Energy regulator Ofgem has announced a £95 million investment package over the next two years to increase the capacity of Scotland's power networks.

This is the next stage in funding the major programme of extra investment in the period to 2020 being developed by the transmission companies to help meet carbon targets. It follows on from the decision announced in January 2010 to fund an initial tranche of investment,

totalling £319 million, by the transmission companies in their current price control (2007-2013).

More than £80 million of the funding will be spent by National Grid Electricity Transmission and Scottish Power Transmission Ltd on a package of projects to increase the amount of electricity that can flow between the high voltage networks of England and Scotland.

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Scottish Hydro Electric Transmission Ltd will spend a further £11.5 million on upgrading its network to connect generation in the north of Scotland.

Stuart Cook, Ofgem's senior partner for Smarter Grids and Governance, said: "Upgrading Scotland's electricity networks so they can handle connections from more renewable generators is crucial to helping meet Britain’s climate change targets.

"Our decision means that we have approved more than £400 million extra investment in the high voltage grids across Britain in less than a year. We are now assessing the business case for other network upgrades needed so Britain can reach its renewable energy potential."

As part of the current transmission price control, Ofgem agreed that Britain's transmission companies National Grid Electricity Transmission, Scottish Power Transmission Limited and Scottish Hydro-Electric Transmission Limited could invest £3.8 billion.