WIREDGOV

As the end of the year approaches, it is an opportunity to reflect on the important progress we are making in all areas of connections reform and strategic energy planning. Back in April, we made our decision on connections reform proposals, kicking off NESO’s implementation. Following this, in May, we published a blog on our progress on strategic planning. We have now reached a stage where concrete progress is being made in both these areas, meaning we are moving to a reformed grid.

Connections

The way energy projects connect to the grid is changing. Connections reform will mean that the connections process is linked to strategic plans like the Clean Power 2030 Action Plan and in the future, the Strategic Spatial Energy Plan (SSEP).

A big milestone has been reached, with NESO publishing the new connections queue. Projects that are “ready” and “needed” will get Gate 2 offers, which means a confirmed connection date, connection point, and queue position. All other projects will get Gate 1 offers, which means an indicative connection.

We have worked with government, NESO, and network companies to make sure the process is clear and comprehensive. This reform is needed and a great step forward, but we remain ready to take further action to ensure ongoing success.

We’ve published decisions that make connections reform clearer and build on these reforms.

Providing clarity

Connections reform is a big change for potential projects. We’ve published guidance on disputes. Our expectation is that parties quickly use alternative routes first and only raise disputes if there’s a clear error. We’ve also published a decision which clarifies that Distribution Network Operators (DNOs) can recover costs if legal action happens. 

Going further with reform

We know that more action is needed to ensure we get the most viable projects connecting that are needed by the system. We’re introducing a 'Progression Commitment Fee' for generation and storage projects. It will only apply when triggered and will mean that projects must show they are moving forward progressing earlier in the process.  

We set out guidance on the significant increase in demand connections, especially from data centres. We are thinking about the future changes we might need across 3 pillars:

Curate: a queue that ensures projects are progressing towards connection; this includes looking at stronger entry and progression requirements to manage the queue.

Plan: supporting government to prioritise strategic demand, including supporting a government strategic plan for data centres.

Connect: provide new solutions to speed up and increase the number of connections: including who could own and operate network build connecting to the transmission system.

Improving accountability

Alongside connections queue reform, we expect network companies and NESO to play their part in an improved connections process. Our ‘Connections end-to-end review’ is where we lay out the changes we need to see and is a major priority for Ofgem in 2026.

We are introducing changes to:

• improve provision of quality connections data
• raise customer services standards for connecting customers
• set stronger rules for timelines so connection dates set by networks are ambitious—and met

Connections reform, the latest price control settlement for RIIO-3 and our end-to-end review, creates a framework that identifies which projects will connect, builds the network needed for those projects, and strengthens requirements to ensure timelines are met.

Our Connections Delivery Board will now focus on actions for demand connections, the end-to-end review, and any future changes needed to make the connections process more effective. We’ll ensure the membership of this board reflects these new priorities.

Strategic Planning

We are moving to a system that plans energy and networks needs at both national and local levels.

Energy Planning

The ‘Strategic Spatial Energy Plan (SSEP)’ will outline what power generation is needed, and where, to reach net zero by 2050. It will have political backing and builds on the Clean Power 2030 Action Plan.

The SSEP brings two major benefits, which will:

• inform investors on what projects are needed, where, and when
• lead to better network planning, so energy networks can be built ahead of need 

Timelines have moved back, with the SSEP now due to publish in Autumn 2027. We are supportive of the most recent public data being used, noting that these plans will always need to manage uncertainties.

Transmission Network Planning

The ‘Centralised Strategic Network Plan (CSNP)’ is a whole system plan to 2050, which will set out the network we need to move power, hydrogen and gas across the system. It will use the SSEP as its main input. This ensures supply meets demand and constraint costs are managed. We have published guidance on how the Centralised Strategic Network Plan should be developed, and NESO’s methodology will follow this.

The full CSNP is now due in 2028, so we need transitional plans now for electricity. These will keep work going on building the electricity network we need in the 2030s. The next update, called ‘tCSNP2 refresh’, will be published in June 2026. It will use the best data that we have today and will reflect connections reform outcomes. This will come before the SSEP, so there is a risk of inconsistency that we will monitor, but investment must continue so the network is ready for the mid-2030s.

Regional planning

Regional energy planning must align with national plans. In 2028, NESO will create 11 Regional Energy Strategic Plans (RESPs) covering 9 regions in England, plus one for Scotland and one for Wales. NESO is consulting on how these RESPs will be designed. These cover electricity, gas, hydrogen, and heat providing consistent demand and supply projections and directing where network investment is needed as the system decarbonises. Network operators will then align their investment plans with the direction set by the RESP and invest accordingly.

Like national plans, transitional RESP plans are needed to keep progress moving. These will focus on the next price control (ED3) and improve consistency across regions while meeting local need. The transitional RESP (expected January 2026) is one of many inputs into DNO network and investment planning for ED3.

Looking Ahead

In 2026, customers that have successfully gone through the connections reform will receive full Gate 2 connection offers with confirmed dates, costs, and locations. We will make the regulatory changes to make the connections end-to-end review changes happen and introduce further improvements to connections, including on demand connections. In strategic planning, we will set up regulatory frameworks for all strategic plans. The pathway for the enduring Strategic Spatial Energy Plan (SSEP) will be chosen, and transitional plans will ensure investment during the interim period.

Lots of progress is being made, with more to come next year. We know that this is lots of change, but ultimately, GB energy policy is moving to a place where top-down strategic planning aligns with bottom-up connections reform. This means investment can be better directed, and we will have a more coordinated energy system.