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  Ofgem introduces rules to clear connectivity logjam for new renewable energy projects

  Posted by Civil Engineering on November 15, 2023 at 9:15 am

  

  Energy generation projects under development will be forced out of the queue for connection to the grid if they do not meet strict new milestones set by Ofgem.

  The enegy regulator believes the new rules will speed up electricity grid connections for viable projects and see stalled or speculative developers restricted grid access. This is an attempt to reduce the connectivity logjam the UK is currently experiencing, which is restricting renewable energy projects from connecting to the grid. This is hindering the UK in achieving its targets of 50GW of offshore wind capacity by 2030 and 70GW from solar by 2035.

  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 waiting to be connected. These projects currently queued have the cumulative capacity to generate almost 400GW of electricity, far more than the demand for electricity.

  The move comes after electricity networks commissioner Nick Winser called on the government to take action to halve the time taken to build clean electricity transmission infrastructure in the UK, which is currently between 12 and 14 years.

  During the same month, Ofgem agreed to allow National Grid to implement an amnesty for up to 50 energy transmission developments contributing to the connectivity logjam.

  The new queue management milestones will be implemented by the UK grid’s operator, National Grid ESO, from 27 November and will be introduced to both existing and future grid connection agreements. This will terminate stalled projects that are blocking the queue for high-voltage transmission lines and means ready-to-go generation and storage to enable net zero can be fast-tracked.

  National Grid will publish guidance in November on how it will use its powers with first terminations likely to happen as early as 2024.

  A joint connections action plan to meet the UK’s energy targets is due to be published later this month by Ofgem and the Department of Energy Security and Net Zero (DESNZ).

  Charles River Associates (CRA), a business management consultancy who recently authored a report regarding projects that will never come to fruition delaying the connectivity queue, believes the rule changes can’t have come soon enough.

  CRA energy practice vice president Simon Ede said: “The decision by Ofgem to fundamentally reform the queue for connections to the electricity grid is a sensible one.

  “The current system was designed for a world with a small number of large fossil fuel generators connecting each year. That is now long gone.

  “The first-come-first-served arrangements have led a rapid proliferation of renewable energy projects, but the existing queue has become oversubscribed by a factor of 3-4 compared to what industry believes is needed, with many projects in the current queue unlikely to ever come to fruition.

  “As highlighted in our recent public report for Centrica, the situation has become significantly worse in the last few years and is now frustrating the UK’s net zero ambitions. The new arrangements allow for more active management of connections, shorten the amount of time it takes to connect viable projects, and accelerate decarbonisation of the electricity system.”

  Ofgem institutions for net zero energy systems management and security deputy director Eleanor Warburton said: “The transition to net zero demands urgent changes to the electricity connections system – or we cannot unlock investment, speed up network build and accelerate new technology.

  “This is a big step towards phasing out the first-come first-served queuing system. We want new power on the grid as quickly as possible, so if you’re ready, you can connect sooner. If you’re not ready and are blocking the progress of others, you’ll be removed – you can’t sit on the queue with no consequences.”

  National Grid chief engineer and head of networks Julian Leslie said:  “We warmly welcome these new rules approved by Ofgem enabling us to proactively terminate zombie projects in the connections queue.

  “This is a milestone moment in National Grid’s efforts to lead the transformation of the grid connections process, making it fit for purpose for a modern network that is rapidly evolving and decarbonising.

  “The National Grid will be uncompromising in our approach to driving out projects that cannot meet their connection date, paving the way for more viable projects that have a real chance of plugging into the grid, energising the UK economy.”

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