The new system, which could be place from this spring, would fast-track projects which ‘can be operational quickly’ and ‘are needed’ to hit the government’s clean power targets for 2030.
By prioritising ‘ready’ and ‘needed’ applications, accelerated new offers could be made by the end of the year, with the first projects being connected and operational from 2026, Ofgem says.
The newly published proposals are now open for consultation until March 14.
‘A step change in tackling delays’
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for Infrastructure, said: ”This is a step change in tackling delays and shortening queues on what is currently an outdated and unwieldy system.
“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power and storage is connected to electricity networks – that’s why we’re cutting back the red tape and replacing the out-of-date connections system.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.”
While the plans have been broadly welcomed, there is some concern about what happens after 2030.
A potential cliff edge after 2030
Chris Hewett, Chief Executive of Solar Energy UK, said: “We firmly support the need for reforming the grid connection queue. Prioritising those most ready to go ahead should be welcomed. Our shared priority with Government is to hit agreed targets for 2030, but we have concerns about potentially adverse consequences after 2030 – a potential cliff edge for the industry.
“Ofgem says that projects will have to be perceived as ‘needed’ under the Clean Power 2030 Action Plan, which risks turning the plan’s regional projections for 2035 into de-facto caps, slowing down the pace of decarbonising the grid just when it needs to accelerate. Doing so would place many solar and battery storage projects that are under active development into the same category as those that are least ready, putting £26bn of planned investment at risk.
“We must have a clearer steer from Government on what their 2035 projections mean for our industry, and an uplift to those numbers if they wish to encourage continued investment in our fast-growing sector,” he added.
Reforms critical to investment
The government says these reforms are needed to deliver clean power, and the hundreds of millions of pounds that is expected to bring in private investment as a result.
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 needs current capacity on the grid to double within five years, requiring investment to be unlocked, new infrastructure accelerated, and renewable technology brought in at scale.
The 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).
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