Unlocking Early Investment: Strengthening Ofgem’s Advanced Procurement Mechanism

11 Dec 2024

BEAMA has responded to Ofgem’s consultation on the proposed Advanced Procurement Mechanism (APM), a key reform designed to accelerate electricity transmission projects across Great Britain.

 

Expected to launch in 2025, the APM would allow transmission owners to secure critical equipment, such as transformers, cables, and switchgear, years in advance of project delivery, and even before final approvals are in place. The goal is simple: ensure projects can move quickly from planning to construction, with supply chains ready to deliver. 

While the intent is strongly supported, questions remain over whether the mechanism will go far enough to boost UK competitiveness. Without clearer timelines for project approvals and greater certainty on when firm orders will be placed, manufacturers may still lack the confidence needed to invest in expanding capacity for the UK market. 

To maximise the impact of the APM, several key shifts are needed. Earlier placement of firm orders will be critical, alongside a move away from project-by-project procurement toward longer-term programmes of work. A more strategic, partnership-based approach between transmission owners and suppliers would also help create the stability needed for investment. 

Standardisation is another priority. Greater alignment in equipment specifications, starting with system ratings, would reduce complexity, improve efficiency, and support faster scaling across the supply chain. 

BEAMA will continue working closely with Ofgem and industry partners to ensure the APM delivers on its potential, unlocking investment, strengthening supply chains, and accelerating the UK’s transition to a low-carbon energy system.

Read our full consultation response here.

 

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