UK to promote grid investment for renewables

10 May 2004 – UK gas and electricity market regulator Ofgem said Friday it intended to develop proposals to allow additional investment in the electricity transmission network as demand for renewable generation increases.

The proposed adjustment mechanism to the existing price control for electricity transmission companies will cover the period up until the next price control reviews in 2007/2008. Key to the proposed mechanism will be the need to promote efficient and timely investment, while at the same time protecting the interests of customers.

In developing the proposed adjustment mechanism, Ofgem has engaged independent consultants to review plans by transmission companies for new network investment, and the cost of the proposed upgrades to the transmission networks.

Ofgem has a consultation document setting out options for the proposed mechanism. The closing date for responses is 11 June 2004.

Increases in renewable generation connection applications are now arising in response to the Government’s Renewables Obligation aimed at securing ten per cent of electricity generated from renewable sources by 2010.