The reforms will remove so-called “zombie” projects from the queue for connection to the grid and instead connect renewable energy projects that are most needed.
The proposals were initially put forward by the National Energy System Operator (NESO), which suggests the connections queue currently holds more than 750MW of projects – four times what the UK needs for 2030 and twice what is needed for 2050.
Companies are also currently waiting for up to 15 years to be connected to the grid, leaving them ‘grid-locked’ – and over the last five years, the grid connection queue has grown 10-fold.
Fast-track homegrown power connections
“Energy Secretary Ed Miliband said: “Too many companies are facing gridlock because they cannot get the clean energy they need to drive growth and create jobs.
“These changes will axe ‘zombie’ projects and cut the time it takes to get high growth firms online while also fast-tracking connections for companies delivering homegrown power and energy security through our Plan for Change.
“In an uncertain world, our message to the global clean energy industry is clear; come and build it in Britain because we are a safe haven. If you want certainty, stability and security when it comes to your investments, choose Britain.”
Projects that are “ready” and “needed” will be prioritised with new offers, some by the end of the year, cutting waiting times to connect to the grid.
The first of these projects could be connected and operational from 2026.
Connection preferences will be given to projects, including those with data centres and AI as well as wind and solar.
That means deprioritising projects that are not ready or not aligned with strategic plans.
NESO expects to seize a £40 billion annual investment opportunity in clean energy and infrastructure through the implementation of the reforms.
‘Supercharge’ Britain’s clean power ambitions
Ofgem CEO Jonathan Brearley added: “The proposed connection reforms will supercharge Great Britain’s clean power ambitions with a more targeted approach anticipated to unlock £40 billion a year of investment and energise economic growth.
“The reforms would cut through red tape, consign ‘zombie projects’ to the past and accelerate homegrown renewable power and energy storage connections as we head to 2030.
“Houses and hospitals, electric vehicle charging stations, data centres and the emerging AI sector, would also all benefit from the proposed streamlined fast-track approach, which would help boost energy security and drive down bills.”
