News

Strategic Energy Plans Progress and Updates

October 14, 2024

Under the Connections Action Plan, several measures have already delivered promising results:

  • Over 10 GW of stalled projects removed from the queue.
  • Over 25 GW of new capacity released for storage projects on the existing network.
  • Around 10 GW of existing projects have had their connection dates accelerated by an average of six years.

As the government continues to prioritise clean power initiatives, the Clean Power 2030 plan (CP2030) and the Strategic Spatial Energy Plan (SSEP) will be critical in identifying projects ready for connection. The National Energy System Operator (NESO) is expected to provide advice on a pathway to clean power by 2030 in the coming weeks.

In September, Ofgem released an open letter emphasising the need to align the connections process with broader strategic plans like CP2030. Proposed changes to licence conditions will ensure network companies prioritise projects that meet readiness criteria and align with system plans.

Key developments include:

  • Revised Licence Conditions: New requirements for projects to enter the connections queue.
  • TMO4+ Code Modifications: Parallel reforms to expedite implementation of these changes, with consultations expected by year-end.

Discussions this month focused on how technology criteria in the TMO4+ could align with CP2030:

  1. Filtering Based on Capacity Limits: Projects aligning with CP2030 would form the connections queue, while others receive indicative offers only.
  2. Prioritizing Projects: The queue would include all ready projects, but CP2030-prioritized projects would take precedence.

The Board called for further analysis of both options, with discussions to continue next month.

NESO is exploring financial criteria options to ensure projects demonstrate financial commitment to retain their place in the queue. Possible measures include additional fees or charges, with consultations planned for early 2025 to finalise decisions.

In October, the Board will review detailed proposals on filtering versus prioritizing connections. Ofgem is also preparing to launch a consultation on its end-to-end review of the connections process, aiming to identify areas for improvement.

This critical work remains a priority, with progress set to align with the UK’s clean energy goals and the broader strategic vision for 2030.