Ofgem is expected to confirm 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.
Ofgem is expected to confirm the ambitious new plan later today (Tuesday 15 April), 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 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:
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:
Kayte O’Neill, Chief Operating Officer, National Energy System Operator, said:
Tom Glove, UK Country Chair, RWE said:
Dhara Vyas, Chief Executive Energy UK, said:
Minal Patel, Global Head of Infrastructure, Schroders Capital:
Richard Ballantyne OBE, Chief Executive, British Ports Association said:
Ben Fletcher, Chief Operating Officer, Make UK, said:
Lawrence Slade, Chief Executive, Energy Networks Association, said:
Alice Delahunty, President of Electricity Transmission, National Grid, said:
Clare Jackson CEO, Hydrogen UK said:
Barnaby Wharton, Director of Future Electricity Systems, RenewablesUK, said:
Roderick MacLeod, Energy Director, Glen Earrach, said:
James Basden, Founding Director, Zenobe:
Notes to Editors