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NEWS / Infrastructure Intelligence / Ofgem greenlights early construction funding for key energy projects

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12 MAY 2026

OFGEM GREENLIGHTS EARLY CONSTRUCTION FUNDING FOR KEY ENERGY PROJECTS

Ofgem has given the green light to early construction funding (ECF) for a series of large electricity transmission projects in Scotland.

The projects are upgrading Scotland’s electricity network so more clean, homegrown power can reach homes and businesses. They are being progressed under Ofgem’s Accelerated Strategic Transmission Investment (ASTI) programme, launched in 2022 to accelerate delivery of key power transmission projects.

ASTI projects will help meet the government’s clean power targets, reduce reliance on volatile foreign energy markets and give British consumers access to more homegrown energy.  The schemes are:

Denny to Wishaw 400kV Reinforcement Project: a power line which will carry enough renewable electricity to supply around a million homes. This proposed SP Transmission Ltd (SPT) project involves the establishment of a new north-to-south overhead power line corridor. allowing 1,000MW of clean power to flow through Scotland’s central belt.  The project has been awarded 55% of the project cost.

Tealing-Kincardine Upgrade Project (TKUP):  boost capacity and support major new links like electricity ‘superhighways’. TKUP has been awarded 53% of the project cost.

Eight Scottish Hydro Electric Transmission (SHET) Early Construction Funding applications: applications by Scottish and Southern Electricity Networks Transmission for eight electricity transmission projects.

Ofgem says the new transmission capacity these projects will deliver will also generate consumer savings by reducing the amount of constraint costs currently added to bills, when wind farms are paid not to generate, due to lack of grid capacity. 

The decision means Ofgem has now granted early funding to all 26 projects in the ASTI programme.

ECF is used by transmission operators (TOs) to finance early procurement of highly sought after materials such as substation components and HVDC cables, as well as strategic land purchases and associated enabling works including design work, surveys and early construction activities. 

Ofgem says this gives the UK a “critical edge” in the global race to secure key components at a time when many other countries are also seeking to decarbonise their grids, which helps reduce the risk of costly procurement delays.

Subject to planning consents, and construction programmes running to time, the projects are expected to proceed at pace with a view to start delivering benefits to consumers by 2030.

Beatrice Filkin, Ofgem’s director of major projects, said:   “The last few years have shown how quickly global events can result in energy price shocks which push up bills for British consumers.

“By unlocking early funding for these projects, we aim to accelerate their delivery. This is crucial for strengthening Britain’s energy security and cutting constraint costs and exposure to volatile international gas prices by providing more grid capacity. 

“Early funding helps transmission operators secure scarce components, avoid supply-chain delays, and deliver the grid upgrades needed to power homes and businesses with more clean, homegrown energy.”

She added: “However this isn’t planning consent for the schemes which will be considered by the relevant planning authorities.

“As financial regulator of these projects, we’ll protect consumers by ensuring any early spend is targeted, any unused funding is returned, and costs can only be recovered where there’s a clear benefit for billpayers.”

Major projects and issues shaping the future of the country’s infrastructure sector will go under the spotlight at the Delivering Infrastructure 2050 conference being held in London on 30 June 2026.

Organised by the Association for Consultancy and Engineering (ACE), Ofgem’s Beatrice Filkin (pictured above) is among the line-up of speakers who will be sharing their insight of the sector at the event.

A senior energy infrastructure professional serving as director of major projects at Ofgem, the UK’s energy regulator, Filkin oversees delivery of large‑scale energy transmission and storage initiatives to support the energy transition and clean power goals.

Click here to find out more about the event.

 

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