This item was published during the term of a previous administration that ended in April 2007
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Renewables to benefit from Ofgem proposals
12/08/2004
The energy regulator Ofgem has proposed removing
existing constraints limiting investment by electricity
transmission companies to upgrade the network.
These new proposals will help to ensure that Scottish
renewable energy sources can be fully exploited.
Deputy Enterprise Minister Lewis Macdonald said:
"This is a clear green light from the regulator for
the network upgrades required to fully exploit Scotland's
green energy potential. Upgrading the electricity grid is
essential if the renewable energy sector is to reach its
full potential and we have continually pressed the
regulator for progress to take this vital work forward.
Therefore, I welcome Ofgem's intention to introduce a new
regulatory mechanism which will fund the network upgrades
that will help to release the rich renewable energy
resources that our country possesses.
"These upgrades will play a central role in the
expansion of the renewable energy sector, helping us to
meet our renewables targets, create new jobs and help
protect our environment by reducing emissions and tackling
climate change.
"For our part, we will continue to work with the
regulator, the UK Government and the industry to assess the
full implications for the electricity network of our energy
objectives, to develop the case for new power connections
in the most effective and rational way and to co-ordinate
the development of the supporting work necessary."
Ofgem has today issued a consultation document
"Transmission Investment for Renewable Generation - Initial
Proposals" which sets out proposals for a new mechanism to
fund the upgrade of the Scottish transmission system.
In Scotland, increases in renewable generation require
investment in the electricity transmission networks, which
go beyond the investment allowed under the current price
control for the three transmission companies in Great
Britain - National Grid Company, Scottish Power
Transmission Ltd and Scottish Hydro Electricity
Transmission Limited.
Today's proposals for transmission investment for
renewable generation open the way for investment to upgrade
the transmission network, when approved, ahead of the next
transmission price controls which are due to start in
2007.
Copies of the consultation document and accompanying
press release are available on the Ofgem website at
www.ofgem.gov.uk