Scottish Renewables has welcomed Ofgem’s decision to fast track a key grid code modification that will reduce the financial risk of clean energy projects and unlock new investment across the sector.
The regulator has granted ‘Urgency’ status to CMP447, a proposed change to the electricity network code that removes the requirement for developers to underwrite the costs of strategic grid upgrades that would go ahead regardless of their project.
The move comes ahead of major grid reform due this autumn as part of the National Energy System Operator’s (NESO) Connections Reform process.
CMP447 will be implemented in time for the next round of grid connection offers and is expected to deliver immediate financial relief, particularly for smaller developers who previously faced unsustainable upfront costs.
Stephen McKellar, head of grid and networks at Scottish Renewables, said: “The renewable energy industry in Scotland has worked closely with Ofgem and NESO over the past 12 months to highlight the impact that CMP447 would have on a wide range of projects.
“With Connections Reform dominating industry attention and resource over the last year, Ofgem’s decision to grant ‘Urgency’ status to CMP447 critically aligns vital grid modifications with the new implementation process for granting grid connections.”
The change affects how security deposits-financial guarantees provided by developers-are calculated for transmission upgrades. Under CMP447, projects will no longer be held liable for strategic grid expansion works that have already been approved by Ofgem, significantly lowering their risk profile.
Previously, developers were expected to bear the cost of grid infrastructure expansion even if those works were deemed necessary for the system overall. This model raised the financial barrier to entry for many projects and delayed investment decisions.
“Scottish Renewables is grateful to all colleagues and stakeholders who have worked collaboratively to understand the urgency of this issue and bring it to the forefront of the regulator’s attention,” McKellar added.
“With the size and scale of the strategic network buildout planned for Scotland, maintaining investment and de-risking projects of all sizes is key to achieving our climate goals and CMP447 will help to do this.”
The revised rules are expected to bring greater clarity and financial stability to upcoming connection offers, reinforcing investor confidence at a critical moment for UK energy infrastructure.