Ofgem approves £155m new green recovery spend by DNOs

More than 200 projects to install electric vehicle charging points across the UK have been approved as part of a £300 million green recovery scheme.

Electricity distribution network operators (DNOs) submitted £366 million of projects to Ofgem in February. The regulator today (24 May) announced it had approved £300.5 million of these – of which just over half (£155.7 million) is new funding. The funds will be spent over the remainder of the RIIO-ED2 price control, which ends in April 2023.

The work will see motorway service areas and key trunk road locations get the cabling they need to install 1,800 new ultra-rapid charge points, tripling the current network. A further 1,750 charge points will be supported in towns and cities across the UK.

All six DNOs were successful in receiving funding, with Northern Powergrid, SP Energy Networks and SSEN granted new money.

The announcement follows the publication of research from Ofgem last week which found that 36 per cent of the households that do not intend to get an electric vehicle (EV) are put off by a lack of charging points near their home.

The projects will see cities like Glasgow, Kirkwall, Warrington, Llandudno, York and Truro benefit from increased network capacity to support EVs. Investment also covers more rural areas with charging points for commuters at train stations in North and Mid Wales and the electrification of the Windermere ferry. A full breakddown can be seen here.

Ofgem chief executive Jonathan Brearley said: “In the year that Glasgow hosts the COP26 climate summit, the energy networks are rising to the challenge and working with us and partners to accelerate projects that can start now, benefiting consumers, boosting the economy and creating jobs.”

The projects were put forward following a call for evidence organised by the Energy Networks Association, which sought input for local authorities and other key stakeholders to identify key areas of investment.

ENA chief executive David Smith said: “With just a few months left until COP26 we are delighted to have been able to bring forward such a crucial enabler of the prime minister’s green recovery ambitions. Delivering a green recovery for seas, skies and streets, over £300 million of electricity distribution network investment will enable wide-ranging projects which help tackle some of our biggest net zero challenges, like electric vehicle range anxiety and the decarbonisation of heavier transport.

“This new funding shows the social, economic and environmental benefits that can be brought forward by industry working closely with a flexible regulator.”

The announcement was also welcomed by transport minister Rachel Maclean, who said it would “greatly improve the resilience of our charging network as we build back greener”.

Sul Alli, director of strategy and customer service at UK Power Networks, which had 86 projects worth £66 million approved, said: “Electricity networks are on the front line of this exciting green revolution. This investment demonstrates what we can achieve by working together as an industry with the support of government and our regulator, Ofgem. The investment in network capacity is going to facilitate a number of low carbon technologies to connect contributing to improved air quality and helping to reduce carbon emissions within our regions, as well as promoting jobs and economic recovery.”

SSEN Distribution had 12 proposals approved, at a total investment value of £40.92 million.

Managing director Chris Burchell said: “The green recovery scheme provides a blueprint for future agile investment in our networks in the coming years, where rapid progress will be required to keep pace with net zero.  By undertaking £40 million in strategic network investment now, we are helping unlock innovative low-carbon projects at the right time, boosting local economies and supporting communities to achieve their net zero ambitions.”