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National Grid Electricity System Operator (ESO) has set itself a “challenging” go-live date of 1 January 2025 to implement its “first ready, first connected” connections reforms.
The ESO has confirmed that it is progressing with its recommended model to tackle the connections queue backlog, which now stands at 420GW of generation projects seeking to connect.
Its favoured model – backed by the majority of respondents to a consultation – introduces an early application window and two formal gates, to track project progression and “hold developers to account”.
The first gate would provide connection offers based on a co-ordinated network design connection date.
A second gate would then determine queue positions based on whether projects have met certain milestones, such as submitting planning consents. “Priority projects” would also be identified at this stage that are viable for being accelerated.
The ESO currently anticipates the window being annual with applications considered within the first three months and offers issued after nine months.
In addition to current entry requirements developers would need to submit a “letter of authority” (LoA), demonstrating land has been identified and its owner engaged.
The ESO’s Final Recommendation Report adds that “due to overwhelming support […] from mid-December, we intend to request LoAs on a voluntary basis from new and existing applicants.
“In parallel we expect to raise code modifications for the introduction of the LoA under the urgency criteria for code modifications in December 2023, with a view to provision of an appropriate LoA being a mandatory requirement for new applicants from Q2 2024.”
The report adds that the ESO also intends to provide access to “significantly improved self-service tools by end March 2024”.
A new Connections Process Advisory Group (CPAG) will also be set up from January 2024, with an independent chair, “to enable industry to steer the detailed process design and code modifications within the parameters set out in our final recommendations”.
On the target go-live date, the ESO report adds: “The 1 January 2025 proposed go-live date is challenging, but achievable with substantial input and commitment from delivery bodies and industry, particularly those involved in the CPAG and code modification work groups. We look forward to working collaboratively with industry to deliver changes robustly and at pace.”
The ESO’s head of networks and chief engineer Julian Leslie said: “Our new reformed process will prioritise the connection of viable projects, reduce times to connect for new and existing projects, deliver greater benefits for consumers and speed up the delivery of the energy mix required to meet net zero.
“These longer-term reforms will align with wider government and regulatory policy and ensure the connections process is flexible and future-proofed to support the future coordination of network design.”
Under new rules approved by Ofgem in November, the ESO will also be able to remove projects from the connections queue if they fail to meet a number of milestone agreements.
Last month, the ESO announced that it has already identified 144 “high risk” projects which are now at risk of having their grid connection agreements terminated as early as next year.
The 144 “zombie” projects at risk of being removed account for around 29GW of capacity.
The ESO has also cleared around 5GW of stalled projects in the past year as part of its Transmission Entry Capacity amnesty.
The ESO’s Final Recommendation Report adds that further initiatives are being explored to speed up connections.
These include “steps to significantly reduce or reorder the current connections queue or create more capacity on the network more quickly so that projects that are readier to connect are able to connect more quickly”.
The report adds that possible options “are a mix of one-off actions (e.g. to materially reduce or reorder the current queue) that would be introduced before or in parallel to go live of the reformed process; and enduring actions that could be easily incorporated into the design of the reformed connections process at or following go live”.
One specific option being explored is a “a brief moratorium on new connection applications to allow more time for network companies and customers to become accustomed to and transition towards the new processes and arrangements”.
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