Oil and Gas News
Ofgem Introduces New Rules to Address Stalled Energy Projects in Grid Connection Queue
The UK energy regulator, Ofgem, has announced policy changes to tackle the backlog of stalled or non-viable energy projects in the electricity grid connection queue. The current 'first-come, first-served' system will be replaced with stringent measures to expedite connections for viable projects while addressing obstacles posed by stalled or speculative developments.
The reform aims to prioritize the connection of viable projects and eliminate inefficiencies in the grid connection process. The backlog of projects in the queue has the potential to generate nearly 400 gigawatts (GW) of electricity. The changes respond to challenges such as a high attrition rate of 60 to 70% for slow-progressing projects, an increasing gap between requested and offered connection dates, and over 40% of 400 GW capacity facing connection dates of 2030 or beyond.
The new queue management milestones, effective from November 27, empower National Grid ESO (Electricity System Operator) to enforce strict project stage milestones. Projects failing to meet these milestones will face termination, ensuring that only viable and timely projects progress in the queue.
Eleanor Warburton, Ofgem’s Deputy Director for Institutions for Net Zero Energy Systems Management and Security, emphasized the goal of bringing new power to the grid quickly. The changes aim to reward projects that are ready to connect sooner while discouraging the blocking of progress by projects that are not prepared.
The reforms align with the broader efforts to enhance the efficiency and effectiveness of the UK's energy infrastructure, supporting the transition to a low-carbon and resilient energy system.