• REA welcomes new Ofgem approach
• £300 million to be made available for investment in electricity distribution network capacity
• REA says that this will provide a stimulus to the ‘green’ recovery, but a clear route to market is needed

The REA have welcomed the announcement that £300 million is to be made available for investment in electricity distribution network capacity across Great Britain in a Green Recovery Scheme.

The ENA and Ofgem have produced the proposals which the REA say could be a much-needed stimulus.

However, while positive about the new approach to grid investments and the anticipatory nature of the scheme, Frank Gordon, the REA’s Head of Policy, says that a clear route to market for all projects remains a long-term necessity.

Frank Gordon, Head of Policy of the Association for Renewable Energy and Clean Technology (REA), said:

“The REA welcomes this new approach to grid investments and the anticipatory nature of the scheme. Unlocking £300 million worth of investment in electricity development network capacity across the UK will provide a real stimulus in this area as we look towards a ‘green’ recovery.

“This will have a directly beneficial impact on the energy transition and meeting the UK’s net zero targets – we will certainly be encouraging our members and the industry as a whole to examine the proposals and respond.

“However, while we are pleased with this initiative, and look forward to further work in this area, a clear route to market for all projects remains a necessity for the longer term. If we can marry this significant investment with that clear route to market, it will have a transformative effect for the energy sector and the wider UK economy.”

Expenditure will be met from existing RIIO-ED1 allowances, except where a DNO is forecasted to exceed the allowance in aggregate over the 8-year price control period up to March 2023 – new funding will then be permitted with an agreed cap and separate regulatory arrangements.

The funding will be allocated to the most efficient projects that offer flexibility, whole-systems solutions and least-regrets cost, to help fast-track network capacity investment where it will support green development. A priority order of investment will be created and implemented over 2-3 years.

A Call for Evidence has been launched and is open until 19 March, to enable stakeholders to make the case for why extra capacity in their area should be chosen for reinforcement:

• Projects should be ‘shovel-ready’
• The funding is aimed at projects that are struggling to be justified due to network reinforcement costs
• The funding will not support third party/project equipment, nor the sole-use connection assets
• The funding is not open to projects in progress

The ENA plans to announce the shortlist of sites in mid-May.

—ENDS—

For more information or to request an interview, please contact:

Jack Abbott, PR and Communications Manager,

07590 627739/ [email protected]

About the Association for Renewable Energy and Clean Technology (REA)
The Association for Renewable Energy and Clean Technology (known as the REA) is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, power and the Circular Economy. The REA is a not-for-profit organisation representing fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.

For more information, visit: www.r-e-a.net