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13/05/2026

Ofgem Confirms £150m Early Construction Funding for Critical Scottish Grid Projects

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Ofgem has announced the approval of approximately £150 million in 'Early Construction Funding' (ECF) for two major strategic transmission projects in central and southern Scotland.

The investment, confirmed on 12 May 2026, is a key component of the RIIO-T3 Business Plan, which launched on 1 April 2026 and runs through to 2031. The funding is allocated across two primary initiatives: £99 million for the Tealing to Kincardine Upgrade Project (TKUP) and £53.1 million for the Denny to Wishaw Network Upgrade (DWNO).

Both schemes are part of the Accelerated Strategic Transmission Investment (ASTI) framework. This regulated initiative is designed to fast-track 26 critical electricity network projects across Great Britain to bolster energy security and meet decarbonisation targets.

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."

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She continued: "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. 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."

The TKUP project involves increasing the operating voltage of existing overhead lines in Fife from 275kV to 400kV. It also includes the extension of the Westfield and Mossmorran substations and the construction of a new substation at Conland.

Meanwhile, the DWNO project focuses on reinforcing the network between Denny and Wishaw. This includes uprating existing lines and constructing a new overhead transmission line between Bonnybridge and Glenmavis to accommodate the flow of additional green energy.

These strategic upgrades are essential to the UK Government's 'Clean Power 2030 Action Plan', which aims for 95% of Great Britain's power to come from clean sources by 2030. The wider RIIO-T3 plan is projected to reduce average consumer bills by £167 per year by 2030 while supporting 1,400 direct jobs and contributing £2 billion in annual GDP growth.

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