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Ofgem has kicked off plans to upgrade Scotland's aging grid
networks in a bid to accommodate a new generation of renewable
energy projects, such as wind turbines and marine energy parks.
The UK energy regulator last week launched a consultation
outlining how two separate transmission projects, planned
by ScottishPower and SSE, could be funded and delivered over
the next decade, boosting Scotland's high-voltage grid infrastructure.
The £7bn proposals will be fast tracked under Ofgem's new
Revenue= Incentives+ Innovation+ Outputs (RIIO) framework.
This is designed to stimulate the £32bn investment needed
to connect new wind farms and nuclear power stations to the
grid, roll out smart grid technologies, replace aging networks
and support anticipated increases in energy demand from electric
vehicles and heating systems.
ScottishPower's £2.6bn project would allow 11GW of new wind
farms to connect to the grid, potentially creating up to 1,500
jobs in Scotland over the 8-year price control period from
2013 to 2021.
SSE's transmission arm, Scottish Hydro Electric Transmission
(SHETL), has also had its plans to upgrade the transmission
network in northern Scotland fast-tracked by the regulator.
Mark Mathieson, SSE managing director of networks, welcomed
the news as a step forwards in a capital investment programme
worth between £1.1bn and £4bn.
"The fast tracking of SHETL's business plan means we can
now focus on delivery, confident that the required funding
is in place, a clear mechanism has been created to deal with
the uncertainties of investing over this time frame and an
overall positive investment climate has been established,"
he said.
The proposals announced are expected to add an extra 35 pence
a year to consumer energy bills during the price control period,
said Ofgem.
The watchdog will now consult on the plans until 19 March
and is expected to publish its final proposals in April.
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