Around 62GW of projects are sitting in the UK’s grid connection queue that do not have planning permission or necessary land rights, according to a report.
The study commissioned by Centrica suggests the waiting list for new connections is now four-times oversubscribed, with the majority of projects now looking at dates from 2030 and beyond.
The backlog is having a “damaging effect on the investments that could drive the UK’s energy transition and energy security”, it warns.
Ofgem is examining the issues and is expected to decide on rule changes by 10 November.
These would grant National Grid ESO powers to remove projects from the queue if they miss key milestones.
Applying the rule changes to projects already in the waiting list, as well as new entrants, could free up around 12GW of new capacity in the short-term, according to report authors Charles River Associates.
Centrica chief executive Chris O’Shea said: “In recent years, energy security has rightly moved up the agenda as countries look to secure supplies and drive the transition to net zero.
“That’s why it defies belief that the queue for new, green energy connections is blocked by ‘phantom’ power projects.
“Not only do these ‘developers’ not have the money to develop, but many also don’t even have planning permission or land rights – they’re gambling that holding a space in the queue will make them rich.
“The system was created for a different time, when a small number of large projects were connected each year. Our current approach is not fit for purpose and needs urgent reform.
“Thankfully Ofgem has now recognised the need for action but every day we wait for action is costing consumers money.
“Urgently introducing an industry rule change and applying it to the current queue, so that existing phantom projects lose their place when they miss milestones, would show that Ofgem were helping to reduce costs for consumers, to drive the energy transition and to improve the UK’s energy security.”