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Stalled energy projects will be told to “get on, get back or get out” as part of reforms to the connections queue for the transmission network to make way for projects that are moving forward.
Generators that are unable meet their connection date, or milestones along the way, will have to choose between moving backwards in the queue or leaving it entirely.
These “common sense” milestones will include raising finance, buying land, securing planning permission and breaking ground.
The Electricity System Operator (ESO) has revealed more details of its previously announced reforms to the way it manages the connections queue.
National Grid ESO said there are around 220 projects due to connect to the transmission network before 2026, totalling roughly 40GW of capacity. However, only half of these projects have secured planning consent and some have been delayed by up to 14 years.
The body has written to developers seeking to connect to the transmission network to ask for updates on their progress and identify non-viable projects. An engineering consultancy has been hired to help check whether milestones are being met and a legal firm has been retained to ensure any contractual changes are rapidly executed.
The changes, which the ESO said could cut connection times for some projects by up to 10 years, will not affect projects held back by network delays outside developers’ control.
The ESO has proposed a modification to the Connection and Use System Code (CUSC), designated CMP376, to implement the new queue management process. The modification has already been voted on by the CUSC panel and a final report containing its recommendations will be issued to Ofgem next week to inform its approval decision.
To further speed up connections, the ESO said it is supporting another CUSC modification to enable developers to build their own connections to the grid. The modification, proposed by Energiekontor UK and designated CMP374, would allow developers to build up to 5km of connection infrastructure. The final modification report was published on Wednesday (31 May).
The ESO said it is also changing how it calculates project connection dates and is working with transmission owners to review and update existing contracts with these new Construction Planning Assumptions.
It said it will soon be updating contracts to implement its Transmission Entry Capacity amnesty, which allowed projects to leave the connection queue without incurring penalties and received interest from 8GW of projects by the time it closed in April.
The ESO has additionally provided an update on its plans to speed up connections for battery storage schemes, which comprise more than a third of the projects in the queue.
Projects will be offered a non-firm connection, thereby removing the requirement for network reinforcements to be completed to enable them to charge or discharge at full capacity at all times. The only works they will need to wait for are those that are essential to build physical connection to the network (such as a substation or bay), mitigate fault level issues, or meet safety requirements.
In exchange, projects will be subject to occasional curtailment without compensation.
These “non-firm” connections were previously only available for the planned or unplanned availability of specific circuits. The ESO said it is expanding the concept of non-firm connections to include intact system conditions.
“This means that there will be certain operational scenarios such as when it is windy and storage is contributing to the local constraints, where we may pull them back even if the network is intact,” the ESO explained in a new policy paper.
“This approach frees-up transmission system capacity and significantly accelerates the connection of storage providers. However, it does mean that we will need to develop specific contractual conditions and commercial/operational tools to cater for times where access may need to be restricted.”
The ESO said it is developing a standard non-firm clause to add into storage connection contracts, which it will share with industry “as soon as we can”.
A number of these changes were initially announced as part of the ESO’s five-point plan for speeding connections released in February.
Reaction
Commenting on the latest update, Octopus Energy Generation chief executive Zoisa North-Bond, said: “It’s brilliant to see this announcement as we’ve long suggested quick practical steps like queue-jumping to help deal with huge delays in connecting projects. It’s great that National Grid ESO is also finally opening up competition in this space.
“While it’s a positive step in the right direction, the devil is in the detail. We’re past the point of polite processes. What we need is fresh thinking beyond the concept of ‘a queue’, like concrete dates to implement steps, a firmer stance on prioritising renewables over fossil fuels, and better use of data to show where projects can connect quicker.
“This will end the gridlock, unlock Britain’s colossal renewables potential and bring down bills for good.”
Barnaby Wharton, director of future electricity systems at Renewable UK, said: “This announcement is a significant step forward, as it will unlock new clean energy capacity faster by letting projects which are ready to connect to the grid move ahead of projects that simply aren’t making progress.
“Rather than allowing speculative bids for grid connections to pile up and create the backlog, these reforms mean that inactive or unready schemes will no longer be allowed to block projects which are ready to go live.”
Wharton said connection delays are already holding back £15 billion of investment in offshore wind alone over the current decade, with some projects currently having to wait up to ten years for a connection.
He said: “The next key step forward would be for ministers to sign off the amendment to the Energy Bill currently going through parliament to give the regulator Ofgem a new remit which specifically puts achieving the government’s net zero goal at the heart of every decision it takes.”
Roisin Quinn, director of customer connections at National Grid, said: “These are positive new steps which bolster recent measures introduced by the ESO, transmission owners and DNOs to help customers and speed up connections. It shows how joined up we are working across the sector in delivering much needed reform to meet Britain’s bold climate goals.
She continued: “We also support giving projects more choice in the delivery of infrastructure relating to their connection and will work with industry to ensure any changes represent value to the consumer and recognise the need to closely coordinate network planning and investment for net zero.”
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