Energy regulator Ofgem has given the go-ahead for transmission network owners to book supply chain capacity early, so that expansion of the high-voltage electricity grid can move forward faster.

The new Advanced Procurement Mechanism allows GB’s three transmission owners (National Grid ET, SSEN Transmission and SP Energy Networks) to tackle supply chain constraints by procuring essential equipment, materials and services years in advance. This will ensure projects are ready to break ground as soon as planning approval is granted. The regulator has agreed ‘use it or lose it’ capital allowances of £4 billion ahead of and during the coming 2026-2031 year price control period .

Ofgem says there are 80 transmission projects required to achieve clean power by 2030.

Akshay Kaul, Ofgem Director-General, Infrastructure said: “The Advanced Procurement Mechanism is an innovative model that could be extended in the future to develop other areas of the energy sector and possibly mirrored by other regulatory bodies supporting the delivery of national infrastructure.”
He added, “Across the world many countries are stepping up their investment in clean energy at the same time, putting unprecedented pressure on the supply chain as growing demand for essential materials forces up prices and lengthens delivery times.
“This is why it’s vital that we help the electricity transmission owners move quickly, procuring at scale as early as possible to reduce financial risk – and show the global supply chain that Britain is committed to investing in its energy networks.”