Source · Select Committees · Environmental Audit Committee
Recommendation 16
16
Deferred
Paragraph: 89
Delays in grid connections for renewable projects impede energy security and investor confidence.
Conclusion
Delivery of renewable energy projects at pace, and securing their connection to the transmission network, is essential to achieving the generation capacity required under the Government’s strategy for energy security. The connection of generation capacity to the grid is being held up by delays to the ‘critical path’ of grid readiness. Delays in project connections are unlikely to improve the confidence of investors in electrification projects. While the connection reforms brought in by Ofgem and the commencement of implementation of the Connection Action Plan measures are welcome, further work is likely to be required to reduce the time taken to connect generation projects to the transmission grid.
Government response summary AI-generated
The government's response addresses proposals to increase planning fees and support for local planning authorities, funded by the stamp duty surcharge, rather than directly detailing further work to reduce grid connection delays for renewable energy projects.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
89
Government Response
Deferred
HM Government · verbatim extract
Deferred
Government and Ofgem are working at pace with the National Energy System Operator (NESO) and network companies to accelerate connections. In March 2024, Ofgem granted urgency status to code modification proposals for a reformed connections process5 that would require new and existing projects to demonstrate sufficient progress to obtain and retain a connection agreement. The capacity released will enable accelerated connection of viable generation and demand projects that align with our strategic needs, including ensuring projects necessary for 2030 Clean Power can connect in time. DESNZ and Ofgem published a joint open letter in November 2024 supporting proposals to align grid connections with strategic plans and announcing government’s intention to legislate to ensure the connections process enables delivery of the Clean Power by 2030 ambition.6 NESO plans to submit proposals and options for connections reform to Ofgem by the end of 2024. Ofgem is expected to make a decision on proposals in early 2025. DESNZ and Ofgem agree on the need to actively monitor progress on connections reform. This is done through the Connections Delivery Board,7 which also provides strategic direction to industry where further action is required. The Department has established a senior stakeholder group convened by the Minister for Energy to monitor actions across the Electricity Networks programme including those on connections reform. Ofgem has worked with the Energy Networks Association (ENA) to ensure data on the status of the connections queue is collected from network companies and made publicly available on a regular basis. This data is now published on a monthly basis on the ENA website.8 Ofgem and Government continue to work with NESO and network companies to implement connections reform. This includes revising network modelling assumptions and allowing projects to connect ahead of network capacity being permanently available. This is already accelerating connections for renewable generation and storage projects. Longer-term connection reforms are also underway to ensure viable generation and demand projects that are aligned with net zero, Clean Power 2030 and other energy objectives can connect to the network faster.
Read the full response on Parliament ↗