Clean Energy Projects Prioritised for Grid Connections

Ofgem has confirmed the National Energy System Operator's ambitious new plan to reform grid connections and unlock billions of investment.

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 5 years, the grid connection queue has grown tenfold.      

The changes will help to kick-start the economy to put more money in working people’s pockets, the first priority of the government’s Plan for Change. 

The reforms will help unlock £40 billion a year of mainly private investment, growing the economy, creating jobs and raising living standards as a key part of the government’s Plan for Change.

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. 

Today’s reforms will help fast track projects to generate homegrown, renewable electricity into homes and businesses, protecting British billpayers from the rollercoaster of global fossil fuel markets and building an energy system that can bring down bills for good.  

Delivering these reforms will help unleash £40 billion a year of mainly private investment in homegrown clean power projects and infrastructure across the country, creating good jobs across the country including engineers, welders and construction workers.  

By taking a strategic, planned approach the changes will remove the need for tens of billions of pounds of unnecessary grid reinforcement, saving billpayers £5 billion that would have been funded through charges on bills. 

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.   

"The reforms would cut through red tape, consign ‘zombie projects’ to the past and accelerate homegrown renewable power and energy storage connections as we head to 2030.   

"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"