Ofgem is consulting on introducing a new £5-8 billion investment fund that will help Britain's energy transmission owners cut delays, control costs and beat other nations to attract international investment in the drive to net zero.
The regulator's new Advanced Procurement Mechanism (APM) would provide billions of pounds in allowances for transmission owners to buy essential equipment - such as switchgear, cables and steel - years in advance of when it is needed, and often before their project has been finalised.
This streamlined process would ensure green-lit projects are ready to break ground as soon as planning approval is granted, with the key construction equipment already in place.
Advantages to this first-of-its-kind framework include:
· Reduced risk of costly supply chain delays as global demand for vital infrastructure materials increases
· Lowering or controlling build costs by purchasing materials in advance, as supply and demand steadily raises prices year on year
· Supporting growth in domestic manufacturing and attracting international investment to British projects
· Accelerated project delivery which will help government achieve clean power by 2030, and subsequent net zero targets after that
For more information please see the full press release linked here: www.ofgem.gov.uk/publications/fast-track-funding-give-britain-head-start-global-race-clean-power-parts
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