Radical reform to fast-track cheaper, cleaner power plugging into the electricity grid is one step closer to becoming a reality, UK energy regulator Ofgem announced today.
The new connections system, which could be in place in spring 2025, would end the first-come, first-served system where clean energy generation or storage projects cannot get plugged into the grid quickly enough, with some waiting a decade or more.
Under proposals published today, projects would be fast-tracked if they can be operational quickly and are needed to hit the government’s clean power targets for 2030.
This new system, which prioritises projects that are “ready” and “needed” would see accelerated new offers made by the end of the year, with the first connected and operational from 2026.
The renewable energy industry has today welcomed Ofgem’s plan to remove “zombie projects” from the grid connections queue.
RenewableUK’s director of future electricity systems Barnaby Wharton said: “Promoting shovel-ready clean energy projects by removing speculative zombie schemes which are blocking them in the queue would help to reduce the huge backlog of grid connection applications across the energy sector, which now stands at over 700 gigawatts.
“As long as these measures are implemented in the right way, they should provide greater clarity for developers on faster timescales to connect to the grid, potentially unlocking up to £15bn investment in offshore wind alone, helping us to reach the Government’s target of clean power by 2030.”
Stephen McKellar, Head of Grid and Networks at Scottish Renewables, said: “As the connections queue has more than 700GW of projects waiting to connect – almost four times the electricity demand we will need by 2050 – we welcome Ofgem’s continued efforts to address this issue through reform.
“While these moves from Ofgem are welcome, it is vital for the future success of Scotland’s renewable energy industry that any decisions on moving or removing projects with grid connection agreements are based on sound, evidence-driven analysis to avoid unintended and potentially negative consequences.
“The need to urgently find a solution cannot be overstated and any reform must be implemented as quickly as possible so that we can get moving to build the projects our future clean energy system will need.”
Ofgem’s director general for infrastructure Akshay Kaul said the aim was to tackle delays and shorten queues on the current “outdated and unwieldy system”.
Kaul added: “Britain will not get a clean power grid by 2030 unless an unprecedented volume of new renewable power and storage is connected to electricity networks – that’s why we’re cutting back the red tape and replacing the out-of-date connections system.”
Energy Secretary Ed Miliband said: “We have enough energy projects in the grid connection queue to deliver clean power by 2030, but many are stuck behind speculative schemes, leading to delays of up to 10 years.
“These reforms are critical to deliver clean power by 2030 , which will bring forward an estimated £200 billion of private investment.
“Our Clean Power Action Plan will fix the broken ‘first come first served’ system and these changes will mean a targeted approach which prioritises quicker connections for the right projects in the right place, so Britain can accelerate towards a new era of clean electricity.”
The Government’s Clean Power Action Plan requires current capacity on the grid doubling within five years, requiring investment to be unlocked, new infrastructure accelerated, and renewable technology brought in at scale – so it is vital those projects that are most viable and needed are connected as quickly as possible, Ofgem said.