Ofgem announced on 14th February a reform designed to fast-track grid connections, making it cheaper and quicker for cleaner power to plug into the UK electricity grid.
The new connections system, which could be in place by the spring this year, would end the first-come, first-served system where clean energy generation or storage projects that we need cannot get plugged into the grid quickly enough, because ‘zombie’ ie speculative or stalled projects, are blocking the queue, with some more ready projects waiting a decade or more.
Under the proposals, projects would be fast-tracked if they can be operational quickly and are needed to hit the government’s clean power targets for 2030. This new system, which prioritises projects that are ‘ready’ and ‘needed’ could see accelerated new offers made by the end of the year, with the first connected and operational from 2026.
Akshay Kaul, Ofgem’s director general for Infrastructure, said, “This is a step change in tackling delays and shortening queues on what is currently an out-dated and unwieldy system. It is key to achieving the Clean Power mission by 2030. Britain will not get a clean power grid by 2030 unless an unprecedented volume of new renewable power and storage is connected to electricity networks – that’s why we’re cutting back the red tape and replacing the out-of-date connections system. It will also 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”. Energy Secretary Ed Miliband said, “We have enough energy projects in the grid connection queue to deliver clean power by 2030, but many are stuck behind speculative schemes, leading to delays of up to 10 years. “Our Clean Power Action Plan will fix the broken ‘first come first served’ system and 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.”
These proposed reforms are the result of over two years of activity across the energy industry covering consultations, code modification working groups and wider engagement to create these proposals. The process was started in 2023 when the basis of the new system was proposed, handing the responsibility for queue management to National Grid ESO, and intended to be applicable from 27 November 2023; they were to be introduced for both existing and future grid connection agreements, to terminate stalled projects that were blocking the queue for high-voltage transmission lines and would allow ready-to-go generation and storage that was helping achieve net zero to be fast-tracked.
Commenting on the publication of Ofgem’s plans, RenewableUK’s director of Future Electricity Systems Barnaby Wharton said: ”Promoting shovel-ready clean energy projects by removing speculative zombie schemes which are blocking them in the queue would help to reduce the huge backlog of grid connection applications across the energy sector, which now stands at over 700 GW. As long as these measures are implemented in the right way, they should provide greater clarity for developers on faster timescales to connect to the grid, potentially unlocking up to £15 bn investment in offshore wind alone, helping us to reach the Government’s target of clean power by 2030″.
