Ofgem has set out a series of proposals that would overhaul the system by which new projects connect to the energy system.
Alongside its suggestions, Ofgem called on network operators to get renewable, clean power and storage projects connected to the grid faster. The energy regulator conducted an end-to-end review of the connections process to find out where changes could be made.
It notes that “tough but fair” new regulations would improve customer service and ensure deadlines are met. It proposes that companies face tougher enforcement if they do not meet stricter milestones and deadlines, tougher financial penalties and more restrictive licenses.
If approved, Ofgem’s new approach would reduce the 722GW of projects in the connections queue by prioritising schemes that can be operational within five years and contribute to the right mix of renewable generation types in the right location and at the right voltage to hit the Government’s 2030 goal.
In April, Ofgem put the queue at about 701GW of projects, with the potential to reach 800GW by the end of this year.
This broadly echoes the proposals released by the National Energy System Operator (NESO), which proposes that the reformed connections process and entry to the reformed connections queue should be based on a combination of project ‘readiness’ and ‘strategic alignment’.
Ofgem suggests that a new process alone will not be sufficient to reduce the connections queue and that tighter regulations are needed; its five-year timeline for projects connecting is perhaps already more stringent than NESO’s ‘readiness’, which requires either planning or land rights secured for a project.
Eleanor Warburton, director for energy system design and development at Ofgem, explained that the application system overhaul is intended to “cut down on delays to the hundreds of approved projects that are ready to connect to the grid”, a process which will block “hundreds of unviable, stalled and speculative schemes”.
Ofgem’s proposals also cover protections for customers connecting to the grid who receive poor service, a move that Warburton said would “keep investment flowing.”
DESNZ and Ofgem promise grid connections legislation
At the end of September, the Energy Networks Association (ENA) said that its Strategic Connections Group had seen 10GW of “zombie” projects from the connections queue. This was achieved by removing stalled projects, ensuring that all projects waiting for connection were “on track”.
The Department of Energy Security and Net Zero (DESNZ) published a joint open letter with Ofgem, pledging to legislate to support reforms to the connection process and limit legal challenges.
The open letter, signed by energy minister Michael Shanks and Ofgem chief executive Jonathan Brearley, notes that project readiness reforms alone will be unlikely to significantly reduce the queue to deliver clean power by 2030.
The commitment was in part spurred by NESO’s Clean Power 2030 report, which acknowledged a “clear and urgent need to reform” the connections process.
DESNZ notes that grid connections reform will serve the government’s ambitions beyond clean energy: “Projects needed to drive the government’s growth mission, from data centres to housing, will also need accelerated connection to the grid.”
