Ofgem Unveils £8bn Fund to Tackle Switchgear and Supply Bottlenecks
This £5-8 billion fund aims to fast-track the procurement of critical energy transmission infrastructure.
Image for illustration purposes.
Key aspects of the APM include:
1. Early material purchases: Transmission owners can buy essential components like switchgear, cables, and steel before finalising project details.
2. Supply chain resilience: Reducing reliance on just-in-time supply chains to prevent disruptions and control cost inflation.
3. Cost control: Addressing escalating construction costs by purchasing materials ahead of time.
4. Consumer protection: Operating as a “use-it-or-lose-it allowance” to ensure funds are spent only on necessary procurements.
5. Risk mitigation: Focusing on versatile equipment usable across multiple projects to avoid stranded assets.
The APM aligns with recommendations from the National Energy System Operator (NESO) and supports the UK’s 2030 clean power target. Ofgem infrastructure director general Akshay Kaul emphasised the urgency of meeting clean energy goals amidst global supply chain pressures.
Source: Sustainable Times
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