The UK’s energy regulator, Ofgem, has launched consultations on a new investment fund worth up to £8 billion aimed at accelerating the country’s progress towards net zero goals and helping energy transmitters reduce delays and costs. This proposed Advanced Procurement Mechanism (APM) could significantly impact the energy landscape in Britain.
For companies like Undertwok, which specialises in portable solar panels and batteries while promoting sustainable energy consumption, this development presents exciting opportunities. The fund’s focus on supporting net zero initiatives aligns well with our mission to live under 2 kWh per person per day.
Key aspects of the proposed investment fund include:
The APM aims to ensure that greenlit projects can commence as soon as planning approval is granted, potentially cutting connection delays and streamlining the development of energy infrastructure. This could lead to faster integration of renewable energy sources into the grid.
For businesses in the energy industry, this fund represents a significant opportunity to accelerate their projects and reduce costs associated with delays and supply chain issues. It could also stimulate innovation in energy transmission and storage technologies, creating new markets for companies developing cutting-edge solutions.
Companies outside the energy sector should also take note of this development. As the UK moves towards its net zero goals, businesses across all industries may need to adapt their operations to align with more sustainable energy practices. The increased investment in energy infrastructure could lead to more reliable and efficient power distribution, potentially reducing energy costs for businesses in the long term.
Moreover, the fund’s emphasis on domestic manufacturing growth could create new opportunities for businesses in the supply chain and manufacturing sectors. This could lead to job creation and economic growth in regions focused on green energy production and distribution.
As the consultation process unfolds, businesses should stay informed about the potential impacts of this investment fund on their operations and future planning. For us, this development highlights the growing importance of sustainable energy solutions and the potential for expansion in the renewable energy market, and we are on it.
References
Committee on Climate Change (2024) Progress Report to Parliament 2024, CCC, London.
IEA (International Energy Agency) (2024) World Energy Outlook 2024, IEA, Paris.
IRENA (International Renewable Energy Agency) (2024) Renewable Power Generation Costs in 2023, IRENA, Abu Dhabi.
National Grid ESO (2024) Future Energy Scenarios 2024, National Grid ESO, Warwick.
Ofgem (2024a) ‘Consultations’, Ofgem. Available at: https://www.ofgem.gov.uk/engagement/consultations (Accessed: 27 November 2024).
Ofgem (2024b) ‘Ofgem proposes new investment fund for transmission owners’, Current News. Available at: https://www.current-news.co.uk/ofgem-proposes-use-it-or-lose-it-investment-fund-for-transmission-owners/ (Accessed: 27 November 2024).
Ofgem (2024c) ‘Strategic Innovation Fund (SIF)’, Ofgem. Available at: https://www.ofgem.gov.uk/energy-policy-and-regulation/policy-and-regulatory-programmes/network-price-controls-2021-2028-riio-2/network-price-controls-2021-2028-riio-2-riio-2-network-innovation-funding/strategic-innovation-fund-sif (Accessed: 27 November 2024).
UK Government (2023) Net Zero Strategy: Build Back Greener, HM Government, London.
Wood Mackenzie (2024) Global Energy Transition Outlook 2024, Wood Mackenzie, Edinburgh.
