The UK’s Office of Gas and Electricity Markets (Ofgem) is expected to confirm a new plan drafted by the National Energy System Operator (NESO) to reform grid connections in the country.
The plan aims to prioritise clean energy projects, unlocking £40bn ($52.8bn) of investment annually and addressing the backlog caused by “zombie” projects that have delayed grid access for up to 15 years.
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The reform is part of the government’s Plan for Change, which focuses on economic growth and energy security.
The changes are expected to stimulate the economy, create jobs and improve living standards. NESO’s collaboration with the energy industry aims to accelerate grid connections for future industries, such as data centres, AI, and wind and solar projects.
UK Prime Minister Keir Starmer’s recent statements highlight the need for a new industrial policy to support British industry amid global insecurity.
The plan aligns with this vision by deprioritising projects not ready or not aligned with strategic goals.
This approach is expected to save £5bn in unnecessary grid reinforcement costs.
Ofgem CEO Jonathan Brearley stated: “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.”
Since July 2024, the UK has seen £43.7bn in private investment in clean energy, with £38bn committed to data centres alone.
However, grid access remains a significant challenge.
The reforms aim to fast-track projects, generating renewable electricity and reducing reliance on global fossil fuel markets.
NESO chief operating officer Kayte O’Neill stated: “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.”
