UK unveils grid connections action plan to boost capacity
Britain has released a Connections Action Plan which includes six key areas of action for the UK government, Ofgem, the ESO (Electricity System Operator) and network companies to speed up transmission grid connections for power projects.
The plan contains agreed actions to be taken now and over the coming months, as well as actions that will take longer to be designed and implemented.
Said Claire Coutinho, secretary of state for Energy Security and Net Zero: “This plan will release over 100GW of capacity from the current queue – equivalent to around a quarter of the electricity needed to power our economy in 2050.
“As well as boosting the deployment of renewable and low carbon generation, ensuring energy security and supporting the decarbonisation of industry, heat and transport, the actions will strengthen the UK’s position as a leading destination for inward investment.”
The plan includes:
- Entry requirements
The plan raises entry requirements to increase the quality of projects applying for transmission connections and deter speculative connection applications.
Subject to Ofgem’s approval, the ESO will start requiring a landowner Letter of Authority at the distribution level to evidence permission from a landowner for a transmission network connection application to be accepted.
- Stalled projects
The action plan removes stalled projects to release capacity for more viable projects.
The government will require milestones in transmission connection contracts, which a connection customer must meet or face termination of their connection contract – termination would see the affected customer lose their position in the queue.
The government will also review and improve the enforcement of existing connection milestones at distribution level.
- Better use of existing network capacity to reduce connection timelines
The government will change how the impact of connections is assessed by the ESO and network companies, beyond existing actions, and enhance use of flexibility.
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- Moving away from ‘first come, first serve’
The connection process will shift to an approach that connects projects that are more ready to progress and are able to quickly make use of capacity.
The Department for Energy Security and Net Zero in collaboration with the Office for Investment will manage a triage process to ensure the most strategically important projects receive the strongest possible support to explore timely connection solutions, working together with Ofgem, the ESO and network companies.
- Improve data and processes
These improvements, alongside sharpened obligations and incentives on the ESO and network companies, will:
• Give connection customers a better understanding of the condition of networks, to improve the quality of their connection applications and reduce speculative applications.
• Ensure network companies deliver timely connections and high-quality customer service, as well as act consistently.
This will ensure that all customers receive the same high-quality service from the ESO and network companies wherever they are located, improve the interaction and consistency between transmission and distribution, and that network companies deliver timely connections.
As part of this, Ofgem will undertake an end-to-end review of connections incentives, obligations and requirements on the ESO and network companies.
- Longer term connections process models
Such models will be developed and aligned with strategic planning and market reform to ensure they are integrated to deliver strategic outcomes for net zero.
Freeing capacity
The action plan comes as the UK rallies efforts to free up space on the grid to meet its ambitions for a decarbonised power sector by 2035.
It comes on the back of a new policy from energy regulator Ofgem to clear ‘zombie projects’ clogging up the transmission queue and cut the waiting time for energy grid connections.
The new rules are hoped to speed up electricity grid connections for viable projects and allow stalled or speculative developers to be forced out of the queue.
Ofgem said the change is a big step away from the existing first-come, first-served system, which has led to a long queue of energy projects, which could generate almost 400GW of electricity – well in excess of what is needed to power the entire British energy system.
The new queue management milestones will be implemented by the UK grid’s operator, National Grid ESO, from 27 November 2023 and will be introduced to both existing and future grid connection agreements.
Added Coutinho on the government’s plan: “Our Transmission Acceleration Action Plan will halve the time it takes to complete physical build of transmission assets.
“As well as boosting the deployment of renewable and low carbon generation, ensuring energy security and supporting the decarbonisation of industry, heat and transport, the actions will strengthen the UK’s position as a leading destination for inward investment.”
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Related Knowledge Center: Offshore wind energy
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