U.K. Power Grids Get $425 Million for Upgrades to Meet Net Zero

(Bloomberg) -- U.K. energy regulator Ofgem has allocated 300 million pounds ($425 million) to grid projects that will support increased power demand as sectors such as transport electrify.

Some of the budget is for new infrastructure to support 1,800 new ultra-rapid charging points for electric vehicles at highway service areas and 1,750 charge points in towns and cities. All 204 projects will start this year with investment delivered during the next two years, Ofgem said in a statement.

“Drivers need to be confident that they can charge their car quickly when they need to,” said Jonathan Brearley, chief executive officer of Ofgem. “We’re paving the way.”

The U.K. has banned sales of new petrol and diesel cars from 2030 and the power networks will need to be ready to cope with millions of cars plugged in to the system. Power consumption is set to double by 2050 and the whole system is expected to become more decentralized making supply and demand more difficult to manage.

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Projects selected include infrastructure for electric flight, shipping, heating and road transportation sectors.

The budget is in addition to the 30 billion pounds already allocated for the next five years under the network price control. In December, Ofgem said there was a further 10 billion pounds available for future green projects.

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