Ofgem
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Fast-tracked grid connections could be in place in months under new proposals
Recently (Friday 8 November) Ofgem called on network operators to get renewable, clean power and storage projects connected to the grid faster, whilst providing connecting customers with higher standards of service along the way.
The call comes as Ofgem sets out a series of proposals to overhaul the system for getting new projects connected to the energy system, speeding up the process and preventing it from being clogged up with unviable systems.
If approved, the new approach would slim down the 722GW of projects in the queue, with schemes prioritised if they can be operational within five years and contribute to the right mix of renewable generation types in the right location and at the right voltage to hit the Government’s 2030 goal.
However, a new process on its own is not enough – tighter regulations are needed to drive up standards and ensure the new process delivers maximum benefit.
This week (Tuesday 5 November) Ofgem and Government set out its expectation that the time it takes for new wind, solar and storage projects to connect to the grid should be slashed, as NESO unveiled its Clean Power Plan and connection reform proposals.
Eleanor Warburton, Director for Energy System Design and Development at Ofgem, said:
“If we are to hit our 2030 target, it’s vital that we can get clean, secure and homegrown electricity flowing through the grid as quickly as possible.
“This is why we’re 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. Without this, we risk falling short of providing cleaner, more affordable and more secure energy for everyone.”
The ‘end to end’ review has analysed and assessed each stage of the connections process across Great Britain’s three high-voltage transmission and 14 distribution operators to look at where changes can be made to help approved projects connect to the grid as soon as possible.
The report notes that, whilst network companies are handling a record volume of connections, tough but fair new regulations are required to improve customer service and stop timelines slipping to ensure they hit deadlines.
Ofgem is proposing companies could face stronger licences; financial penalties; and tougher enforcement if they don’t hit stricter milestones and deadlines – with the tougher regime in place within 12 months.
Notes to Editors
View the End to End review consultation.
Earlier this week (Tuesday 5 November), ministers pledged to legislate in a joint-letter with Ofgem on to underpin the reforms and limit legal challenge.
The report backs up NESO’s independent advice to ministers on accelerating connections to achieve clean power by 2030: Clean Power 2030 | National Energy System Operator. It comes alongside Ofgem’s plans to free up network companies to accelerate investment from 2026: RIIO-3 Sector Specific Methodology Decision for the Gas Distribution, Gas Transmission and Electricity Transmission Sectors | Ofgem
The review is targeting behaviours and outcomes across seven key themes:
- Visibility and accuracy of connections data – good quality, useful data must be made available transparently to customers to inform their connection applications.
- Improved standards of service across the customer journey – Connecting customers must receive a high standard of service at all stages of the customer journey, from pre-application to energisation.
- Network companies being required to meet connection dates in connection agreements – Network companies and NESO should be required to meet agreed customer connection dates in connection agreements.
- Quality of connection offers and associated documentation – Network companies and NESO should be required to issue high-quality offers and information to connecting customers.
- Ambition of connection offers – Network companies and NESO should be required to offer connecting customers ambitious, “fast as possible” connection dates.
- Minor connections – Minor connections customers, i.e. those seeking to make connections at low voltages like EV chargers and heat pumps, should receive a high standard of service from networks.
- Provisions and guidance for determinations – Ofgem’s role in managing complaints and issuing determinations must be clear to all parties.
Company
National Energy System Operator Limited
Original article link: https://www.ofgem.gov.uk/press-release/fast-tracked-grid-connections-could-be-place-months-under-new-proposals