Ofgem Announces New Rules To Clear Delayed Projects And Reduce Waiting Time For Energy Grid Connections
New rules to speed up electricity grid connections for viable projects and allow stalled or speculative developers to be forced out of the queue have been announced by Ofgem.
The change is a big step away from the existing ‘first-come, first-served’ system, which has led to a long queue of energy projects which could generate almost 400GW of electricity – well in excess of what is needed to power the entire British energy system.
The new queue management milestones will be implemented by the UK grid’s operator, National Grid ESO, from Nov. 27 and will be introduced to both existing and future grid connection agreements. This will terminate stalled projects that are blocking the queue for high-voltage transmission lines and means ready-to-go generation and storage to enable net zero can be fast-tracked.
The rule change will give National Grid ESO the power to introduce strict milestones into connection agreements and terminate projects if they do not hit them at each project stage. The ESO will publish guidance on Nov. 27 on how it will use its powers with first terminations likely to happen as early as 2024.
It comes after Ofgem’s CEO Jonathan Brearley said in May that urgent reform to the connections system was vital to unlock new investment and hit national targets – 50GW of offshore wind capacity by 2030 and 70GW from solar by 2035.
The announcement comes ahead of a joint connections action plan, which Ofgem and DESNZ (Department of Energy Security and Net Zero) are due to publish later this month. It also comes ahead of the government response to recommendations to halve the time to build transmission infrastructure by the then Electricity Networks Commissioner, Nick Winser.
It also builds on National Grid ESO’s five-point plan, which includes near-term initiatives with Ofgem support that will create capacity and acceleration of connection dates for transmission projects.
"We warmly welcome these new rules approved by Ofgem enabling us to proactively terminate zombie projects in the connections queue. This is a milestone moment in the ESO's efforts to lead the transformation of the grid connections process, making it fit for purpose for a modern network that is rapidly evolving and decarbonising," said Julian Leslie, Chief Engineer and Head of Networks at the ESO. “The ESO will be uncompromising in our approach to driving out projects that cannot meet their connection date, paving the way for more viable projects that have a real chance of plugging into the grid, energising the UK economy.”
