Ofgem has unveiled proposals to rewire Britain at a local level to create a “greener and fairer energy system” under the latest electricity distribution network price controls.
The regulator said its ‘turn your street green’ plans will enable quick and reliable upgrades to the network to meet forecasted increases in local demand for electricity.
The proposals for the 2023 to 2028 period also aim to unlock to investment and secure the capacity to support up to 11 million electric vehicles projected to be on the road by 2030 and increased demand for heat pumps.
In line with the approach to the wider RIIO-2 price controls announced recently Ofgem said it would expect to see lower returns for investors to keep the costs as low as possible for consumers.
Companies will be required to increase their capacity using flexible solutions such as battery storage instead of building new network capacity.
The plans include a £450m strategic innovation to help drive more research and development into green energy.
Ofgem’s Chief Executive Jonathan Brearley said: “Local electricity networks will be at the forefront of eliminating harmful carbon emissions from the country, helping tackle climate change, so it’s vital they have the investment they need to do this whilst keeping costs as low as possible for consumers.”
David Smith, Chief Executive of Energy Networks Association, said: “Although the proposals outlined will take time to review in detail, we will continue to work with Ofgem to make sure that this vital investment can be delivered, securing economic and societal benefits now as we look to recover from the effects of the pandemic.”