Ofgem seeks large investment to help Britain’s electricity distribution networks support the growing presence of greener methods of heating, transport and the surge in green energy production.
The funds are needed to help local networks expand their energy-carrying capabilities in order to manage higher demand and the increase in green electricity flowing through the grid.
Unlocking the funds for a greener Britain
The funding Ofgem have proposed will help deliver the capacity and infrastructure needed to support an extra 11 million electric vehicles on Britain’s roads by 2030.
With the investment also comes the ability to be able to deliver environmentally-friendly heating to Great Britain’s homes and businesses, connecting locally sourced energy to local communities.
Along with the objective to support the existing processes of green energy production and its transportation across the country, is the aim to unlock a new strategic innovation fund worth £450 million to help drive even more research and green energy development.
Cutting the costs you pay
Customers can expect to see less of their money going towards network company's profits, and more towards improving network distribution capabilities and fighting climate change.
Ofgem also continues to ensure that the costs of delivering green energy to British energy customers are kept as low as possible, in order to keep tariff costs down and encourage people to switch.
Ofgem’s CEO, Jonathan Brearley, says:
“Our proposals will help turn Britain’s streets green, putting in place the wires and technology for families to travel in electric vehicles and heat their homes and businesses with clean energy.”
“The green energy transformation is not just about putting more copper in the ground. We need a modern, digital grid that uses all our energy assets as efficiently as possible”
“Local electricity networks will be at the forefront of eliminating harmful carbon emissions from the country, helping tackle climate change, so it’s vital they have the investment they need to do this whilst keeping costs as low as possible for consumers.”
Global increase in the use of renewable energy
The global use of renewable energy in the first three months of 2020 was 1.5% higher than in the first three months of 2019, according to the Global Energy Review 2020. Furthermore, renewable electricity made up 28% of global electricity generation in the first quarter of 2020, compared to 26% in the first quarter of 2019.
This increase was driven by an estimated rise of around 3% in renewable electricity generation, after the completion of additional solar and wind power projects in 2019.
Promisingly, the green energy forecast for 2020 suggests renewable electricity generation will grow a further 5% despite the supply chain and infrastructure construction delays caused by the coronavirus.
Help out and switch to green energy
Customers around the UK save a great deal of money annually by switching to a better value-for-money energy deal, and now with the number of green energy suppliers increasing, customers can save money and the planet.
Using our own data at the time of writing, there are 126 green energy tariffs on the market that customers have the choice to switch to. In fact, the third cheapest deal on the market is Green’s CherryBlossom tariff, with an average annual price of £800. When compared to the average gas and electricity tariff price of £1,127, you could potentially save £327* by switching to green energy.
Enter your postcode on our main page to get started and switch to a green energy deal today.
*The Green CherryBlossom tariff costs an average £800 a year. It is £327 less than the current typical cost of a UK gas and electricity bill of £1,127 a year. These are for an average UK home paying by monthly direct debit on a standard gas and electricity tariff with a Big Six supplier. Average usage is currently defined by the energy regulator Ofgem as 12,000kWh of gas and 2,900 kWh of electricity per year. If your usage is higher or lower than this, the rates will be fixed and the amount you pay will depend on your usage. Prices correct as of 30/07/2020.