So-called ‘zombie’ projects will no longer hold up the queue for connection to the electricity grid to prioritise businesses that will drive growth and deliver energy security.
Companies are currently waiting up to 15 years to be connected to the grid leaving promising businesses ‘grid-locked’, and over the last five years, the grid connection queue has grown tenfold.
Ofgem is expected to confirm the ambitious new plan later today, drafted by the National Energy System Operator in partnership with the energy industry.
The reforms will help unlock £40 billion a year of mainly private investment, growing the economy, creating jobs and raising living standards. This builds on the latest figures showing that since July, the clean energy industry is now booming in Britain, with £43.7 billion of private investment being announced into the UK’s clean energy industries.
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 and energy security through our Plan for Change.
“In an uncertain world, our message to the global clean energy industry is clear; come and build it in Britain because we are a safe haven. If you want certainty, stability and security when it comes to your investments, choose Britain.”
The plan comes after the Prime Minister has said that a new era of global insecurity means that the government must go further and faster reshaping the economy through the Plan for Change, and that this requires a new muscular industrial policy that supports British industry to forge ahead.
Lack of access to grid connections has been a significant factor holding back new investment in UK industries.
Under the new changes, industries of the future from data centres and AI, to wind and solar projects, will be accelerated for grid connections.
That means deprioritising those projects that are not ready or not aligned with strategic plans.
New commitments to investing in the UK have topped £38 billion since July 2024 for data centres alone, but grid access is the single biggest challenge facing these projects.
Ofgem CEO, Jonathan Brearley, Chief Executive Officer, Ofgem said, “The proposed connection reforms will supercharge Great Britain’s clean power ambitions with a more targeted approach anticipated to unlock £40 billion a year of investment and energise economic growth.
“Houses and hospitals, electric vehicle charging stations, data centres and the emerging AI sector, would also all benefit from the proposed streamlined fast-track approach, which would help boost energy security and drive down bills.”
Kayte O’Neill, Chief Operating Officer, National Energy System Operator, said, “Reforming the connections process is a key enabler for delivering Clean Power by 2030 and will drive economic growth for Great Britain. Today’s milestone reflects the close collaboration across the energy industry with support from the Government and Ofgem.
“Together with the wider energy industry, NESO will focus on prioritising agreements for projects that are critical and shovel ready, bringing these to the front of the queue and giving developers the certainty they need to support investment decisions.”
Greenpeace UK’s head of politics, Ami McCarthy, said, “Our energy grid is more congested than the Glastonbury website when tickets go on sale. The situation is a joke and it’s high time the government sorted it out. This new use it or lose it approach is exactly what we need to get rid of the blockers and get more renewable energy projects online.
“With the green sector growing at three times the rate of the UK economy, the government can have its cake and eat it – boosting growth, slashing emissions and lowering bills. But, while the system continues to be rigged in favour of the gas industry, the price of power and our energy bills will remain high. So, in addition to reducing the grid-lock, the government must deliver policies that regain control of our energy system and stop expensive gas from setting the price of electricity.”
Sam Richards, CEO of pro-growth campaign group 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, simpl by paying a few thousand pounds, while much needed new energy sources and growth-driving AI data centres are forced to wait years for a connection.
The Government should look at introducing more market mechanisms to allow priority projects to bid to move up the line – without this hundreds of millions of pounds will be wasted paying wind turbines to turn off while other clean energy projects continue to languish in the queue.”
