UK unveils grid connection reforms to eliminate 'zombie' projects from queue

Britain's energy regulator announced reforms to the country's grid connections process on Feb. 14 in a bid to end the current "outdated and unwieldy" system that can lead to wait times of more than a decade.

The new process laid out by Ofgem would replace the existing first-come, first-served system with one that prioritizes generation and storage projects that can connect quickly and are needed to achieve a power mix that is at least 95% low carbon by 2030.

The government's 2030 ambition requires installed capacity on the grid to double over the next five years, with Energy Secretary Ed Miliband highlighting a potential GBP200 billion wave of private investment driven by the connections reforms.

Ofgem's plan could see the new system enacted by the spring.

Accelerated connection offers could then be made by the end of the year, allowing the first projects to connect from 2026.

"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power and storage is connected to electricity networks -- that's why we're cutting back the red tape and replacing the out-of-date connections system," Akshay Kaul, Ofgem's director general for infrastructure, said in a statement.

Ofgem has backed the reforms with a "minded-to" decision, with a statutory consultation underway until March 14.

The regulator's proposals build on recommendations from the National Energy System Operator, which manages Britain's power grid, and follow over two years of discussions with industry.

They form part of a wide-ranging effort by the government to reform the connections process and clear out a grid queue that now has well over 700 GW of potential capacity.

NESO recently unveiled plans to impose fees to incentivize project developers to progress through the queue or step away to allow others to progress.

The state-owned system operator received 1,700 connection applications in 2023-2024, forcing it in January 2025 to pause new applications to allow it to focus on reform.

"Promoting shovel-ready clean energy projects by removing speculative zombie schemes which are blocking them in the queue would help to reduce the huge backlog of grid connection applications across the energy sector," Barnaby Wharton, director of future electricity systems at trade group RenewableUK, said.

Beyond power generation, Ofgem said the new system will also speed up grid connections for public services, including housing, hospitals and electric vehicle charging stations, as well as new industries like data centers.

Vicky Read, CEO of EV industry association ChargeUK, said Britain is installing a new public charging point every 25 minutes.

"For the network to continue to grow at this exponential rate, so that drivers have the confidence to switch to electric, it needs to be as quick and easy as possible for our members to secure grid connections and energize their installations," Read said in a statement. "The changes by Ofgem to speed up these connections will be vital in getting more charge points in the ground, especially where they are needed the most."

S&P Global Commodity Insights reporter Alex Blackburne produces content for distribution on Capital IQ Pro.