Delays in obtaining a grid connection remain the biggest obstacle in the rollout of renewables in the UK, according to a new survey conducted by Cornwall Insight in collaboration with law firm Weightmans.
In total, 75% of energy sector experts identified timely grid connections as the principal obstacle impeding the growth of renewable energy in the UK. That’s despite recent efforts by National Grid ESO to speed up the connections queue, including offering an amnesty for those projects not yet ready to proceed.
However, despite those efforts, the issue of grid connections has once again been at the forefront of the industry, particularly after Ofgem’s recent publication detailing proposed reforms for energy connection regulations. National Grid Electricity Transmission’s research underscores the severity of the issue, with their tool indicating no new transmission network connection dates available before 2033.
Cornwall Insight’s Renewables Pipeline Tracker analysis further illustrates the stagnation, revealing that over 60% of projects have not advanced in their development phase from 2018 to 2023. This stagnation is prompting renewed efforts from the Electricity System Operator (ESO), the Government, and Ofgem to implement the Connections Action Plan (CAP). The CAP, announced in November 2023, aims to streamline the connection process by addressing various issues such as energy requirements, project stalling, and capacity allocation.
The response from the market to these proposed reforms has been cautiously optimistic, with expectations that the new Government might expedite these changes. However, concerns remain about the resources available and the speed with which these reforms can effectively alter the current grid connection landscape.
Dr. Matthew Chadwick, Lead Analyst at Cornwall Insight and author of the report, stressed the urgency of resolving these issues, “While there are more than enough renewable projects in the pipeline to reach our decarbonisation objectives, there are multiple challenges to ensuring these projects come online in time to meet the target of a 2030 net decarbonised power system. Chief among these challenges is grid connections.
“Viable projects are being delayed by others that are stalled or speculative, leaving ready-to-connect projects stuck behind those unlikely to progress. Efforts by various stakeholders aim to accelerate connections and maximise the available renewable capacity. There have been positive signs from the new government that changes to the system, from planning consent changes to prioritising shovel-ready projects are on the way and Ofgem’s letter this week reaffirms the appetite for progress.
“However, there are concerns that current reforms may not go far enough or take effect fast enough. What’s clear is that without a more streamlined grid connection process, the 2030 targets will be out of reach.”
Nick Fothergill, a partner at Weightmans LLP, echoed these sentiments, “Unlocking the UK’s renewable energy potential has never been more pressing. Progress has been made in building a significant pipeline of renewable energy projects, but it’s delivering that pipeline that will make the difference – and is therefore where the focus needs to now lie.
“This report gives a real-life snapshot of the challenge ahead, from those on the front line of delivering this change.”