Radical reform to fast-track cheaper, cleaner power plugging into the electricity grid is one step closer to becoming a reality, Ofgem has announced today (14 February).
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 that we need 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.?
Akshay Kaul, Ofgem’s Director General for Infrastructure, said:
'This is a step change in tackling delays and shortening queues on what is currently an outdated and unwieldy system. It is key to achieving the Clean Power mission by 2030.
'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power and storage is connected to electricity networks – that’s why we’re cutting back the red tape and replacing the out-of-date connections system.
'It will also help speed up connections for public services, including housing, hospitals and EV charging stations, as well as new industries like data centres which are key to boosting economic growth'.
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’s ‘minded-to’ decisions today aim to break down barriers to ending Britain’s fossil fuel dependency, while keeping the costs of the energy transition under control for consumers.
These proposed reforms are the result of over two years of activity across the energy industry covering consultations, code modification working groups and wider engagement to create these proposals submitted to Ofgem by the National Energy System Operator (NESO). This collaboration reflects the commitment across the energy sector to deliver a new more efficient, connections process to deliver Clean Power by 2030 and net zero by 2050.
Ofgem is now asking anyone with an interest to respond to the consultation by Friday 14 March 2025.
Matt Vickers, Director of Connections Reform, National Energy System Operator, said:
'Today’s minded to decision is an important reflection of the work that NESO and others across the energy industry, Ofgem and Government have been undertaking to reform our existing connections process. This shared commitment to deliver a new, more efficient connections process is critical to the delivery of Clean Power and Net Zero, we look forward to Ofgem’s final decision later this year.'
Vicky Read, CEO of ChargeUK, said:
'ChargeUK’s members are deploying charge points at a record rate, with close to 75,000 public charge points now in place and a new charger installed every 25 minutes.
'For the network to continue to grow at this exponential rate, so that drivers have the confidence to switch to electric, it needs to be as quick and easy as possible for our members to secure grid connections and energise their installations.
'The changes by Ofgem to speed up these connections will be vital in getting more charge points in the ground, especially where they are needed the most. This will provide more choice to today’s EV drivers and serve the millions of additional EVs that will come onto our roads in the coming years.'
Josh Buckland, EDF’s strategy and policy director, said:
'Access to a timely and secure grid connection is vital to accelerating the deployment of clean power right across the country and giving households and businesses access to homegrown power. The plans set out today to streamline connection queues and provide more certainty on when projects will be connected to the grid are a welcome step in the right direction. Given the vital importance of this issue, we will continue to work with Ofgem on the detail to ensure it works for project developers and investors alike.'
Background
The consultation is a follow-up from the policy consultation Ofgem published on 27 November 2024. The consultation will be open for 28 days, closing on 14 March.?
The minded-to decisions are our preliminary decisions on the package of code changes and methodologies that NESO sent to Ofgem on 20 December.????
Source: Ofgem
