UK Energy Regulator Seeks $10.2 Billion Fund to Aid Green Targets

  • Britain’s energy regulator Ofgem said it had begun consultations over a new investment fund of up to 8 billion pounds ($10.16 billion) that could help the country’s net zero prospects.
  • The regulator also added that the fund, consultation for which will run until December 18, would help the government achieve clean power by 2030 and net zero targets eventually

Britain’s energy regulator Ofgem said it had begun consultations over a new investment fund of up to 8 billion pounds ($10.16 billion) that could help the country’s net zero prospects and aid energy transmitters to cut delays and costs.

The proposed fund, worth between 5 billion pounds and 8 billion pounds, would provide allowances for transmission owners to buy in advance equipment such as switchgear, cables and steel, thereby accelerating deliveries of projects, Ofgem 

The regulator also added that the fund, consultation for which will run until December 18, would help the government achieve clean power by 2030 and net zero targets eventually, among other things.

The consultation comes after Ofgem said last month it would offer developers of renewable energy storage projects a guaranteed minimum income to spur investment in technologies that would help Britain meet its climate targets.

This could see the first significant long-duration energy storage (LDES) facilities in nearly four decades, helping to create backup renewable power and bolster the UK’s energy security. 

These technologies work like giant batteries by storing renewable energy and releasing it onto the grid and into homes when needed. This includes pumped storage hydro, which stores electricity by pumping water up a reservoir to be released later. 

Ofgem has proposed that it would be clear in its rules to ensure that the latest fund is used only for intended purposes, and that any unused allowances would be returned to consumers so as to minimise any impact on their energy bills.

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