Jonathan Brearley
Chief Executive, Ofgem
Ofgem’s provisional approval of £24 billion for Britain’s energy networks marks a pivotal moment in a cleaner energy future and the first step in a £80 billion electricity network investment programme.
By unlocking the finance required to move green energy into the grid, we’re showing that regulation isn’t stifling progress; it’s driving it.
Unprecedented grid investment
Beyond stabilising bills, investment in the grid can help protect consumers from the global shocks we’ve been vulnerable to in the past. As industries adopt energy-intensive technologies like AI, upgrading the electricity grid to support domestic power generation will be essential to unlock full economic potential. The scale is unprecedented. This investment will fund more than 80 transmission projects, 4,400km of upgraded lines and 3,500km of new circuits, unlocking up to 126 GW of clean power by 2030.
Ofgem’s scrutiny ensures
value for money for billpayers.
Storing power for stability
Ofgem is also driving forward the first major investment in Long Duration Electricity Storage for 40 years. These systems store electricity, making them useful when wind and solar power drop. They’ll act as a backup for the grid and help reduce the need for ‘constraint costs’ — the money paid to windfarms to stop generating when there’s more electricity than the grid can handle.
That’s not just capacity, it’s capability. It’s the infrastructure that will allow wind farms in Scotland and solar parks in the South of England to power homes across the UK without bottlenecks or waste. By the end of this investment period, consumers will benefit from a more stable energy system that protects families’ and businesses’ energy bills from geopolitical events beyond our control.
Keeping consumers first
Ofgem’s scrutiny ensures value for money for billpayers; we bear down on costs while maintaining the required pace of change. Through our network regulation, we ensure only the necessary costs of the system are recovered, and we will continue to base these decisions on consumers’ best interests.
The energy transition isn’t optional; it’s inevitable, and an area in which Great Britain can be a world leader. The provisional approval of this funding is a bold step forward for the transition. We must ensure it becomes a reality.
