Ofgem’s recent announcement approving proposals to reform Britain’s connections process, known as ‘Connections Reform’, marks a significant step in making the necessary changes required to streamline the electricity connection arrangements in Great Britain, crucial for achieving the government’s Clean Power by 2030 (CP2030) goals.
The decision triggers a mandatory licence standstill (a legal requirement when making changes to our licences) after which the formal process of assessing all existing offers against the new criteria starts.
The window is now open for distribution-connected developers to submit their evidence to their local Distribution Network Operator (DNO), while transmission-connected customers should actively engage with the National Energy System Operator (NESO) in preparation for evidence submission. NESO has co-developed the Evidence Submission Handbook with the Energy Networks Association (ENA) and network companies to serve as a single, accessible guide – ensuring that all customers, regardless of size or technology, have a clear path forward in the reformed process.
- Further details available at: Evidence Handbook | National Energy System Operator
- Detail of Ofgem’s decision on the Connections Reform package can be found here: Decision on Connections Reform Package (TM04+) | Ofgem
Important note: Please bear with us while we work on updating our Connections pages to reflect the new connections process.
Understanding the connections challenge
We believe the current connections challenge is made up of two areas:
The existing connections arrangements
The Market (directed by policy)
An open market for generation and demand which drives developers to apply only to secure their place in the pipeline.
The Contract (governed by the process)
The connection agreement is captured within a contract which currently lacks required, consistent obligations for developers to demonstrate progress. This is being addressed via Queue Management.
The Physical Works (the work to facilitate a connection)
Currently, connection works are driven by new customer projects. This includes works such as new physical connections, e.g. a new substation, as well as potentially increasing the capacity of infrastructure such as overhead lines or cables- or driving entirely new circuits. This triggered work will then drive the connection dates for any projects entering the pipeline after the initial project. This results in inefficient allocation of works as it effectively reserves capacity for projects, potentially blocking access for others, rather than focusing on strategic physical works where they are needed across the network.
The current connections landscape
Arguably, the biggest problem currently faced by all stakeholders in the connections landscape is the size of the contracted background of connections.
In England and Wales, the connections pipeline currently stands (as of November 2023) at 500GW, comprising over 700 contractual agreements, and is continuing to grow at an accelerated rate. This representing significantly more than we will need to connect under any credible future energy needs scenario.
Work is currently underway to assess key next steps on this issue as part of NESOs Connection Reform measures.
How we work in connections
Find out more about the current ways or working to deliver customer connections, how we're preparing the electricity network for the transition to net zero and maintaining an efficient and secure power supply in England and Wales.
What is reform of the connections process driving?
We believe successful reform must deliver:
- A connections process that has an effective level of entry requirements and contractual obligations. This will effectively progress credible and ready to connect developments to in timescales that align to their needs.
- The separation of network design from the connections process, enabling strategic decisions about where to create capacity and provide for customer connections, rather than designing the network to support specific connections.
To realise this ambition, we have identified five pillars for the changes we want to see
Some of these are initiatives led by National Grid Electricity Transmission (NGET), and others are spearheaded by the National Energy System Operator (NESO) through its reform of the connections process.
NGET has identified the need to build the physical connection points ahead of customer demand, e.g. substations, which will create capacity hubs and a long-term aim of providing customers with understanding of planned capacity ahead of their applications to inform and strengthen their investment decisions.
NGET is leading on developing a new standardised modular connection point for customers, suitable for many types of project, enabling faster and more flexible connections.
The NESO is working on ensuring projects meet certain key requirements before being granted a place in the connections pipeline, e.g., securing land rights, should enable resources, time, investment, and capacity to be allocated to projects which are most likely to connect. Find out more here.
The Queue Management code modification as led by the NESO and now approved by Ofgem will ensure milestones are applied to projects and if milestones are missed, reallocate capacity to progressing projects. Find out more about Queue Management here.
To realise the benefits of a new connections regime and address the well documented issues with grid connections, NGET advocates for urgent action to address the pipeline of contracted connections. This will apply the elements of the new arrangements, once determined by industry- to the contracted background to ensure equal treatment of all future connections where possible.
