, this is certainly encouraging news for Scotland, Scottish Hydro Electric Transmission Ltd and the controversial Beauly-Denny transmission line.  This proposal will further encourage additional investment in projects like the Pentland Firth Project, Great Glen and offshore wind farms.

Scottish Secretary Jim Murphy said: “It’s full steam ahead for the Pentland Firth, which can power up to 500,000 homes. We are now on track to have the biggest wave and tidal project in the world on our doorstep”

Ofgem is the Office of the Gas and Electricity Markets, which supports the Gas and Electricity Markets Authority, regulator of the UK gas and electricity industries.