The Government and Ofgem have admitted grid connection reforms are facing delays and growing risks, as a surge in battery projects threatens to overwhelm the system.

In an open letter Energy Minister Michael Shanks and the regulator said the overhaul has cleared 221GW of stalled or unneeded projects from the queue, creating a more credible pipeline for investment expected to reach £200bn by the end of the decade.

Most technologies now have enough capacity in the fast tracked queue to meet 2030 targets.

But the process has not been smooth.

Historic data errors and the need to rework network studies have slowed progress – forcing a reset of timelines with officials warning further slippage is unacceptable.

Developers are now beginning to receive connection offers with pressure on network companies to deliver them accurately and on time.

The bigger issue is batteries.

The reforms have allowed a large volume of storage projects to advance leaving capacity far above what the system is expected to need.

Current projections show 14.8GW more battery capacity than required by 2030 targets and 61.7GW above expected system needs by 2035.

That oversupply has been driven in part by rules designed to protect more advanced projects including those with planning consent or existing agreements.

While intended to support investor confidence, those protections have combined with the speed of battery development to push more projects through the system than anticipated.

Ministers and Ofgem said they remain committed to supporting storage which is critical for balancing renewables but acknowledged the current pipeline creates risks for costs system planning and delivery. Work is now underway with the system operator and networks to assess the impact and consider mitigation options.

These include technical solutions such as shared infrastructure and potential changes to future connection rules to limit new battery projects – unless they secure revenue support. Industry proposals to introduce financial incentives for weaker projects to exit the queue are also being fast tracked.

Developers are being urged to reassess the viability of their projects and withdraw early if needed to avoid unnecessary network investment and rising costs for bill payers.

The later projects drop out the greater the risk of redesign delays and wasted capital.

A consultation is now open on further changes to the connections process including tightening eligibility for future battery projects.

Ministers said the priority is to keep the system fair and investable while ensuring it remains aligned with strategic energy needs.

The reforms have cut through years of backlog but the next phase will determine whether the UK can turn a cleaner pipeline into real world delivery without driving up costs or losing control of the system.