26 Jan 2011 12:01:08

Scotland granted funding for energy grid upgrades

Ofgem has granted almost £100 million of funding to enable Scotland to connect more renewable energy projects to the grid.

Stuart Cook, Ofgem's senior partner for Smarter Grids and Governance, said the allocation of the cash is "crucial to helping meet Britain's climate change targets".

The £95 million funding will be spent over the next two years to update Scotland's transition network, with the majority of this going to National Grid Electricity Transmission and Scottish Power Transmission for a project which will allow power generated from renewable sources to be exported across the UK.

A further £11.5 million will be used by Scottish Hydro Electric Transmission to improve connection in the north of Scotland, while £1 million will be spent on a cable between Pembroke and Wylfa, which could accommodate further offshore renewables development in the Irish Sea.

"We are now assessing the business case for other network upgrades needed so Britain can reach its renewable energy potential," Mr Cook added.

Scotland's Highlands and Islands was also recently granted £18 million of funding from the European Regional Development Fund for the development of renewable energy projects in the region.