NESO takes next step in grid connections shake-up

15 January 2025
Press release - 15 January 2025
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Key facts
Following approval from the energy regulator Ofgem, the National Energy System Operator (NESO), will take the next step in the delivery of connection reforms in 2025.
The new arrangements will pause the applications process for new entrants to the connections queue from Wednesday 29 January 2025 to deliver a stable foundation for implementing the new and improved grid connections process, subject to Ofgem approval.
This will provide clarity to consumers as to when to apply to be included in the new process.
New demand projects will be excepted from the pause to support growth
The new transitional arrangement will enable NESO, Transmission Owners, and Distribution Network Operators to keep up the pace in preparing for reforms that will improve the connections process and keep Britain building.

Today (Wednesday 15 January 2025) NESO, in partnership with Transmission Owners, SSEN, SP Energy Networks and National Grid Electricity Transmission has announced the next step of its plans to reform how electricity grid connections are managed in Great Britain, laying the foundations for an efficient and future ready connections process, subject to Ofgem approval that can deliver clean power and economic growth. 

Grid connections applications have continued to grow over the last year to the point that it is no longer possible to deliver in flight connections reforms in parallel with the existing connections process. In 2023/24 alone, NESO received over 1,700 queue applications, with more projects already in the queue than is required for the energy system in 2030 or even 2050.

To enable NESO, Transmission Owners and Distribution Network Operators to focus on preparing for the new Connections Reform framework, a new starting point is needed for the connections process, to ensure all projects join the new framework on the same terms. 

Following approval from energy regulator Ofgem, NESO will implement new transitional arrangements which will “pause” applications received as of Wednesday 29 January 2025. This arrangement will enable resources to be dedicated to delivery of connections reforms at pace across 2025.

There will be exceptions to this arrangement to support wider GB energy needs and economic growth. In particular, demand projects directly connecting to the national electricity transmission network (typically large industrial and commercial units), will be allowed to continue to connect and move through the current connections process, to support the continued delivery of Great Britain’s industrial development.

As part of the connections reforms planned for 2025, a new connections process will be implemented following final regulatory approval by Ofgem. Future projects will apply to join the national electricity transmission system during designated windows, and will be required to meet key progress milestones, ensuring only viable projects can move forward. This will underpin a strategic connections process that is fit for purpose to drive innovation, support growth, and deliver clean power for the nation.

Matt Vickers, Director of Connections Reform, NESO

“This transitional arrangement is critical to delivering the connections reforms we will implement later this year, subject to Ofgem approval.  It’s a significant step forward in changing the grid connections process for the better. Our reforms prioritise projects which are ready to progress, and which are needed to deliver clean power by 2030.  To reorder the queue, we need to start from a stable base This short pause in applications will allow us to work with colleagues across the network companies to prepare for the new processes we need to bring forward the electricity projects needed for the delivery of clean power by 2030 and beyond.”

“We will work closely with industry, Government, the Regulator and network companies throughout this process to help ensure a smooth transition to the new connections process in 2025.”

Christianna Logan, Director of Customers and Stakeholders at SSEN Transmission, said:

“We're looking forward to working with NESO and our customers to implement the next stage of Connections Reform over the coming months. These arrangements are needed to give our customers time to have a signed connection offer in place when the implementation stage of the process begins later this year."

John Twomey, director of customer connections at National Grid Electricity Transmission, said:

“Connections reform is progressing well and this short pause proposed by NESO will help to ensure that existing applications are processed at pace, and that industry is on the surest footing to implement a new process that is fit for the future.

“It shows that collectively with government and Ofgem, our industry is delivering the change that is needed to get the right projects connected at the right time as part of a strategically planned net zero electricity network.”

Nicola Connelly, CEO of SP Energy Networks, said: 

“Making the connection queue more efficient is essential to ensure the successful electrification of the UK economy. This is a key step in that journey, and we will work with the NESO, our customers and stakeholders to ensure new green energy projects that Britain needs will be connected to the grid as quickly and effectively as possible.”

ENDS
About NESO
The National Energy System Operator, NESO, is an independent, public corporation at the centre of the energy system taking a whole system view to create a world where everyone has access to reliable, clean and affordable energy.

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Notes to editors:

TMO4 consultation

  • Launched on 5th November 2024, this consultation focused on the reformed connections process and formation of the new connections queue. Final proposals went to Ofgem on 20th December.
  • The proposed design for the reformed connections process balances readiness (demonstrable progress by project to deliver on their connections agreement) and strategic alignment (alignment to the Government’s 2030 Clean Power Action Plan (once published).
    • This will ensure a balanced mix of generation, interconnection and storage technologies, that reduces wait times for renewable project developers, enabling faster integration of clean energy sources and ensures a more efficient achievement of Government's CP30 Plan.

Letter of comfort:

  • A copy of NESO’s letter to Ofgem requesting regulatory relief and the transitional period, alongside Ofgem’s letter back to NESO is on the website, here.

Open letter to industry: Implementing Connections Reform through new Transitional Arrangement and demand exceptions 

  • A copy of this letter is available on NESO’s website here.

UK Government’s Clean Power Action Plan 

  • Published on Friday 13th December 2024, the Government’s Clean Power Action Plan sets out the government’s view of the pathway to Clean Power by 2030, following advice earlier this year from NESO.
  • Government’s ‘Clean Power Capacity Range’ (Table 1, page 32) sets out a range of possible installed capacities for each technology in 2030 reflecting that there is no singular path to achieving clean power.
    • The Clean Power Capacity Range sets out a total installed capacity of between 204GW-231GW by 2030.
    • Government also set out technology capacity ranges to 2035 to provide a 10-year horizon for connection offers. This equates to a total installed capacity of 227GW-289GW by 2035
  • Included in the Government’s Clean Power Action Plan is a technical annex on connections reform, setting out how actions by NESO, the Department for Energy Security and Net-Zero and the energy regulator Ofgem will work together to deliver the connections reforms needed for Clean Power by 2030.