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Annual application windows would be introduced for developers wanting to connect to the transmission grid under new proposals.
National Grid Electricity System Operator (ESO) has outlined this “radically different” approach as its preferred option to ease the backlog in the connections queue. However, it warned that unless government or Ofgem step in to speed up the process, reforms will not be possible until the end of 2025.
It also cautioned that for some developers a “more radical departure from the current arrangements”, such as its favoured model, would increase the time it takes to get a connection offer. This could especially be the case for small and medium embedded generation projects, the ESO admitted.
Under any change to the process for grid connections, a review of fees would be needed.
In a new consultation on its connections reform project the ESO set out a variety of options, ranging from a “status quo plus” to a full move towards central planning, with a range of models based on introducing an extra gate to the process.
Its favoured model is a variation on the latter option, introducing an early application window and batched assessment of projects leading up to the first gate, where a full connection offer would be provided. A second gate would then determine queue positions based on whether projects have met certain milestones, such as submitting planning consents.
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”, demonstrating land has been identified and its owner engaged.
The ESO said this option provided the greatest opportunity for earlier connection dates, was a fair and efficient way of enabling a ‘first ready, first served’ approach and would promote the development of a more co-ordinated network design.
The consultation suggested setting aside some additional capacity within each window to be allocated by the electricity distribution networks. The ESO said this recognised the “dynamic nature” of connections at this level.
There is currently a backlog of 280GW of projects in the transmission queue, with connection timelines stretching out to the late 2030s in some cases. However, 70% of these projects are deemed unlikely to ever connect.
In response the ESO has implemented a five-point plan, including an amnesty for projects to leave the queue, the introduction of construction planning assumptions and changes to the way energy storage projects can connect.
Introducing the consultation the ESO’s head of networks, Julian Leslie, acknowledged the “clear and urgent need to reform Great Britain’s electricity transmission connection process”.
He said the initial recommendations would deliver “significant overall cost savings for consumers through coordinated network design and significantly reduced times to connect through more efficient management of contracts and capacity”.
He welcomed the engagement from industry, Ofgem and government to date, adding: “Although our initial recommendations would require significant changes to regulations and industry codes, there is an opportunity now to work together creatively and ambitiously to expedite these reforms.”
The consultation will remain open until 28 July.
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