Ofgem, the UK’s energy regulator, has announced measures to streamline the process of connecting wind and solar farms to the country’s electricity grid by removing stagnant or “zombie” projects from the queue. This initiative aims to address the backlog of energy projects awaiting grid connections, which has hindered investment and the nation’s transition to cleaner energy sources.
Currently, projects are connected to the grid on a first-come, first-served basis, resulting in some developers waiting for up to 15 years to generate electricity for homes and businesses. In certain instances, developers secure a grid connection contract but do not progress the project, potentially intending to sell the connection later. These projects encompass onshore and offshore wind farms, solar installations, and battery storage facilities. The first terminations are anticipated in the coming year.
Under the new rules, Ofgem will empower the National Grid’s electricity system operator (ESO), which manages the process, to terminate projects that fail to meet specific milestones, including proof of funding or planning permission. This policy will apply to all projects scheduled for connection after November 2025.
The ESO has reported that between 60% and 70% of projects in the queue ultimately do not materialize or connect. The number of projects in the queue surged from 600 in May to 1,000 by September. The average waiting time for a grid connection increased from 18 months in 2019-20 to five years in 2023.
Ofgem estimates that if all projects in the current queue were developed, they would generate 400 gigawatts (GW) of electricity, far surpassing the UK’s existing power capacity of approximately 65GW. However, over 40% of these projects hold connection contracts with dates set for 2030 or later, with some as late as 2037.
Eleanor Warburton, an Ofgem director, emphasized the need for urgent changes to the electricity connections system to accelerate investment, network development, and new technologies in line with the transition to net zero emissions. She stated that the new measures are a significant step toward phasing out the first-come, first-served queueing system, aiming to connect new power sources to the grid more promptly.
Julian Leslie, the chief engineer and head of networks at the ESO, welcomed Ofgem’s new rules, enabling the proactive termination of dormant projects in the connections queue, which will help expedite the adoption of clean energy solutions.