UK Network Companies' Innovation Projects Awarded GBP57.6 Million

By Jaime Llinares Taboada

U.K. regulator Ofgem said Monday that it has awarded five gas-and-power network innovation projects with 57.6 million pounds ($76.7 million).

The price-winners include two projects by National Grid PLC to test the introduction of hydrogen in the company's gas transmission network, and to upgrade electricity-transmission towers to carry more power and avoid the construction of new lines. The hydrogen test facility received GBP9.1 million and the project to increase line voltage was awarded GBP8.1 million.

Scotland Gas Networks, UK Power Networks and Electricity North West are the other companies that were also awarded.

"[The projects] will play a vital role as part of [the U.K.] government's ambitions for climate action and a green economic recovery, supporting jobs, growth and decarbonization across the whole country," David Smith, chief executive of the Energy Networks Association, said.

Ofgem said it will introduce further innovation funding as part of the RIIO-2 price control framework, which will run from 2021 through to 2026. A final decision on RIIO-2 is expected in December.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

November 30, 2020 06:30 ET (11:30 GMT)

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