Ofgem is set to confirm the National Energy System Operator’s plan to reform grid connections, prioritising clean energy projects that are ready to connect over ‘zombie’ schemes which are in the queue under the previous ‘first come, first served’ basis.
Nearly two years ago the BBC revealed that there was £200bn worth of renewable energy projects sitting in the connections queue, citing the example of Octopus Energy who were facing a 15 year wait for grid connection. In the last five years, the queue for connection has grown tenfold.
In addition to renewable projects, schemes representing industries of the future’ will also be accelerated to connection. These will include data centres and AI, while projects that are not aligned with strategic plans will be deprioritised.
Ofgem CEO, Jonathan Brearley said: ‘The proposed connection reforms will supercharge Great Britain’s clean power ambitions with a more targeted approach anticipated to unlock £40 billion a year of investment and energise economic growth.
‘The reforms would cut through red tape, consign ‘zombie projects’ to the past and accelerate homegrown renewable power and energy storage connections as we head to 2030.
‘Houses and hospitals, electric vehicle charging stations, data centres and the emerging AI sector, would also all benefit from the proposed streamlined fast-track approach, which would help boost energy security and drive down bills.’
Kayte O’Neill, Chief Operating Officer, National Energy System Operator, said: ‘Reforming the connections process is a key enabler for delivering Clean Power by 2030 and will drive economic growth for Great Britain. Today’s milestone reflects the close collaboration across the energy industry with support from the government and Ofgem.
‘Together with the wider energy industry, NESO will focus on prioritising agreements for projects that are critical and shovel ready, bringing these to the front of the queue and giving developers the certainty they need to support investment decisions.’
Zoisa North-Bond, CEO of Octopus Energy Generation said|: ‘It’s great to see Ofgem tackling one of the biggest blockers to Britain’s clean energy future and putting shovel ready renewables on the fast track. For too long, vital renewable projects have been stuck in a broken system that rewarded position over progress.
‘Today, more than 3,500 renewable energy projects are stuck in the grid queue – many ready to build, but facing wait times of up to 15 years just to connect.
‘This reform will make the system more efficient, remove the need for unnecessary new pylons, and slash bills for consumers and businesses across the country.’
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