Source · Select Committees · Business and Trade Committee
Recommendation 45
45
Deferred
Paragraph: 194
Enable National Grid ESO to require projects meet strengthened grid connection milestones.
Recommendation
The UK’s “first come first served” approach to grid connections is failing to deliver the volume of connections required. Projects which may be speculative or slow-moving risk being prioritised over those that are more viable. While we welcome National Grid ESO’s five-point plan to tackle queue management issues at the transmission level, we do not believe this has proved successful to date. We recommend that Ofgem allows National Grid ESO to require projects already in the queue to meet strengthened milestones. If projects are unable to meet these, network operators should be able to prioritise other more viable projects in the queue. In response to this report, we ask that National Grid ESO explains what steps it is taking to work with the Distribution Network Operators to stop projects that want to connect to the distribution network getting stuck in the transmission queue. We would welcome direct intervention from Government on these issues if required.
Government response summary AI-generated
The government highlights its consultation on the Strategy and Policy Statement (SPS) for Energy Policy and the establishment of the Future System Operator (FSO), which will manage electricity and gas networks. The response outlines these ongoing policy and structural developments, but does not directly commit to changing the 'first come first served' grid connection approach, strengthening project milestones, or requiring National Grid ESO to explain DNO collaboration.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
194
Government Response
Deferred
HM Government · verbatim extract
Deferred
102. World-leading investment in renewable generation in the UK has meant network operators have experienced record demand for connections to the electricity network and reducing connection timescales is a high priority for Government. Decarbonisation of the power sector: Government Response 21 103. For transmission network connections, the ESO is leading work on modifications to the Connection and Use of System Code that would allow enforceable milestones to be inserted into transmission connection agreements4. The ESO expects to put proposals to Ofgem for a decision in June 2023. Distribution network operators (DNOs) have been inserting enforceable milestones into connection agreements since 2017. DNOs are now identifying connection agreements prior to 2017 that are still in the connection queue, to insert milestones or remove the projects from the queue5. Ofgem has published its support for this action as part of its Open Letter on connections reform6. 104. More widely, the Government is working with Ofgem and network companies to release network capacity and to improve the connection process in order to reduce connection timescales. This includes improving processes at the transmission and distribution interface, such as how the impact of distribution connections on the transmission network is assessed, to remove, or reduce, dependency on the transmission network for distribution network connections. Details are available on the ESO7 and Energy Network Association8 websites. Actions by the ESO alone are expected to see a reduction in transmission connection timescales of 2–10 years, for the majority of existing projects9. In addition, the Government has committed to publishing a Connections Action Plan10, jointly with Ofgem, in the summer, which will set out actions to reduce connection timescales and build on the existing work.
Read the full response on Parliament ↗