Step-change in power networks investment ‘vital’

A step change in investment in local electricity networks is vital to ensure lower long term energy costs and deliver on the Government’s growth mission, according to a new report.

The National Infrastructure Commission report said that with demand for electricity set to double by 2050, the current pace of additional investment in the country’s electricity distribution networks must also double to ensure the system can cope.

However, it warned that current regulation by Ofgem is “too complex” and doesn’t encourage distribution network operators (DNOs) to make the proactive investments needed to boost network capacity and provide resilience to future climate impacts.

The report calls for a more proactive approach to both energy regulation and system planning.

Sir John Armitt, Chair of the National Infrastructure Commission, said: “We must learn the lessons from playing catch-up on transmission grid expansion and get ahead of the curve on investing in our local networks, so people can enjoy the benefits of electric vehicles and heat pumps safe in the knowledge the network will back them up, and businesses can connect where and when they need to.”