The UK Government is getting more serious when it comes to connections reform, warning that it won’t tolerate any further slippage on new grid connection offers.
In an open letter to the energy industry, DESNZ and Ofgem said delays linked to historic data errors and the reworking of network studies had already held the process back, but made clear that ‘further slippage is not acceptable’.
That intervention should not come as a surprise. As we reported yesterday, the Government is looking to go further in its push to deliver a clean energy system that works for the UK. That wider package leaned heavily on new pricing mechanisms, grid reform, land access and faster infrastructure delivery. Now, ministers are making it clear that they also expect the connections process to move with greater urgency.
Thankfully, some progress has already been made. According to DESNZ and Ofgem, 221 GW of projects that were either no longer progressing or not needed for 2035 have now been moved out of the main queue. But while weaker projects have been cleared out, battery storage is now emerging as a fresh pressure point, with more viable projects in the queue than are needed to meet the Government’s clean power goals.
The issue centres on battery storage projects that have advanced to Gate 2, the faster-track route for projects that have met the new readiness tests under connections reform. According to DESNZ and Ofgem, there is 14.8 GW more battery capacity in that queue than the top end of the 2030 clean power target range, and 61.7 GW above projected battery system need in 2035.
That is clearly a sign of a battery storage market that is booming in the UK, but it also creates a problem for the wider queue. The reform process may have succeeded in removing weaker projects, yet there is still a risk that too many battery schemes are progressing relative to what the system actually needs.
The Government is still maintaining that it supports battery energy storage, but it now faces something of a balancing act. On one side, it wants to support a technology that will be vital to a cleaner and more flexible grid. On the other, it does not want the queue to be clogged by projects that contribute to oversupply while other critical schemes face delay.
That is why, for now at least, ministers are pointing to possible solutions rather than a major reset. These include expanding bay-sharing, while also acknowledging industry proposals designed to encourage attrition through an additional financial measure. The letter also warns that non-viable projects need to leave the queue before network companies commit major capital, otherwise the result could be unnecessary redesign work, knock-on delays for stronger projects, and higher costs for bill payers.
If the Government cannot get the connections process under control, however, it is likely to move towards a more interventionist system. That was already hinted at in yesterday’s wider reform package, and this latest letter suggests ministers may not be willing to wait much longer.
