UK energy regulator eyes up to $10.2 billion fund to aid green targets

(Reuters) -Britain’s energy regulator Ofgem said on Wednesday it had begun consultations over a new investment fund of up to 8 billion pounds ($10.16 billion) that could help the country’s net zero prospects and aid energy transmitters to cut delays and costs.

The proposed fund, worth between 5 billion pounds and 8 billion pounds, would provide allowances for transmission owners to buy in advance equipment such as switchgear, cables and steel, thereby accelerating deliveries of projects, Ofgem said.

The regulator also added that the fund, consultation for which will run until Dec. 18, would help the government achieve clean power by 2030, and net zero targets eventually, among other things.

The consultation comes after Ofgem said last month it would offer developers of renewable energy storage projects a guaranteed minimum income to spur investment in technologies that would help Britain meet its climate targets.

Ofgem has proposed that it would be clear in its rules to ensure that the latest fund is used only for intended purposes, and that any unused allowances would be returned to consumers so as to minimise any impact on their energy bills.

($1 = 0.7875 pounds)

(Reporting by Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich)