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Daily Newsletter

11 November 2024

Daily Newsletter

11 November 2024

Ofgem calls on network operators to fast track renewables connection to grid

The regulator plans to prioritise projects that can become operational within five years.

Umesh Ellichipuram November 11 2024

The UK's Office of Gas and Electricity Markets (Ofgem) has urged network operators in the country to speed up the connection of renewables, clean power, and storage projects to the grid.

This comes as Ofgem sets out proposals to revamp the system for getting new projects linked to the energy system, accelerating the process and preventing it from being hindered by unviable systems. 

Ofgem aims to reduce the current queue of 722GW of projects awaiting connection.

The regulator plans to prioritise projects that can become operational within five years and help achieve the government's 2030 target by ensuring the optimal mix of renewable generation types located in the right areas and operating at the appropriate voltage.

However, Ofgem emphasised that a new process alone will not suffice.

It indicated that tighter regulations are essential to elevate service standards and maximise the benefits of the system.

This week, Ofgem and the government outlined their expectation that the timeline for connecting new wind, solar, and storage projects to the grid should be significantly reduced, coinciding with the National Energy System Operator's unveiling of its Clean Power Plan and connection reform proposals.

The regulator's end-to-end review has analysed each stage of the connection process across Great Britain’s three high-voltage transmission and 14 distribution operators.

Despite network companies managing a record volume of connections, new regulations are necessary to enhance customer service and prevent delays.

Ofgem proposes that companies could face stronger licences, financial penalties, and stricter enforcement if they fail to meet the new milestones and deadlines, with these measures expected to be implemented within 12 months.

Ofgem Energy System Design and Development director Eleanor Warburton said: “If we are to hit our 2030 target, it is vital that we can get clean, secure and homegrown electricity flowing through the grid as quickly as possible. 

“This is why we are overhauling the application system to cut down on delays to the hundreds of approved projects that are ready to connect to the grid; this will in turn block hundreds of unviable, stalled and speculative schemes in the process.

“Today we are also proposing tough new rules to ensure networks connect to the grid quickly, reliably, and using every part of their network capacity. We are also looking at strengthened protections for customers connecting to the grid if they receive poor service in order to keep investment flowing.”

In August this year, Ofgem approved the fast-tracking of the Anglo-Scottish electricity 'superhighway', clearing the project’s final funding hurdle.

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