GRID CONNECTION REFORM: ABOUT TO HAPPEN?
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The National Energy Systems Operator (“NESO”) has put forward a new and detailed process for grid connections which Ed Miliband, the Energy Secretary, describes as a ‘first come first served’ process.
He explained that:
“These changes will mean a targeted approach which prioritises quicker connections for the right projects in the right place, so Britain can accelerate towards a new era of clean electricity.”???
At the end of February (2025), the UK’s energy regulator, the Office of Gas and Electricity Markets (Ofgem) announced the new process for new projects. Those requiring connection to the national electricity grid will be prioritised in terms of how close they are to being ready. This is a departure from the current regime which has plagued the public sector and developers alike.
For years there has been a log jam on grid connections with some projects facing a wait of more than ten years. Reforming the system has long been discussed and now, at last, we could see a new improved timetabling system being implemented. The new process is hoped to be up and running in months, depending on a final consultation which is required to ratify the steps that Ofgem are ‘minded-to’ put in place.
The government has a Clean Power 2030 Plan requiring current generation capacity on the grid to double over the next five years. However, the queue of?projects awaiting a grid connection?far exceeds the number that would meet the government’s clean power targets. This new process is seen as the means of fast-tracking projects that are ‘shovel ready’, while removing stalled projects that are currently in the queue blocking the way for those that could quickly add to the government’s Clean Power 2030 target figures. It is suggested that new queuing process could be in place by 2026. We, along with others in the renewables development, eagerly await this transformation of the energy landscape.
Ofgem’s Director General for Infrastructure, Akshay Kaul, commented on the new proposed scheme:
“It will help speed up connections for public services, including housing, hospitals and EV charging stations, as well as new industries like data centres which are key to boosting economic growth”.
There are detractors, however, who have commented that the focus on meeting targets by 2030 leaves projects that might well complete after this date being side-lined in favour of short termism which in the long run would actually slow the pace of decarbonising the grid just when it needs to accelerate. In this vein, Chief Executive of Solar Energy UK, Chris Hewett commented
“Doing so would place many solar and battery storage projects that are under active development into the same category as those that are least ready, putting ￡26 billion of planned investment at risk. We must have a clearer steer from Government on what their 2035 projections mean for our industry, and an uplift to those numbers if they wish to encourage continued investment in our fast-growing sector.”
The final consultation will no doubt receive comments like this, and certain technologies may be left out in the cold.? The projects awaiting connection dates far outstrip the capacity of the grid. This new system won’t mitigate all the delays as we have ageing electrical infrastructure which needs heavy investment in order to make progress. The new queuing system won’t fix this problem but there is hope for reform that will bring about more connections and more available clean power by 2030.