Ofgem unveils reforms to accelerate grid connections, tackle “phantom” projects

Last week, Ofgem announced a comprehensive plan to expedite grid connections. It will challenge network operators to connect renewable and storage projects faster. These proposed reforms, aimed at unclogging the 722 GW grid connection queue, come as National Energy System Operator Limited (NESO) releases its Clean Power Plan.

The overhaul prioritises projects that can become operational within five years and ensures they contribute effectively to the UK’s renewable energy mix. By tightening the application process, Ofgem aims to weed out speculative, stalled, and “phantom” projects that have hindered grid access for viable projects.

Eleanor Warburton, Ofgem’s Director for Energy System Design and Development, emphasised the importance of moving rapidly to support the government’s 2030 decarbonisation target. She said, “It’s vital that we can get clean, secure, and homegrown electricity flowing through the grid as quickly as possible,” she said.

What does this mean for the energy industry?

The proposed changes would introduce stricter regulations and higher standards for network operators, holding them accountable for meeting connection deadlines through tougher licence conditions and new performance metrics. Should these standards not be met, operators could face financial penalties or enforcement actions within a year, marking a shift toward stringent accountability measures.

The reforms also include enhanced protections for customers connecting to the grid, addressing issues like delays stemming from “poor practice” by regulated network operators. If implemented, this would establish a compensation scheme for affected customers, encouraging operators to complete connections promptly and transparently.

With grid modernisation critical to Britain’s energy transition, Ofgem’s move signals an increased drive for accountability and efficiency, aiming to balance renewable supply and demand, while ensuring Britain meets its clean energy goals by 2030.