Energy watchdog Ofgem has predicted that the UK’s energy infrastructure will require £32bn of investment during the next 10 years to meet the requirements of a low carbon economy.
Particularly challenging will be the need for ‘smart grids’ to cope with changes in electricity generation and changes in usage patterns. For example, most of the electricity infrastructure is geared for dealing with large-scale generation from conventional power stations. Variable sources such as wind and tidal energy will pose different requirements, as will domestic microgeneration.
This £32bn upgrade figure is part of the £200bn that Ofgem estimates will need to be spent on infrastructure to meet 2020 climate change targets.