Ofgem has confirmed plans, drafted by the National Energy System Operator in partnership with the energy industry, to speed up grid connections.
Companies are currently waiting up to 15 years to be connected to the grid leaving promising businesses ‘grid-locked’, and over the last 5 years, the grid connection queue has grown tenfold.
Under the new changes, industries of the future from data centres and AI, to wind and solar projects, will be accelerated for grid connections. This will be achieved by deprioritising so-called ‘zombie’ projects that are not ready or not aligned with strategic plans.
The reforms could unlock as much as £40 billion a year of mainly private investment, according to the UK Government.
New commitments to investing in the UK have topped £38 billion since July 2024 for data centres alone, but grid access is the single biggest challenge facing these projects.
Reforms will help fast track projects to generate homegrown, renewable electricity into homes and businesses, too, the government said.
By taking a strategic, planned approach the changes could remove the need for tens of billions of pounds of unnecessary grid reinforcement, the government said, saving billpayers £5 billion that would have been funded through charges on bills.
Energy Secretary Ed Miliband said:
“Too many companies are facing gridlock because they cannot get the clean energy they need to drive growth and create jobs.
“These changes will axe ‘zombie’ projects and cut the time it takes to get high growth firms online while also fast-tracking connections for companies delivering homegrown power and energy security through our Plan for Change.”
Ofgem CEO, Jonathan Brearley, Chief Executive Officer, Ofgem 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.
“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.”
Image from Shutterstock
