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UK regulator accelerates $5.2 billion in energy grid investment

UK regulator accelerates $5.2 billion in energy grid investment

The UK's energy regulator announced on Monday that it would increase investment by 4 billion pounds ($5.19billion) to accelerate the development of the electricity grid in the country and improve the chances of meeting the country’s clean energy targets.

Ofgem, the regulatory body for companies that build and run the transmission network, stated the funding would allow them to overcome difficulties in the supply chain by providing financial flexibility.

Akshay Kaul of Ofgem, director-general for Infrastructure, said that there is unprecedented pressure on global supply chain as many nations increase their efforts to decarbonise energy systems.

Kaul stated that it was vital to help electricity transmission owners to move quickly and to procure at scale as soon as possible in order to reduce financial risks. This would also show the global supply chains that Britain is dedicated to investing in their energy networks.

Three transmission companies are in Britain: National Grid Electricity Transmission (NGET), Scottish and Southern Electricity Networks Transmission (SSEN) and SP Energy Networks.

The Labour Party's government has been working across sectors to ensure that regulators are more focused on taking measures to generate economic growth.

The National Energy System Operator described the goal as "a huge challenge".

Michael Shanks, junior energy minister, said: "This fast track measure will allow us to quickly build the infrastructure that we need in order to provide clean power by 2030."

(source: Reuters)