Grid connection for clean energy firms to be fast-tracked, ministers say
Grid connections for businesses delivering clean energy are to be prioritised, ministers have said.
The government has said so-called ‘zombie projects’ which hold up the queue for National Grid connectivity are set to be axed from the waiting list.
While industries including data centres and AI, wind energy and solar projects will be accelerated for grid connections, under plans by the Department for Energy Security and Net Zero (DESNZ), aimed at addressing the issue of firms waiting up to 15 years for connectivity.
The move comes after some £43.7bn of private investment has been announced into the UK’s clean energy industries since July, the department said, while the grid connection queue has grown tenfold in the last five years.
It comes amid wider questions about the costs of energy, and uncertainty over the UK’s industrial future, as the government battles to keep the British Steel furnaces at Scunthorpe going.
Ofgem is expected to confirm the ambitious new plan later today [Tuesday], which is drafted by the National Energy System Operator (NESO) in partnership with the energy industry, DESNZ added.
Energy secretary Ed Miliband said: “Too many companies are facing gridlock because they cannot get the clean energy they need to drive growth and create jobs.
“These changes will axe ‘zombie’ projects and cut the time it takes to get high growth firms online while also fast-tracking connections for companies delivering homegrown power.”
He added: “In an uncertain world, our message to the global clean energy industry is clear… if you want certainty, stability and security when it comes to investments, choose Britain.”
Projects which are not ready or not aligned with strategic plans will be deprioritised, DESNZ said, as they argued lack of access to grid connections has been a significant factor holding back new investment in UK industries, including artificial intelligence (AI).
And the department said that the changes would save some £5bn on unnecessary grid connections, which would have been funded via charges on customers’ energy bills.
Jonathan Brearley, CEO of Ofgem, said the “proposed connection reforms will supercharge Great Britain’s clean power ambitions with a more targeted approach”.
He said the changes would “cut through red tape, consign ‘zombie projects’ to the past and accelerate homegrown renewable power and energy storage connections”.
While Kayte O’Neill, chief operating officer at NESO said grid reforms were a “key enabler” and “will drive economic growth”, with the focus on “prioritising agreements for projects that are critical and shovel ready… giving developers the certainty they need”.
Sam Richards, CEO of pro-growth campaigners Britain Remade, said: “Any steps to speed up the time it takes for infrastructure projects to secure a grid connection are welcome news.
“It’s ridiculous that projects which will never get off the ground are allowed to squat in the grid queue year after year, simply by paying a few thousand pounds, while much needed new energy sources and growth-driving AI data centres are forced to wait years.
He added: “Ministers prioritising economy-boosting and clean energy-producing projects in the grid connection queue is an important first step.
“But the government can’t run the queue forever and should look at introducing more market mechanisms to allow priority projects to bid to move up the line.”