DEPARTMENT OF ENERGY
AND CLIMATE CHANGE News Release (2009/024) issued by COI News
Distribution Service. 4 March 2009
Investment worth
up to £4.7 billion is expected to be needed to upgrade the
electricity grid network to accommodate new power generation by
2020, according to a report published today by the Electricity
Networks Strategy Group (ENSG).
In what will be the largest single expansion of the grid since
the early 1960s, up to 1,000 km of new cables will be needed to
ensure new renewables and nuclear power stations can be connected
to the electricity grid.
As part of the UK's commitment to move towards a low carbon
energy supply, it is expected the UK will need to generate around
30% of its electricity from renewable sources by 2020 as well as
encouraging the development of new nuclear plants.
The report, which was produced by the industry under the auspices
of the ENSG, says connecting up to 35GW of renewable and up to
10GW of new nuclear power will require a major upgrade of our
electricity networks.
It concludes that work needs to start
now to upgrade the existing grid and includes proposals for high
voltage subsea cable links between Scotland and England.
Energy and Climate Change Minister Mike O'Brien said:
"This report marks the start of the electricity grid's
makeover to accommodate new low carbon power generation which is
needed by 2020.
"This is a massive long term investment opportunity and this
upgrade work will help support jobs across the low carbon economy.
"Having a grid which is fit for purpose is vital for our
ambitions to cut carbon emissions and increase security of supply."
Ofgem has in recent days announced it intends to approve the
funds needed to begin the pre-construction work on specific
transmission projects that are due to start work soon. Ofgem is
continuing to develop proposals to make the regulatory regime
capable of meeting the challenges presented by the 2020 renewable
energy targets.
The report is the latest piece of work to come from the
Transmission Access Review (TAR) which will ultimately reform the
electricity grid structure for 2020.
The TAR, published alongside the Renewable Energy Strategy
consultation, is helping to create faster grid connections for
power projects.
Thomas Lingard, Deputy Director of Green Alliance said:
"The ENSG report conveys a welcome sense of urgency
regarding the investment required to put us on track to meet our
2020 emissions reduction targets. Ensuring we have a grid to
support our emerging renewable infrastructure is essential to the
decarbonisation of our electricity supply, and therefore our
economy."
Nick Winser, executive director of transmission
at National Grid said:
"With the move to a low carbon economy being critical to all
our futures, this work shows just how important it is for
government, Ofgem and the energy industry to all work together
with common purpose. We've always had a reliable well
invested electricity network in this country, but the report marks
a step change in the UK's energy revolution, showing the key
new strategic investments we need to make to the transmission
system. We are proud to have played a key role."
Ofgem Chief Executive, Alistair Buchanan, said:
"Getting the right electricity infrastructure in place so
more renewable generators can connect is critical if the UK is to
meet challenging new renewable targets. Ofgem has been proactive
in this area by approving major increases in investment in the
electricity networks, including the £5 billion for network
upgrades and renewal between 2007 and 2012. The industry report
proposes the use of technology so far unused in this country.
This demonstrates a willingness to consider innovative solutions
which could lead to faster build times and avoid the need to
secure planning permission for onshore lines. We will continue to
work with the industry to develop appropriate incentives to
encourage efficient and effective innovation."
David Green, Chief Executive of the UK Business Council for
Sustainable Energy said:
"Delivering the infrastructure that will be needed to put
the UK on track to significant carbon reduction means that
investing now in the transmission and distribution system is
vital. This report is a welcome step forward - with the potential
to significantly boost the UK's generation of green jobs"
Also, DECC and Ofgem are leading a project to put a new
regulatory regime in place to connect offshore wind projects to
the onshore grid in the most cost effective way. A final
consultation on the plan is expected shortly.
Notes to Editors:
1. The ENSG provides a high level forum which brings together key
stakeholders in the electricity supply industry to support
Government in meeting our long-term energy challenges. The Group
is chaired jointly by DECC and Ofgem. Full membership and terms
of reference can be found at http://www.ensg.gov.uk
2. Access to the electricity network and delivering new
transmission infrastructure are among the critical barriers to the
increased deployment of renewable and other forms of generation in
Great Britain.
3. The Final report of the "Transmission Access Review"
http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=84&refer=NETWORKS/TRANS/ELECTRANSPOLICY/TAR
- sets out a comprehensive set of measures which taken together,
DECC and Ofgem believe will remove, or significantly reduce, the
barriers to all forms of generation gaining access to the grid and
so speed up the connection of new generation. These measures
include the development by Ofgem of appropriate financial
incentives to deliver the new network needed to meet the 2020
renewables target.
4. The delivery of specific proposals for the reinforcement
and/or expansion of the GB transmission network are the
responsibility of the Transmission Licensees and will be subject
to the appropriate regulatory and planning processes.
5. The final report will be available here later today: http://www.berr.gov.uk/files/file50333
(please call press office in the meantime for a pdf of the report)
Department of Energy and Climate Change
7th Floor, 3
Whitehall Place, London, SW1A 2HD
Public enquiries +44 (0)300
060 4000
Textphone +44 (0)20 7215 6740 (for those with hearing impairment)