Ace Breaking News – Ofgem is expected to confirm the National Energy System Operator’s ambitious new plan to reform grid connections and unlock billions of investment.
Clean energy projects prioritised for grid connections
- Grid connections for businesses that will deliver clean energy prioritised, driving growth to put more money in working people’s pockets
- Pro-growth reforms to help unlock £40 billion of mainly private investment a year in clean energy and infrastructure, with industries of the future such as data centres accelerated for quicker grid connections
- Comes as £43.7 billion of private investment announced into the UK’s clean energy industries since July
So-called ‘zombie’ projects will no longer hold up the queue for connection to the electricity grid to prioritise businesses that will drive growth and deliver energy security.
Companies are currently waiting up to 15 years to be connected to the grid, leaving promising businesses ‘grid-locked’. Over the last five years, the grid connection queue has grown tenfold.
The changes will help to kick-start the economy to put more money in working people’s pockets, the first priority of the government’s Plan for Change.
Ofgem is expected to confirm the ambitious new plan later today (Tuesday 15 April), drafted by the National Energy System Operator in partnership with the energy industry.
The reforms are set to unlock an impressive £40 billion each year in predominantly private investment, driving robust economic growth, creating numerous jobs, and significantly enhancing living standards as a cornerstone of the government’s bold Plan for Change.
This builds on the latest figures showing that since July, the clean energy industry is now booming in Britain, with £43.7 billion of private investment being announced into the UK’s clean energy industries.
Energy Secretary Ed Miliband said:
Too many companies face gridlock because they can not get the clean energy they need to drive growth and create jobs.
These changes will axe ‘zombie’ projects and cut the time it takes to get high growth firms online while also fast-tracking connections for companies delivering homegrown power and energy security through our Plan for Change.
In an uncertain world, our message to the global clean energy industry is clear; come and build it in Britain because we are a safe haven. If you want certainty, stability and security when it comes to your investments, choose Britain.
The plan comes after the Prime Minister has said that a new era of global insecurity means that the government must go further and faster reshaping the economy through the Plan for Change, and that this requires a new muscular industrial policy that supports British industry to forge ahead.
Lack of access to grid connections has been a significant factor holding back new investment in UK industries.
Under the new changes, grid connections will be accelerated for industries of the future, from data centres and AI to wind and solar projects.
That means deprioritising those projects that are not ready or not aligned with strategic plans.
New commitments to investing in the UK have topped £38 billion since July 2024 for data centres alone, but grid access is the single biggest challenge facing these projects.
Today’s reforms will help fast track projects to generate homegrown, renewable electricity into homes and businesses, protecting British billpayers from the rollercoaster of global fossil fuel markets and building an energy system that can bring down bills for good.
Delivering these reforms will help unleash £40 billion a year of mainly private investment in homegrown clean power projects and infrastructure across the country, creating good jobs for engineers, welders, and construction workers.
Taking a strategic, planned approach will remove the need for tens of billions of pounds of unnecessary grid reinforcement, saving billpayers £5 billion that would have been funded through charges on bills.
Ofgem CEO Jonathon Brearley, Chief Executive Officer, Ofgem said:
The proposed connection reforms will supercharge Great Britain’s clean power ambitions with a more targeted approach anticipated to unlock £40 billion a year of investment and energise economic growth.
The reforms would cut through red tape, consign ‘zombie projects’ to the past and accelerate homegrown renewable power and energy storage connections as we head to 2030.
Houses and hospitals, electric vehicle charging stations, data centres, and the emerging AI sector would also benefit from the proposed streamlined fast-track approach, which would help boost energy security and drive down bills.
Kayte O’Neill, Chief Operating Officer, National Energy System Operator, said:
Reforming the connections process is a key enabler for delivering Clean Power by 2030 and will drive economic growth for Great Britain. Today’s milestone reflects the close collaboration across the energy industry with support from the government and Ofgem.
Together with the wider energy industry, NESO will focus on prioritising agreements for projects that are critical and shovel ready, bringing these to the front of the queue and giving developers the certainty they need to support investment decisions.
Additional Notes:
The government is also introducing legislation through the landmark Planning and Infrastructure Bill to support Ofgem and NESO in delivering the reforms.
Every family and business in the country has paid the price of Britain’s dependence on foreign fossil fuel markets, which was starkly exposed when Putin invaded Ukraine and British energy customers were among the hardest hit in Western Europe, with bills reaching record heights.
The government’s clean power mission is the solution to this crisis; by sprinting to clean, homegrown energy, including renewables and nuclear, the UK can take back control of its energy and protect both family and national finances from fossil fuel price spikes with cleaner, affordable power.
The Clean Power Action Plan estimated that Clean Power 2030 could require an average of around £40 billion of investment per year between 2025 and 2030. This includes around £30 billion of investment in generation assets per year, estimated by DESNZ, and around £10 billion of investment in electricity transmission network assets per year, estimated by NESO.
The £5 billion savings for billpayers was estimated by Ofgem in their February 2025 Impact Assessment for the TM04+ connections reforms: Consultation on connection reform (TM04+) enablers, including a statutory consultation on modifications to licence conditions
In addition to the £34.8 billion in clean energy private investment announcements secured around the October 2024 International Investment Summit, the following private investments have been announced. Since July 2024, the government has seen £43.7 billion of private investment announced into the UK’s clean energy industries.
National Wealth Fund, Barclays UK Corporate Bank and Lloyds Banking Group announced £1 billion unlocked to retrofit social housing.
The government announced the successful  projects.
Statera Energy announced financial close on £395 million debt financing platform for Thurrock Flexible Generation.
Copenhagen Infrastruture Partners announced Financial Investment Decision for Coalburn 2 and Devilla, battery energy storage system projects in Scotland
Renewable energy developer OnPath announced their ambitions to invest £1 billion in clean energy projects across the UK.
Quinbook Infrastructure Partners announced the close of financing for Cleve Hill Solar Park, the UK’s largest solar and battery storage project under construction.
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