Transmission companies have identified a number of critical investments that may be required for the long term development of the electricity transmission system.
These projects are designed to help facilitate the transition to a low carbon economy. Some of them are uncertain and complex, which means that it is not always possible or appropriate for us to decide whether to assign funding to these projects as part of the price control settlement.
To accommodate this uncertainty and complexity, we have implemented a number of mechanisms for setting and monitoring funding arrangements for these critical investments outside of the price control review process.
These mechanisms are:
- Strategic Wider Works – this was introduced in 2013 as part of the RIIO-T1 price control and applies to any large investment projects (subject to eligibility criteria) for which funding had not been determined as part of the price control settlement
- Transmission investment incentives – this was introduced in 2010 and applies to a number of projects designed to accommodate future generation and demand patterns in line with meeting the government's 2020 renewable energy and low carbon targets
- Transmission Investment for Renewable Generation - was introduced in 2004 and applies to a number of projects designed to accommodate growth of onshore wind generation in Scotland.