Ofgem said it is consulting on introducing a new investment fund worth between £5bn and £8bn, designed to speed up the UK’s major energy transmission projects.

Ofgem said in a statement that the new Advanced Procurement Mechanism (APM) would provide billions of pounds to help owners cut delays, bring down costs, and attract international investment.

The money would be spent on ensuring “essential equipment,” such as switchgear, cables and steel for major projects, is brought in years in advance, so as to reduce delays once planning approval is secured.

It comes after the Labour government’s pledge to decarbonise electricity by 2030. The National Energy System Operator (NESO), which is in charge of linking projects to the grid, has said the target is “achievable” but will be a “huge challenge.”

“To get there, we need to give developers a head-start to secure the essential equipment needed for new clean energy infrastructure,” Energy Minister Michael Shanks said on Wednesday.

“By getting ahead of the global race for these materials, developers will be able to avoid costly delays to projects and ensure nothing stands in the way of our clean power mission.” 

Ofgem has green-lit several major subsea cable projects this year. One is a £2bn, 196km “electricity superhighway,” which will run under the North Sea and power up to 2m homes.

Akshay Kaul, Director General of Infrastructure at Ofgem said: “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.  

“Such avoidable delays to construction could cost consumers billions of pounds over the coming years.

He added: “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.”

The consultation launched today and will run until 18 December.