United Kingdom: Ofgem Seeks to Unlock Efficient Transmission Investment for a Greener Future
Ways of allowing early efficient investment in the high-voltage electricity network to meet the UK government's challenge of developing a low-carbon economy have been put forward by Britain's energy regulator Ofgem.
Meeting the government's targets for renewable energy may require significant investment in the transmission network. The government's aim is for renewables to provide 10% of UK electricity supplies by 2010 and 20% by 2020. To support this, the government has put in place programs like the Renewables Obligation, which encourage suppliers to purchase a percentage of their electricity from renewable sources.
Ofgem is consulting on ways of allowing efficient investment to start now in upgrading the high-voltage transmission system rather than wait until the next price control.
Ofgem's managing director of competition and trading arrangements, Boaz Moselle, said, “We are seeking views on how to allow transmission companies to start efficiently investing in the transmission network to support the government's planned expansion of renewable generation.”
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