30/01/2025
Grid Reform
It has been well documented that there are problems in the length of time that it takes to get energy generation projects connected to the grid. It has been said that delays in getting such projects connected to the grid is holding back investment in the UK and local economies. As a consequence we are in the midst of the National Grid’s grid connection reform, which is an overhaul of the way in which projects are added to the queue of projects awaiting connection to the grid.
Whereas, under the previous grid connections protocol, projects were added to the connections queue in the order that applications were received by the NESO (National Energy System Operator) or DNO, and remained moving up the queue even if the projects in the queue lacked the necessary property rights and/or funding; in the new system developers are required to demonstrate the viability of a project before progressing in the queue. Effectively NESO will transition from the first-come first-served process towards a first-ready, first-connected queuing system.
The change to the connections queue means a gate based system. Gate 1 will provide connection offers based on a co-ordinated network design connection date. Gate 2 will be used to determine queue position. Before projects will be given a firm connection date (thereby securing their position in the ‘Gate 2’ queue), they will be required to show that they ready, including having secured both necessary land rights and planning consent (whether through local planning, or the DCO process).
Grid connection reform interacts with the government’s Clean Power 2030 Action Plan (CP30), with it being expected that projects which align with CP30’s identified requirements (for technology, location and capacity) can be further moved up the ‘Gate 2’ queue.
From 29th January 2029, the NESO has informed that it is pausing acceptance of new connection applications so as to facilitate transition to the new grid connections process.
Opportunity for Local Authorities
Whilst the grid connections reform is undeniably beneficial for ensuring that projects that are ready can progress ahead of speculative projects given a connection date under the old first-come first-served system, it does present a new challenge for developers in overcoming the stringent requirements before being able to receive a firm connection date. However this challenge may of itself present an opportunity for local authorities.
Authorities with surplus land may have an opportunity to prepare and package-up projects for developers in such a way that may allow a project to progress quickly through to the Gate 2 queue. Using spare land (in particular brownfield land which has no viable alternative use), and with the benefit of local authorities’ expertise in planning process, local authority sites may become an attractive proposition for development of clean energy projects. Even where an authority doesn’t have an appetite to develop projects itself, such projects can be used as a means of securing income for an authority for an extended period of time through rent and/or profit-share arrangements.
There are also opportunities in developing direct wire connections supporting renewable power direct to high energy use bases. For example solar power or wind direct to leisure centres.
At Bevan Brittan, we have extensive experience in renewable energy projects, including with site assembly, project structuring, grid connection and power purchase agreements, together with a wealth of expertise in understanding local authorities’ challenges and drivers. Using our unique cross-set of skills we are already assisting local authorities in bringing solar farm projects to the market.
Speak with the team if you would like to discuss how we can help you with clean energy projects.
