£24bn spend to boost energy security gets green light

A £24bn investment programme to boost energy security and unlock more renewable generation has been given the provisional green light.

Ofgem said over £15bn of the spend will ensure the continued safe operation of gas transmission and distribution networks.

An initial £8.9bn investment is also being committed to Britain’s high-voltage electricity network, with a further £1.3bn ready to go to power the biggest expansion of the electricity grid since the 1960s. 

Ofgem said the draft settlement is the first step in an estimated £80bn investment programme boosting electricity network capacity, protecting UK households from the volatile international gas markets that caused the massive fluctuations in energy bills in recent years.  

The investment will allow for 80 transmission projects and associated works right across the country to be completed within five years.

Ofgem CEO Jonathan Brearley said: “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.”